Thank you to those who attended my presentation at FMA’s Annual Meeting. Based on FMA member feedback, below is a recap of the information I discussed…
I covered the recent tax reform bill’s impact on American manufacturers and highlighted key areas where the legislation stands to benefit the industry. In addition to lower corporate rates, the bill extends, strengthens or keeps in place a number of vital incentives, making the manufacturing sector one of the main beneficiaries of this legislation.
Here are a few key highlights regarding the new law:
- The R&D Tax Credit- strengthens the credit due to the elimination of corporate AMT and the curbing of the number of companies affected by individual AMT
- Bonus Depreciation- companies are now allowed to immediately expense the full cost of qualified property acquired and placed into service before 2023 and removes the requirement for taxpayers to be the original user of the property
- 179 Expensing- allows businesses to immediately expense up to $1 million of the cost of certain depreciable assets and reduces the amount available for expensing by the amount that the cost of the assets exceed $2.5 million
- New Deduction for Pass-Throughs- taxpayers are potentially eligible for a deduction of the lesser of their combined qualified business income or 20% of their taxable income
- IC-DISC- retains this valuable export incentive
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For more information on these changes or for more information on the R&D Tax Credit, complete the form below.