A few weeks ago, on July 21, the Senate Finance Committee approved a two-year extension of numerous business tax credits and incentives in a 23-3 majority vote. If approved by Congress and signed by the President, the group of more than 50 tax credits and deductions would be extended through the end of 2016.

This group of tax provisions, known as tax extenders, represents substantial tax savings to both individuals and businesses. Many of the temporary tax extensions expired on January 1, 2015.

Three major business incentives are included in this proposed extension:

• The R&D Tax Credit: This tax credit, created to spur and support research & development activities, would be modified to grant certain small businesses the option of claiming the credit against their Alternative Minimum Tax (AMT) or payroll tax liabilities. (In the past, small businesses could only claim the credit against their income tax liabilities.)

• The WOTC: For the Work Opportunity Tax Credit, an additional “target group” would be added, enabling employers to receive a tax credit of up to $2,400 per employee for hiring individuals who have exhausted state and federal unemployment benefits.

• 179D Deductions: Under this proposed extender bill, tribal governments and non-profit organizations will also be permitted to allocate their 179D deductions to the architects or engineers who designed their qualifying energy efficiency projects. The bill would also increase standards for energy efficiency to align with ASHRAE Standard 90.1-2007.

Although Congress may not approve the tax extenders bill until the end of the year, large bipartisan support suggests the bill will become law as early as this fall. With the tax provisions extender bill offering tax planning consistency for a few years, your business is encouraged to create substantial growth opportunities. Collectively, the extenders are worth about $95.2 billion.

The time to start taking advantage of these lucrative business incentives is today. Planning now for 2015 and 2016 ensures you are doing everything possible to maximize your tax savings, so by the end of the calendar year, your documentation is in line with standards upheld by the IRS.

To take advantage of every possible tax-savings opportunity, it is recommended that you consult with a tax expert who is up to date on the latest developments and understands how to accurately capture these tax credits and incentives.

Ready to learn more about planning for the tax provisions extender bill? Schedule your 30-minute, no-cost consultation with a tax expert at CTI today.