The House and Senate passed approved legislation (H.R. 5771) to extend for one year a number of tax provisions that expired at the end of year 2013. This has been in the works for most of this year and bipartisan negotiations for a longer-term extension collapsed after the President issued a veto threat of a nearly completed package. The one-year bill prevents a tax increase on families and businesses as taxpayers begin to file their taxes for 2014.

Among the tax provisions extended was the reinstatement of bonus depreciation for 2014. Associated Equipment Distributors has provided detailed information for you about the capital investment incentives in the package. Click here for more information.

Other business tax credits included in the bill are:

• Section 179 "Small Business Expensing." The provision would extend the small business expensing limitation and phase out amounts in effect from 2010 to 2013 ($500,000 and $2 million) to property placed in service during 2014. These amounts currently are $25,000 and $200,000, respectively;

• Extension of 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements;

• Extension of work opportunity tax credit;

• Extension of employer wage credit for employees who are active duty members of the uniformed services; and

• Extension of research credit.