FOR IMMEDIATE RELEASE: Congress Approves Tax Extenders Bill: Limited-Time Tax Benefits May Be Available

NADA and ATD strongly supported and advocated for the renewal of these pro-dealer measures.

Here is a helpful article from ATD Insider

Congress is sending to the President a measure that increases small business expensing and bonus depreciation, which will allow dealers and their customers to expense a larger portion of equipment purchases for 2014. The Senate last night approved a House-passed bill, H.R. 5771, to renew several expired tax provisions that will benefit automobile and truck dealers and their customers. These provisions apply to purchases in 2014 only. Dealers and their customers must act quickly to take advantage of these tax benefits.

First, the bill contains a retroactive increase of the limit on business equipment eligible under Section 179 small business expensing to $500,000 for eligible new and used equipment purchased in 2014. Without this bill, the maximum eligible for Sec. 179 expensing in 2014 would have been $25,000. The bill also includes an extension of the 50 percent bonus depreciation deduction for new business equipment acquired and placed in service in 2014.

In addition to these changes, there is an extension of the additional $8,000 in first-year depreciation for certain business vehicles purchased in 2014. This provision may provide substantial potential savings for a dealership’s business customers, but they must purchase qualifying vehicles before Dec. 31, 2014.

Dealers and their customers are encouraged to consult their tax advisors to determine the exact amount of their potential tax savings, which is dependent on their own particular tax situation and the interplay of the provisions described above.

President Obama is expected to sign this legislation. NADA and ATD strongly supported and advocated for the renewal of these pro-dealer measures.
Source: ATD-NADA Legislative Affairs