Share “New tax law packed with breaks for businesses”

New tax law packed with breaks for businesses

Published on NewsOK Modified: January 3, 2013 at 5:36 pm •  Published: January 3, 2013
Advertisement

Among the provisions in the new law are:

—A tax credit for research and development, benefiting a wide range of industries, including manufacturers, pharmaceutical companies and high tech companies. Cost: $14.3 billion.

—An exemption that allows banks, insurance companies and other financial firms to shield foreign profits from being taxed by the U.S. The tax break is important to major multinational banks and financial firms. Cost: $11.2 billion.

—A tax break that allows profitable companies to write off large capital expenditures immediately — rather than over time — giving some companies huge tax shelters. The tax break, known as bonus depreciation, benefits automakers, utilities and heavy equipment makers. Cost: $5 billion.

—A tax credit for the production of wind, solar and other renewable energy. Cost: $12.2 billion.

— A provision that allows restaurants and retail stores to more quickly write off the cost of improvements. Cost: $3.7 billion.

—Increased tax rebates to Puerto Rico and the Virgin Islands from a tax on rum imported into the United States. The U.S. imposes a $13.50 per proof-gallon tax on imported rum, and sends most of the proceeds to the two U.S. territories. Cost: $222 million.

—A 50 percent tax credit for expenses related to railroad track maintenance through 2013. Cost $331 million.

—A provision that allows motorsport race tracks to more quickly write off improvement costs. Cost: $78 million.

—Enhanced deductions for companies that donate food to the needy, books to public schools or computers to public libraries. Cost: $314 million.

—A tax break that allows TV and movie productions to more quickly write off expenses. Sexually explicit productions are ineligible. Cost: $248 million.

— A tax credit of up to $2,500 for buying electric-powered vehicles was expanded to include electric-powered motorcycles. Golf carts, however, were excluded. Cost: $7 million. Sen. Ron Wyden, D-Ore., took credit for this tax break, saying it would help Oregon-based Brammo, which manufactures electric motorcycles.

"The electric motorcycle industry is poised to create tens of thousands of U.S. jobs over the next five years, led by companies like Oregon's Brammo," Wyden said. "This amendment helps promote the development of a promising U.S. industry and support the transition to a low-carbon American economy."

___

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap