Wednesday, December 16th, 2015
The Protecting Americans from Tax Hikes (PATH) Act would resolve four key issues that affect plastics. Specifically, the PATH Act would:
- Permanently extend the Research & Development Tax Credit – This has the potential to unlock a great deal of innovation in the plastics industry.
- Extend “Bonus Depreciation” for Five Years – Bonus depreciation is an added amount of depreciation that can be claimed by a business on property it acquired and placed in service during 2015 through 2019. This facilitates new purchases of equipment.
- Permanently Extend Section 179 “Small Business Expensing” – The bill locks in the small business expensing limitation at $500,000, lifting it from its current $25,000 ceiling.
- Place a Two-Year Moratorium on the Medical Device Excise Tax – Due to their superior design flexibility, plastics are increasingly used in medical devices. This tax harms job creation and stymies innovation in the medical device sector.
Combined, these provisions would greatly benefit the public, and anyone who touches or is involved in the plastics’ supply chain.
We encourage both members of the U.S. House and U.S. Senate to act quickly to advance this bipartisan bill.