United States

Middle market businesses may benefit from tax extenders package


President Obama signed a massive spending and tax bill on Friday, Dec. 18, 2015. The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) makes permanent several popular tax incentives, extends most others for two years or more, and adds some important new, permanent tax provisions.

If you are a leader or owner of a middle market business, you may be able to benefit from many of the extended incentive programs. Among the most important longer-term extensions are:

  • Research and development tax credit made permanent and liberalized for certain small businesses
  • Section 179 equipment expensing made permanent, with higher limits and phase-outs
  • Bonus depreciation extended through 2019
  • Work Opportunity Tax Credit extended through 2019

Some credits and incentives are frequently utilized by large organizations but may be overlooked by the middle market (see 5 myths that keep companies from filing for WOTC). By making several incentives permanent and extending others, Congress has made it easier for businesses to commit the time and resources to manage these incentives, which can have a strong positive effect on cash flow. 

Please click here to read a summary of the extended and other tax provisions that are most relevant to leaders and owners of middle market businesses.

Tom Windram


Tom leads the technical research and analysis for RSM’s federal credits and incentives team nationally. Reach him at tom.windram@rsmus.com.

Areas of focus: Federal Credits & IncentivesWashington National Tax