Rep. LaMalfa Supports Passage of Major Tax Credit Measure for Families, Small Businesses & Farms

Dec 17, 2015
Press Release

Washington, DC – Rep. LaMalfa today supported a measure that extends a wide array of tax credits for American families, students, farms and employers, creating more certainty and decreasing costs for taxpayers. The bill ends a cycle of last minute, retroactive extensions that have inhibited investment and prevented economic growth. Passed on a 318-109 vote, the proposal will now be considered by the Senate.   

“This package will not only decrease taxes for families across the nation, it will spur more investment and growth by small businesses and farms in Northern California. It’s simply unconscionable that Americans have had to wait until the last days of each year to find out under which laws they’ll be taxed. Today we ended that vicious cycle, and Americans can finally make financial decisions with greater stability to plan for the future. This package supports education through tax credits for students and teachers, and increases protections to rein in the IRS,” said LaMalfa. “Particularly important components for the First District are provisions that allow farmers and ranchers to make informed decisions about how new tractors and other equipment will be taxed. ”    

Tax credits for families, students and teachers include the following:

  • Permanent extension of the child tax credit of up to $3,000 to help working families meet their needs.
  • Permanent extension of the K-12 teacher classroom expenses credit of up to $250 to offset the out-of-pocket expenses many teachers incur.
  • A two-year extension of the tax deduction of up to $4,000 for tuition and related expenses for higher education.
  • Permanent extension of higher education tax credit up to $2,500 for qualified tuition and related postsecondary education expenses.
  • An expanded definition of qualified higher education expenses for which tax-preferred distributions from 529 accounts are eligible to include computer equipment and technology.

Pro-business tax credits aimed at creating economic growth and certainly for employers include the following:

  • The bill makes permanent the “Section 179” small business expensing of up to $500,000 for investment in equipment, software, property and other capital expenses. 
  • A permanent extension of the research and development (R&D) tax credit and an expansion of the credit for more small businesses.  
  • A five-year extension of the 50-percent accelerated depreciation for property.

Obamacare taxes rolled back by the bill include the following:

  • A two-year moratorium on the medical device tax of 2.3% on devices like pacemakers, MRI machines, and artificial heart valves.
  • A two-year moratorium on the “Cadillac Tax”, which imposes an arbitrary 40% tax on high cost health plans.   

Congressman Doug LaMalfa is a lifelong farmer representing California’s First Congressional District, including Butte, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou and Tehama Counties.