Senate Bill 726 – IRC Update

Following provisions in the federal Protecting Americans From Tax Hikes (PATH) Act of 2015, NCACPA urged lawmakers in the NC General Assembly to make conformity determinations so taxpayers and businesses could be alleviated of much uncertainty. The IRC Update Bill was passed in May of 2016, which, importantly, decoupled on a permanent basis two provisions made permanent at the federal level under the PATH Act—enhanced Section 179 expensing, and tax-free distribution from IRAs to public charities. Section 179 was of extra significance, as legislative leaders were previously inclined to leave the state deduction limit at $25,000 and the investment limit at $200,000.

June 2016