Congress Passes Tax Extenders and Government Spending Bill

On December 18, Congress passed a $1.15 trillion omnibus appropriations bill as well as a tax extenders package. The omnibus bill consolidates all 12 appropriations bills for the 2016 fiscal year into one large spending package. Both measures are coupled into one massive bill (HR 2029), the Consolidated Appropriations Act of 2016. One major victory for Republicans in the bill is repeal of the 40-year old ban on crude oil exports. In exchange for repealing the crude oil export ban, Democrats negotiated to extend expiring renewable energy tax breaks. The bill also contains a provision to extend the suspension of the Federal Motor Carrier Service Administration (FMCSA) hours of service (HOS) regulations on the 34-hour restart rule. The 34-hour restart rule was issued in 2013 and mandates that during the 34-hour restart period a driver must take two breaks between 1 a.m. and 5 a.m. and limit those breaks to once per week. Additionally, the provision requires FMCSA to conduct a study on the rule’s safety and health benefits. 

The tax extenders package extends or makes permanent several tax breaks for businesses and individuals. Also included in the bill are two major victories benefiting the ready mixed concrete industry on bonus depreciation and Section 179 expensing limits which bring much needed certainty to the industry. Specifically, the bill extends the 50 percent bonus depreciation for property purchased in 2015 through 2019. For years 2015, 2016 and 2017, the bonus depreciation is 50 percent and phases down to 40 percent for 2018 and 30 percent for 2019. The bill also permanently extends Section 179 expensing limits and phase-out amounts that were in place from 2010 through 2014 at $500,000 and $2 million, respectively. NRMCA worked in a coalition led by the Associated Equipment Distributors to ensure that these provisions would be included in the final package. NRMCA also joined 22 other associations to sign onto a letter urging Congress to include these provisions in the bill.