Tax Extenders

On December 18,2015, the President signed into law the Protecting American from Tax Hikes Act of 2015 (PATH Act). The new law extends several tax provisions retroactive to the beginning of 2015, and also makes some provisions permanent.


The following list identifies tax extender items that have been reinstates retroactive to January 1, 2015, along with a brief description of the provision.

>Enhanced American Opportunity Tax Credit (Hope Credit): The American Opportunity Tax Credit (AOTC) allows a credit of up to $2,500 for four years of post-secondary education. The new law makes the enhanced AOTC permanent.

>Educator Expenses: The new law makes the adjustment to income for qualified expenses of elementary and secondary school teachers permanent. The law also indexes the current expense cap of $250 for inflation beginning in 2016.

> Additional Child Tax Credit: The refundable portion of the Child Tax Credit has an income threshold amount of $10,000, indexed for inflation. The extender legislation permanently sets the threshold at an unindexed $3,000, which will allow for a higher credit for taxpayers who qualify.