KPMG report and analysis of year end tax legislation | KPMG | GLOBAL

KPMG report: Analysis of year-end tax legislation

Analysis of year-end tax legislation in United States

President Obama on December 18, 2015, signed the “Consolidated Appropriations Act, 2016,” which includes tax-related provisions in Division P and Division Q (the “Protecting Americans from Tax Hikes Act of 2015”—referred to as the “PATH Act”).


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The new law contains significant policy changes. For example:

  • It makes permanent some tax incentives that previously had expiration dates, and extends other temporary incentives for varying time periods. Some of the provisions that were extended or made permanent also were modified.  
  • It temporarily suspends the medical device excise tax and postpones the implementation of the so-called “Cadillac tax” on certain health plans.
  • It includes significant tax law changes relating to real estate investment trusts (“REITs”), the Foreign Investment in Real Property Act (“FIRPTA”) rules, loss deferral under section 267, the section 199 rules as applied to independent oil refiners, tax-exempt organizations, certain procedural matters, and other issues.  
  • It includes a temporary extension of the ban on states and localities taxing internet access.


Read a January 2016 report [PDF 684 KB] prepared by KPMG LLP that summarizes and includes observations about key new tax law provisions

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