Business in the Islands Gets a Boost

Author: Keith Huggett 

Continuing our travels through the Taxpayer Relief Act of 2012, we head to the the big state of New York and the islands of American Samoa and San Juan, before we return to the states to visit mining country.

In New York City, the Taxpayer Relief Act extends the time allowed for issuing bonds for the New York Liberty Zone. The New York Liberty Zone is an area around the site of the World Trade Center, on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York. The purpose of these bonds is to help boost areas originally damaged back on that fateful day in 2001.

In American Samoa, the Act has extended and modified the credit allowing for income from active business operations earned through tax years beginning before January 1, 2014 and now makes it available to all qualifying manuafacturing businesses operating in American Samoa.

In Puerto Rico, the Act extends for two years, through tax years beginning before January 1, 2014, the provision extending the section 199 domestic production activities deduction. From January 1, 1012 through December 31, 2013, The provision for paying $13.25 per gallon to cover over a $13.50 per proof gallon excise tax on distilled spirits imported into the United States from Puerto Rico and the Virgin Islands has been retroactively extended.

And, finally, back in mining country, for tax years beginning after December 31, 2011 through tax years beginning before January 1, 2014, the credit for the training of mine rescue teams has been retroactively extended. The Act also extends for two years retroactively from January 1, 2012 through December 31, 2013 the provision that provides businesses with 50% bonus depreciation for certain qualified underground mine safety equipment.

These may not seem like big improvements to all of us, yet to someone in that particular field, it may seem like a great deal, or maybe just a small handout from the government, given to make peace. In a country as big as ours, with demands left and right it has to be hard to keep everyone happy.

Should you have any questions about your taxes, and how the Taxpayer Relief Act has an impact on you, please contact us. The Tax Office Inc., specializes in pro-active tax planning, tax preparation, tax representation, and many other services.