Outgoing Congress Extends Tax Benefits

Before adjourning for the year, the outgoing Congress passed several important tax extensions that expire at the end of 2007 that affect franchisees, according to the just released January issue of IFA Insider.

• A fifteen-year depreciation schedule was extended for leasehold and restaurant improvements.
• Another tax package extension provides incentives to hire groups with high unemployment rates or special employment needs. The Work Opportunity Tax Credit provides federal income tax credit to employers of $2,400 per year, allowing employers to recover costs of training and retaining disadvantaged workers.
• The limits on annual contributions to Health-Savings Accounts (HSAs) were increased to $2,850 for individuals and $5,650 for families per year, no matter when in the year contributions are started.

For more information regarding the tax and health-care package, click here (pdf).