Before leaving town for the year, Congress finally acted on a number of expiring provisions in the tax code. All in all, they passed 55 tax extenders retroactive to January 1, 2014. Some lawmakers wanted to make certain provisions permanent, but no agreement could be made to satisfy both parties. At the end of the day, all provisions were given only a one year extension. This means we may be back again next year (same time, same place) to discuss these issues again.

Here are some of the highlights among the tax extenders passed for this year:

• Section 179 Expensing: Small to medium sized businesses will be able to expense up to $500,000 in capital investments for qualifying equipment purchases and off-the-shelf computer software (and up to $2 million for the overall investment) rather than depreciating over time. The amount was scheduled to drop in 2014 to $25,000 for equipment and $200,000 for the overall investment.

• Section 168 Bonus Depreciation: This allows businesses to accelerate their depreciation schedule by deducting up to 50% of the cost of equipment and software during the year in which it was purchased.

• Section 51 Work Opportunity Credit: Employers who hired workers in certain classes (such as military veterans) can continue to claim a credit of up to $9600 per qualified worker through 2014.

• Section 62: Maintains a deduction of up to $250 for non-reimbursed expenses for school teachers at the elementary and secondary levels. This is an above-the-line deduction that can be claimed even if you do not choose to itemize.

• Section 164: Maintains a deduction for state and local sales taxes in lieu of state and local income taxes. This is especially beneficial for residents in states with no income tax (such as Nevada and Texas) and/or consumers that made large taxable purchases in 2014.

• Section 222: Maintains a deduction for qualified tuition and related expenses for post-secondary education of up to $4000. Like section 62, this is also an above-the-line deduction that can be claimed regardless of whether or not you itemize.

• Section 408: Allows individuals age 70 ½ and older to continue taking tax-free distributions from retirement accounts (up to $100,000) if they are donated directly to a qualified public charity.

• Section 163: Allows homeowners that are forced to take out private mortgage insurance (PMI) to deduct premiums paid as qualified residence interest.

There are nearly 50 additional tax extenders that benefit individuals and businesses in numerous areas. For a full listing of the deductions and credits that were extended in 2014 and to find out which ones may benefit you, speak to your local accounting firm.