A taxpayer may elect (under Section 179 of the Internal Revenue Code) to expense the cost of qualifying property, rather than recover such costs through depreciation deductions, with certain limitations.

The Protecting Americans from Tax Hikes (PATH) Act of 2015 makes the following changes to the Section 179 expensing election:

• The $500,000 expensing limitation and $2 million phase-out amounts are retroactively extended and made permanent. (Code Sec. 179(b), as amended by Act Sec. 124(a))

• Both the $500,000 and $2 million limits are indexed for inflation for tax years beginning after December 31st, 2016. (Code Sec. 179(b)(6), as amended by Act Sec. 124(f))

• The rule that allows expensing for computer software is retroactively extended and made permanent. (Code Sec. 179(d)(1)(A)(ii), as amended by Act Sec. 124(b))

• Air conditioning and heating units are eligible for expensing for tax years beginning after December 31st, 2015. (Code Sec. 179(d)(1), as amended by Act Sec. 124(e))