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Obama renews tax breaks, creates ABLE accounts

taxDARLENE SUPERVILLE, Associated Press

WASHINGTON (AP) — President Barack Obama has signed legislation renewing dozens of costly tax breaks for millions of businesses and individuals.

The bill signed Friday extends the breaks through Dec. 31. Taxpayers will be able to claim them on their 2014 income tax returns.

But the fate of the tax provisions beyond this year will again be uncertain.

Congressional analysts have estimated that the breaks will add nearly $42 billion to the budget deficit over the next decade.

The provisions benefit big corporations and small business, struggling homeowners and residents of states without a state income tax. More narrow provisions include tax breaks for filmmakers, racehorse owners and rum producers in Puerto Rico and the Virgin Islands.

The bill includes a provision letting people with disabilities open tax-free savings accounts.

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