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Tax Extenders

For whatever reason, Congress has a flare for the dramatic.  It became popular about 14 years ago to pass tax legislation that had sunset provisions.  What that means is that in order to extend these tax provisions, Congress would have to act.  They don’t call it an “Act of Congress” for no reason.  Typically, in our industry it is just understood that Congress will act on these expiring tax provisions, so it makes our job as professionals a little easier for planning purposes.  The following is a list of expiring tax provisions, these are not all inclusive, but I have included the most popular ones.


  1. Above-the-Line Deduction for Certain Expenses of Elementary and Secondary School Teachers

  2. Deduction for State and Local Sales Taxes

  3. Above-the-Line Deduction for Qualified Tuition and Related Expenses

  4. Premiums for Mortgage Insurance Deductible as Qualified Interest

  5. Parity for Exclusion for Employer-Provided Mass Transit and Parking Benefits

  6. Exclusion of Discharge of Principal Residence Indebtedness from Gross Income for Individuals

  7. Credit for Health Insurance Costs of Eligible Individuals

For businesses the list is even more extensive:

  1. Tax Credit for Research and Experimentation Expenses

  2. Work Opportunity Tax Credit

  3. Indian Employment Tax Credit X X X X X X

  4. Accelerated Depreciation for Business Property on Indian Reservations

  5. Credit for Railroad Track Maintenance

  6. 15-Year Straight-Line Cost Recovery for Qualified Leasehold, Restaurant, and Retail Improvements

  7. Treatment of Certain Dividends of Regulated Investment Companies

  8. Employer Wage Credit for Activated Military Reservists X X

  9. Special Expensing Rules for Film and Television Production X X

  10. RIC Qualified Investment Entity Treatment under FIRPTA

  11. Special Rules for Qualified Small Business Stock X X

  12. Increase in Expensing to $500,000 / $2,000,000 and Expansion of Definition of Section 179 Property/Bonus Depreciation

  13. Reduction in S Corporation Recognition Period for Built-In Gains Tax X

  14. Election to Accelerate AMT Credits in Lieu of Additional First-Year Depreciation

  15. Low-Income Housing Tax Credit (LIHTC)

Charitable Provisions

  1. Enhanced Charitable Deduction for Contributions of Food Inventory X X X l

  2. Tax-Free Distributions From Individual Retirement Accounts for

  3. Charitable Purposes

  4. Basis Adjustment to Stock of S Corporations Making Charitable

  5. Contributions of Property

  6. Special Rules for Contributions of Capital Gain Real Property for

  7. Conservation Purposes

Energy Provisions

  1. Construction Date for Eligible Facilities (Including Wind) to Claim the Production Tax Credit (PTC) or the Investment Tax Credit (ITC) in Lieu of the PTC

  2. Special Rule to Implement Electric Transmission Restructuring

  3. Credit for Construction of Energy Efficient New Homes

  4. Energy Efficient Commercial Building Deduction

  5. Mine Rescue Team Training Credit

  6. Election to Expense Mine-Safety Equipment

  7. Credit for Energy Efficient Appliances

  8. Credit for Nonbusiness Energy Property

  9. Alternative Fuel Vehicle Refueling Property

  10. Incentives for Alternative Fuel and Alternative Fuel Mixtures

  11. Incentives for Biodiesel and Renewable Diesel

  12. Placed-in-Service Date for Partial Expensing of Certain Refinery Property

  13. Credit for Electric Drive Motorcycles and Three-Wheeled Vehicles

  14. Second Generation (Cellulosic) Biofuel Producer Credit

  15. Credit for Production of Indian Coal

  16. Special Depreciation Allowance for Second Generation (Cellulosic) Biofuel Plant Property

  17. Community Assistance Provisions

  18. Qualified Zone Academy Bonds – Allocation of Bond Limitation

  19. New Markets Tax Credit

  20. American Samoa Economic Development Credit

  21. Empowerment Zone Tax Incentives

As you can see the list is pretty extensive.  Typically these extenders, have been extended by now.  However, this is an election year, and if these are extended, they won’t be until after the election and by a lame duck Congress.

The problem for tax accountants is how do we plan in the wake of an uncertain tax climate?  The answer is that we typically know from all the chatter what will be extended and what won’t be.

If you have a major life change, or decision that you have to make, contact our firm, and we can discuss the tax implications of your decision.

Reference: History Of The PAN Card.

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