Trump Signs Bipartisan Budget Act; Tax Extenders Included

If it wasn’t bad enough that we are all still trying to digest the impact of tax reform passed late last year,  President Trump on February 9 signed the Bipartisan Budget Act (P.L. 115-123 ) into law after a brief government shutdown occurred overnight. 

The Bipartisan Budget Act contains more than a handful of tax provisions, including disaster tax relief and the extension of over 30 expired tax breaks. The majority of the tax relief included in the legislation applies for the 2017 tax year only.

The tax extenders included in the legislation, some with minor modifications, are as follows (extended through 2017 unless noted):

  • exclusion from gross income of discharge of qualified principal residence indebtedness;

  • mortgage insurance premiums treated as qualified residence interest;

  • above the line deduction for qualified tuition and related expenses;

  • Indian employment tax credit;

  • railroad track maintenance credit;

  • mine rescue team training credit;

  • classification of certain race horses as three-year property;

  • seven-year recovery period for motorsports entertainment complexes;

  • accelerated depreciation for business property on an Indian reservation;

  • election to expense mine safety equipment;

  • special expensing rules for certain productions;

  • deduction allowable with respect to income attributable to domestic production activities in Puerto Rico;

  • special rule relating to qualified timber gain;

  • empowerment zone tax incentives;

  • American Samoa economic development credit;

  • credit for nonbusiness energy property;

  • credit for nonresidential energy property (extended through 2021 and modified);

  • credit for new qualified fuel cell motor vehicles;

  • credit for alternative fuel vehicle refueling property;

  • credit for 2-wheeled plug-in electric vehicles;

  • second generation biofuel producer credit;

  • biodiesel and renewable diesel incentives;

  • production of credit for Indian coal facilities (extended to a 12-year period);

  • credits with respect to facilities producing energy from certain renewable resources;

  • credit for energy-efficient new homes;

  • energy credit (extended through 2021 and modified);

  • special allowance for second generation biofuel plant property;

  • energy efficient commercial buildings deduction;

  • special rule for sales or dispositions to implement FERC or state electric restructuring policy for qualified electric utilities;

  • excise tax credits relating to alternative fuels;

  • oil spill liability trust fund financing rate;

  • temporary increase in limit on cover over rum excise taxes to Puerto Rico and the Virgin Islands;

  • waiver of limitations with respect to excluding from gross income amounts received by wrongfully incarcerated individuals (extended through December 18, 2018); and

  • carbon dioxide sequestration credit (enhanced, modified and generally extended through 2023).

If you have any questions regarding the impact of these provisions on your 2017 tax returns, please do not hesitate to contact us. 

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