Expired Tax Provisions Extended in the Bipartisan Budget Act of 2018

On February 9th, President Trump signed the Bipartisan Budget Act of 2018 (H.R. 1892), which included extensions on tax incentives, also called the “extender” provisions, that expired at the end of 2016. Many of these tax provisions were only extended for the 2017 tax year and will be expired for 2018.

Some of the more significant provisions that were extended and will affect individuals include:

  • Above-the-line deduction for qualified tuition and related expenses for higher education
  • Mortgage insurance premiums deductible as qualified residence interest
  • Exclusion for discharged home mortgage debt
  • Credit for residential and nonbusiness energy property
  • Credit for new qualified fuel cell motor vehicles and alternative fuel vehicle refueling property

See below for charts of all the extended tax provisions. If you have any questions, please contact your tax advisor today.

Individual Extender Provisions
Mortgage insurance premiums deductible as qualified residence interest Extended through 2017
Above-the-line deduction for qualified tuition Extended through 2017
Exclusion from gross income for indebtedness discharge on qualified principal residence Extended through 2017

 

Business Extender Provisions
Indian employment tax credit Extended through 2017
Empowerment zone tax incentives Extended through 2017; termination will not apply if the nominating entity provides a new termination date in a manner the IRS provides.
Seven-year write-off for motorsport racing track facilities Extended for properties placed in service before Jan 1, 2018.
Alternate tax treatment for Corporation’s qualified timber gains Extended through 2017
Expensing production costs for qualified theatre, film and television productions Extended through 2017
Deduction with respect to income from Puerto Rican domestic production activities Extended through 2017

 

Energy Extender Provisions
Credit for certain nonbusiness energy property Extended through 2017
Credit for qualified fuel cell motor vehicles Extended through 2017
Credit for residential energy efficient property Extended through 2021
Credit for plug-in electric motorcycles Extended through 2017
Alternative fuel vehicle refueling property credit Extended through 2017
Credit for second generation biofuel producers Extended through 2017
Income tax credits for biodiesel and renewable diesel fuel Extended through 2017
Credit for production of Indian coal Extended through 2017
Non-wind renewable power facilities eligible for the electricity production credit or investment credit Beginning-of-construction date extended to 2017
Construction of new energy efficient homes Extended through 2017
Energy investment credits Five year extension and phase-out
Special depreciation allowance for second generation biofuel plant property Extended through 2017
Deduction for energy efficient commercial buildings Extended through 2017
Special rule for sales or dispositions to implement Federal Energy Regulatory Commission or state restructuring policy for qualified electric utilities Extended through 2017
Excise tax credits and outlay payments for alternative fuel and excise tax credits for alternative fuel mixture Extended through 2017
Oil Spill Liability Trust Fund financing rate Extended through 2017

 

Miscellaneous Extender Provisions
Credit for railroad track maintenance Extended through 2017
Credit for mine rescue team training Extended through 2017
Three-year depreciation for race horses two years old or younger Extended through 2017
Accelerated depreciation for business property on an Indian reservation Extended through 2017
Advanced mine safety equipment expensing Extended through 2017
Credit for American Samoa economic development Extended through 2017
Increase in limit on cover of rum excise tax revenues to Puerto Rico and the Virgin Islands Extended for five years

 


ABOUT THE AUTHOR

John P. Weidman, CPA, CGMA

John is a Principal at BSSF and a key member of the tax department. He provides interim and year-end tax planning services to his diverse base of individual and business clients and focuses on helping them maneuver through the tax rules and regulations to provide the best results. Additionally, he is an annual presenter for the BSSF Payroll & Information Reporting Seminar.