Tax Extenders

On December 20, 2019 the President signed the Consolidated Appropriations Act, 2020 and Further Consolidated Appropriations Act, 2020. These bills extended many tax provisions that were scheduled to expire and resurrected some that had already expired.

A brief overview of the tax law changes are discussed below:

• For families and individuals:

  • Principle residence debt forgiveness extended through 2021
  • Mortgage insurance premium deduction extended through 2020
  • Medical expense deduction floor lowered from 10% to 7.5% through 2021
  • Tuition and fees deduction extended through 2020
  • Black lung disability trust fund excise tax extended through 2020

• For businesses and communities:

  • Indian employment credit extended through 2020
  • Railroad track maintenance credit extended through 2023
  • Mine rescue team training credit extended through 2020
  • Classification of certain race horses as 3-year property extended through 2020
  • 7-year accelerated depreciation for business property on Indian reservations extended through 2020
  • Expensing rules for certain productions extended through 2020
  • Empowerment zone tax incentives extended through 2020
  • American Samoa economic development credit extended through 2021

• Energy production and efficiency:

  • Biodiesel and renewable diesel credit extended through 2022
  • Second generation biofuel producer credit extended through 2021
  • Nonbusiness energy property incentives extended through 2020
  • Qualified fuel cell motor vehicles credit extended through 2020
  • Alternative fuel refueling property credit extended through 2020
  • 2-wheeled plug-in electric vehicle credit extended through 2021
  • Renewable electricity credit extended through 2021
  • Production credit for Indian coal facilities extended to 15-year period
  • Energy efficient home credit extended through 2020
  • Second generation biofuel plant property allowance extended through 2021
  • Energy efficient commercial building deduction extended through 2020

For details, you may review the Consolidated Appropriations Act, 2020 on the U.S. Congress website.