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 2026
  • Mortgage insurance premium deduction extended through 2021
  • Medical expense deduction floor lowered from 10% to 7.5% made permanent
  • Tuition and fees deduction is now expired
  • Black lung disability trust fund excise tax extended through 2021

• For businesses and communities:
  • New Markets Tax Credit extended through 2025
  • Work Opportunity credit extended through 2025
  • Indian employment credit extended through 2021
  • Railroad track maintenance credit made permanent.
  • Mine rescue team training credit extended through 2021
  • Classification of certain race horses as 3-year property extended through 2022
  • 7-year accelerated depreciation for business property on Indian reservations extended through 2021
  • Expensing rules for certain productions extended through 2025
  • Empowerment zone tax incentives extended through 2025
  • American Samoa economic development credit extended through 2022

• Energy production and efficiency:
  • Biodiesel and renewable diesel credit remains extended through 2022
  • Second generation biofuel producer credit extended through 2022
  • Nonbusiness energy property incentives extended through 2021
  • Qualified fuel cell motor vehicles credit extended through 2021
  • Alternative fuel refueling property credit extended through 2021
  • 2-wheeled plug-in electric vehicle credit extended through 2022
  • Renewable electricity credit extended through 2021
  • Production credit for Indian coal facilities extended to 16-year period
  • Oil spill liability trust fund rate extended through 2025
  • Excise tax credits relating to alternative fuels extended through 2021
  • Energy efficient homes credit extended through 2021
  • Second generation biofuel plant property allowance remains extended through 2021
  • Energy efficient commercial building deduction made permanent
  • Electricity produced from certain renewable resources credit extended through 2022

For details, you may review the Consolidated Appropriations Act, 2021 on the U.S. Congress website.