By John T. Murray, CPA, Tax Partner
Congress Approves Year-End Tax Deal Renewing Expired Tax Breaks Through 2020
A tax package that renews expired incentives for individuals, businesses, health care, and other policies was passed by the House and Senate in an attempt to avoid a partial government shutdown. Congress approved a year-end tax deal which includes extensions of a group of tax provisions, known as tax extenders, through 2020 and the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (the “Disaster Act”).
The deal allows an extension of many expired tax provisions. Among the extended provisions through 2020 are:
1. alternative fuel refueling property credit
The new legislation would retroactively renew the alternative fuel refueling property credit for all property placed in service after December 31, 2017 and run through December 31, 2020. It also retroactively extends and clarifies excise tax credits relating to alternative fuels sold or used after December 31, 2017.
2. Biodiesel and renewable diesel credits
Biodiesel and renewable diesel credits will be extended through December 31, 2022 for all fuel used or sold after December 31, 2017.
3. Increase in unrelated business taxable income by disallowed fringe benefits
The tax bill would also repeal the increase in unrelated business taxable income for certain fringe benefit expenses by eliminating paragraph (7) of Section 512(a).
4. Medical Expense Deduction
The medical expense adjusted gross income deduction floor of 7.5% would be extended for taxable years beginning before January 1, 2021.
Our team will continue to monitor the tax extenders deal and keep you informed of additional updates or changes. If you have questions on this or other tax matters, please contact us. We are here to help. | 804.747.0000
Additional Tax Resources
- IRA and Retirement Plan Changes in the 2019 Budget Act
- Individual tax provisions extended by the Taxpayer Certainty and Disaster Relief Act
- Tax Residency of Estates and Trusts
- New IRS Form to Report Nonemployee Compensation
- IRS Tax Withholding Estimator: Three Shortcomings to Be Aware Of
- Keiter Blog
About the Author
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.