December 20, 2019

Congressional Holiday Gift: Certain Tax Credit Rules Extended

By Peter Downing, National Principal-in-Charge, Tax Credits & Incentives

Congressional Holiday Gift: Certain Tax Credit Rules Extended Tax & Business

On December 17, Congress passed a budget deal to keep the government open, and included in the bill was the Taxpayer Certainty and Disaster Tax Relief Act of 2019.” The Senate passed the legislation yesterday and President Trump will sign the $1.4T spending bill today.

The Act extends certain expiring provisions through the 2020 tax year, including:

  1. Discharge of qualified principal residence indebtedness from gross income.
  2. Mortgage insurance premiums treated as qualified residence interest.
  3. Reduction in medical expense floor.
  4. Deduction of qualified tuition and related expenses.
  5. Work Opportunity Tax Credit.
  6. New Market Tax Credit.
  7. Employer Credit for Paid Family & Medical Leave.
  8. Credit for health insurance for certain taxpayers.

The Act also extends through December 31, 2020, tax provisions that had previously expired on December 31, 2017, such as:

  1. Indian employment credit.
  2. Empowerment Zones.
  3. Disaster Tax Relief Tax Credits.
  4. Credit for Electricity produced from certain renewable resources.
  5. 179(d) Bonus Depreciation.
  6. Section 181 Film Incentives.
  7. Other miscellaneous credits.

In addition, the Act removes the Obamacare tax on medical devices and the high-cost “Cadillac” health insurance benefits.

For some taxpayers, these incentives will reduce 2019 tax liabilities, and in some instances, refund claims may be available for taxpayers in certain geographic areas.

For questions, please contact Peter Downing, national principal-in-charge, Tax Credits & Incentives, at peter.downing@marcumllp.com or (949) 236-5680.