Congress approved this month some last-minute tax law changes to extend some expired provisions into the 2017 tax year. The Bipartisan Budget Act of 2018 extends some tax provisions that expired at the end of 2016. It is commonly referred to as an “extender” bill because it extends expired provisions through the 2017 tax year.
Below is a brief snapshot of some of the provisions included in the bill:
- Exclusion for discharge of debt on a principal residence;
- Treat mortgage insurance premiums as deductible qualified residence interest;
- Deduction for qualified tuition and related expense;
- Ten percent credit for non-business energy property;
- Credit for residential energy property for qualified fuel cell property, small wind energy property, and geothermal heat pump property (it will remain available for qualified solar electric property and solar water heating property). This credit was extended through 2021;
- Credit for construction of new energy-efficient homes by an eligible contractor and acquired by a person from the eligible contractor for use as a residence during the tax year;
- Five year extension and phaseout of energy investment credits;
- Deduction for energy efficient commercial buildings; and
- Empowerment zone tax incentives for employers have been extended for another year.
This extender bill was passed and signed into law Feb. 9, so as more information emerges, we will be sure to keep you apprised. In the meantime, if you have already filed your 2017 taxes this year, contact us and we can help you determine if any amendments need to be made.