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2020 Tax Extenders

The spending bill, known as the Further Consolidated Appropriations Act, 2020 (H.R. 1865), passed Congress and was signed by the President. It includes over 40 "tax extenders" although some are a bit obscure  The tax extenders all have effective dates that could affect 2018 income tax returns that have already been filed.  Below is a list.

Tax Relief and Support for Families and Individuals

  • Exclusion from gross income of discharge of qualified principal residence indebtedness
  • Treatment of mortgage insurance premiums as qualified residence interest
  • Reduction in medical expense deduction floor
  • Deduction of qualified tuition and related expenses
  • Black lung disability trust fund excise tax

Incentives for Employment, Economic Growth, and Community Development

  • Indian employment credit
  • Railroad track maintenance credit
  • Mine rescue team training credit
  • Classification of certain race horses as 3-year property
  • 7-year recovery period for motorsports entertainment complexes
  • Accelerated depreciation for business property on Indian reservations
  • Expensing rules for certain productions
  • Empowerment zone tax incentives
  • American Samoa economic development credit

Incentives for Energy Production, Efficiency, and Green Economy Jobs

  • Biodiesel and renewable diesel
  • Second generation biofuel producer credit
  • Nonbusiness energy property
  • Qualified fuel cell motor vehicles
  • Alternative fuel refueling property credit
  • 2-wheeled plug-in electric vehicle credit
  • Credit for electricity produced from certain renewable resources
  • Production credit for Indian coal facilities
  • Energy efficient homes credit
  • Special allowance for second generation biofuel plant property
  • Energy efficient commercial buildings deduction
  • Special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities
  • Extension and clarification of excise tax credits relating to alternative fuels
  • Oil spill liability trust fund rate

Certain Provisions Expiring at the End of 2019

  • New markets tax credit
  • Employer credit for paid family and medical leave
  • Work opportunity credit
  • Certain provisions related to beer, wine, and distilled spirits
  • Look-thru rule for related controlled foreign corporations
  • Credit for health insurance costs of eligible individuals

Disaster Tax Relief

  • Special disaster-related rules for use of retirement funds
  • Employee retention credit for employers affected by qualified disasters
  • Other disaster-related tax relief provisions
  • Automatic extension of filing deadlines in case of certain taxpayers affected by Federally declared disasters
  • Modification of the tax rate for the excise tax on investment income of private foundations
  • Additional low-income housing credit allocations for qualified 2017 and 2018 California disaster areas
  • Treatment of certain possessions

Other Provisions

  • Modification of income for purposes of determining tax-exempt status of certain mutual or cooperative telephone or electric companies
  • Repeal of increase in unrelated business taxable income for certain fringe benefit expenses