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The Big List of Expiring Tax Provisions

By December 27, 2012No Comments

There are two things in life that are certain: Death and the headaches we’ll all get when we have to figure out our taxes.  Especially when the Joint Committee of Taxation has provided a list of over 60 tax provisions taken off the boards in 2011, and 41 more that will go away this year.  You can find the complete document here.

What you may have been able to count on last year, but won’t be able to this year, includes (and this list isn’t even close to comprehensive):

  • First-time homebuyer credit for individuals on qualified official extended duty outside the United States
  • Credit for certain nonbusiness energy property
  • Personal tax credits allowed against regular tax and alternative minimum tax (“AMT”)
  • Credit for electric drive motorcycles, three-wheeled vehicles, and low-speed vehicles
  • Conversion credit for plug-in electricvehicles
  • Expansion of adoption credit and adoption assistance programs
  • Incentives for alcohol fuels.
  • Incentives for biodiesel and renewablediesel.
  • Tax credit for research and experimentation expenses
  • Indian employment tax credit
  • New markets tax credit
  • Credit for construction of new energy efficient homes
  • Credit for energy efficient appliances
  • Employer wage credit for activated military reservists
  • Grants for specified energy property in lieu of tax credits
  • Work opportunity tax credit
  • Deduction for certain expenses of elementary and secondary school teachers
  • Treatment of military basic housing allowances under low-income housing credit
  • Deduction of state and local general sales taxes

As you can see, the list just goes on and on (and on and on…)

What makes this a bit more difficult is that some of these provisions are apparently slated for retroactive extension, including the tax credit for R&D expense and the new markets tax credit.

This is just the tip of a very big iceberg; the list above only covers a fraction of those expiring tax provisions from 2011.  Then there’s the upcoming tax provisions set to expire on December 31st of this year.  (You may have heard of this; something about a “fiscal cliff,” or something?)

To help you navigate your way through this thorny mess, or for any of your financial needs, feel free to contact us.

First-time homebuyer credit for individualson qualified official extended duty outsidethe United States (sec. 36(h)(3))4/30/11
Federal Unemployment Tax Act (“FUTA”)surtax of 0.2 percent (sec. 3301(1))6/30/113.
Credit for certain nonbusiness energy property (sec. 25C(g))12/31/114.
Personal tax credits allowed against regular tax and alternative minimum tax (“AMT”)(sec. 26(a)(2))12/31/115.
Credit for electric drive motorcycles, three-wheeled vehicles, and low-speed vehicles(sec. 30(f))12/31/116.
Conversion credit for plug-in electricvehicles (sec. 30B(i)(4))12/31/117.
Alternative fuel vehicle refueling property(non-hydrogen refueling property)(sec. 30C(g)(2))12/31/11
Not including temporary disaster relief Federal tax provisions, which are listed in Part II.
In the case of a written binding contract entered into before May 1, 2011, to close on the purchase of a principal residence before July 1, 2011, the purchase must close before July 1, 2011.
The related provision of section 30C  for hydrogen refueling property expires December 31, 2014.
Provision (Code section)  Expiration Date
Expansion of adoption credit and adoptionassistance programs (secs. 36C and 137and sec. 10909(c) of Pub. L. No. 111-148as amended by section 101(b) of Pub. L. No. 111-312)12/31/119.
Incentives for alcohol fuelsa.
Alcohol fuels income tax credit(alcohol fuel, alcohol used to produce aqualified mixture, and small ethanol producers) (secs. 40(e)(1)(A), (h)(1),and (h)(2)) b.
Alcohol fuel mixture excise tax creditand outlay payments (secs. 6426(b)(6)and 6427(e)(6)(A))12/31/1112/31/1110.
Incentives for biodiesel and renewablediesel:a.
Income tax credits for biodiesel fuel, biodiesel used to produce a qualifiedmixture, and small agri-biodiesel producers (sec. 40A) b.
Income tax credits for renewable dieselfuel and renewable diesel used to produce a qualified mixture (sec. 40A)c.
Excise tax credits and outlay paymentsfor biodiesel fuel mixtures(secs. 6426(c)(6) and 6427(e)(6)(B))d.
Excise tax credits and outlay paymentsfor renewable diesel fuel mixtures(secs. 6426(c)(6) and 6427(e)(6)(B))12/31/1112/31/1112/31/1112/31/1111.
Tax credit for research and experimentationexpenses (sec. 41(h)(1)(B))12/31/11
Provision (Code section)  Expiration Date
Placed-in-service date for facilities eligibleto claim the refined coal production credit(other than refined coal facilities that produce steel industry fuel) (sec. 45(d)(8))12/31/1113.
Indian employment tax credit (sec. 45A(f))  12/31/1114.
 New markets tax credit (sec. 45D(f)(1))  12/31/1115.
Credit for certain expenditures for maintaining railroad tracks (sec. 45G(f))12/31/1116.
Credit for construction of new energyefficient homes (sec. 45L(g))12/31/1117.
Credit for energy efficient appliances(sec. 45M(b))12/31/1118.
Mine rescue team training credit (sec. 45N)  12/31/1119.
Employer wage credit for activated militaryreservists (sec. 45P)12/31/1120.
Grants for specified energy property in lieuof tax credits (sec. 48(d) and sec. 16 03 of Pub. L. No. 111-5)12/31/1121.
Work opportunity tax credit (sec. 51(c)(4))  12/31/11
Qualified zone academy bonds: allocationof bond limitation (sec. 54E(c)(1))12/31/11
The work opportunity tax credit  targeted to hiring qualified veterans  expires December 31, 2012.