02/13/2018

Bipartisan Budget Act of 2018

Bipartisan Budget Act of 2018

On February 9, 2018, the President signed into law H.R. 1892, the Bipartisan Budget Act of 2018, which extends federal funding for the government. The law also contains a number of tax provisions, including the extension of a number of provisions that had expired as of the end of 2016. These changes affect the preparation of 2017 tax returns.  This may delay filing of returns until the IRS and our software can be updated to reflect these changes.

Extension of Expiring Provisions

A number of tax provisions expired on December 31, 2016 and  now expire on December 31, 2017:

• Cancellation of qualified principal residence indebtedness exclusion (IRC §108).

• Mortgage insurance premiums deduction (IRC §163).

• Tuition and fees deduction (IRC §222).

• Non business energy property credit (IRC §25C).

• Alternative motor vehicle credit for qualified fuel cell motor vehicles [IRC §30B(k)(1)].

• Alternative fuel vehicle refueling property credit (IRC §30C).

• Electric vehicle credit for highway-capable 2-wheeled vehicles (IRC §30D).

• Energy efficient home credit (IRC §45L).

• Energy efficient commercial building property deduction (IRC §179D).

Extensions beyond 2017. The following provisions are extended and modified as follows:

• The residential  energy efficient  property credit under IRC section  25D is extended through December 31, 2021 and includes qualified solar electric property expenditures, qualified solar water heating property expenditures, qualified fuel cell property expenditures, qualified small wind energy property expenditures, and qualified geothermal heat pump property expenditures.

• The energy credits and credit phase-outs under IRC section 48(a) are extended to periods ending before  January 1, 2022. This provision affects solar and thermal energy property, fiber-optic  solar property, qualified fuel cell property, qualified small wind energy property, qualified micro turbine property, and combined heat and power system property.

• The oil spill liability trust fund financing rate under IRC section 4611 is extended through December 31, 2018.

Amended returns. Taxpayers affected by these provisions who have already filed their 2017 tax return may file an amended return to take advantage of the extension of the expiration date of these provisions.

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