Congressional Spending Bill Includes Tax Extenders and Other Tax Provisions

December 19, 2019

On December 17, 2019, the U.S. House passed FY 2020 funding legislation that includes the extension of several expired or expiring tax provisions, modifications to certain provisions of the 2017 tax reform act, and the repeal of three provisions of the Affordable Care Act (the ACA).  The Senate is expected to vote on this on or before Friday, December 20 (before the current temporary funding legislation expires).  President Trump is expected to sign the bill to avoid a government shutdown.

The expired or expiring provisions that would be extended by the law include:

  • 179D energy-efficient commercial buildings deduction (which expired at the end of 2017 and is reinstated for tax years 2018, 2019, and 2020)
  • New markets tax credit
  • Work opportunity tax credit
  • Employer credit for paid family and medical leave
  • Credit for health insurance costs for certain individuals
  • Provisions related to beer, wine, and distilled beverages
  • The medical expense deduction threshold or 7.5% is extended
  • 25C nonbusiness energy credit
  • 30B qualified fuel cell motor vehicle credit
  • 30D two-wheeled plug-in electric vehicle credit
  • And many more

Many of these provisions expired at the end of 2017.  Most are extended retroactively through 2020.

The new law also modifies the 2017 tax reform act by providing a “Gold Star Family” tax relief measure modifying a “kiddie tax” provision.  It also repeals the “church parking tax” on certain non-profits.

The law repeals the so-called “Cadillac” tax on high-cost health insurance plans imposed by the ACA as well as a medical device excise tax and a health insurance tax (scheduled to take effect after 2020.

Be sure to reach out to us if any of these provisions affect you or you have questions regarding the new tax laws

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