The Bipartisan Budget Act of 2018 was signed by President Trump on February 9, 2018. The two-year budget agreement contains 36 tax extenders that had expired at the end of tax year 2016 and made them retroactive to 2017. Many tax incentives for movie and TV production, motorsports and horse racing industries are included in this bill. For individual taxpayers, the above-the-line deduction for qualified tuition and related expenses, as well as the mortgage insurance premium, are also extended.
Here are the key tax provisions that had been extended through 2017:
- Cancellation of debt (COD) principal residence exclusion
- Mortgage insurance premium interest deduction
- Above-the-line deduction for qualified tuition and related expenses
- Non-business energy credit
- Alternative and biofuel fuel credits
- Section 45L credit for energy-efficient new homes
- Section 179D deduction for energy-efficient commercial building property
- Credit for electric vehicles
An expanded residential energy property credit (solar credit) under IRC §25D is extended through 2021. The bill also provides relief for California wildfire victims for early withdrawals from retirement plans, an expanded employee retention credit, and the elimination of various charitable contribution limits.
For more information and specifics about the various tax extenders included in the Bipartisan Budget Act, please contact our tax professionals at email@example.com or toll free at 844.4WINDES (844.494.6337).