Thursday 02/15/2018

Bipartisan Budget Act of 2018

On February 9, Congress passed the “Bipartisan Budget Act of 2018.” In addition to a plan to fund the federal government through March 23, the act contains a host of tax law changes.

Included in the act were the following extenders that were previously set to sunset after 2016:

The following INDIVIDUAL provisions were extended for ONE year:

  • Discharge of indebtedness from principal residence
  • Treatment of mortgage insurance premiums (PMI) as deductible qualified residence interest
  • Above the line deduction for qualified tuition and related expenses

The following BUSINESS provisions were extended for ONE year:

  • 3 year depreciation for race horses 2 years or younger
  • 7 year recovery period for Motorsports entertainment complexes

The following ENERGY provisions were extended for ONE year:

  • Non business energy $500 credit
  • Qualified fuel cell motor vehicle credit
  • Credit for 2-wheeled plug in electric vehicles
  • 179D – energy efficient commercial building deduction
  • Credit for construction of new energy efficient homes

What do these tax law changes mean to you? How will these changes affect your business? Reach out to Eric, the leader of our tax department, with your questions!

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