The Consolidated Appropriations Act of 2016, enacted Dec. 18, 2015, extends a long list of expired tax provisions into the future. Unlike in past extension legislations, Congress extended many provisions permanently. The Joint Committee on Taxation estimates that the total cost of the tax provisions in the bill will be $622 billion over 10 years. Without Congress extending these various provisions, millions of Americans were in danger of losing these beneficial tax breaks by 2017.
Energy tax incentives: Provisions for energy expenses extended through 2016 include:
- § 25C, which provides a 10% credit for qualified nonbusiness energy property. The law also updates the Energy Star requirements.
- § 30B, which provides a credit for qualified fuel cell motor vehicles.
- § 30C, which provides a 30% credit for the cost of alternative (non-hydrogen) fuel vehicle refueling property.
- The § 30D 10% credit for plug-in electric motorcycles and two-wheeled vehicles.
- § 40(b)(6), which provides a credit for each gallon of qualified second-generation biofuel produced.
- The § 40A credit for biodiesel and renewable diesel, which includes the biodiesel mixture credit, the biodiesel credit, and the small agri-biodiesel producer credit. The
- § 45(e)(10)(A)(i) production credit for Indian coal facilities.
- The § 45 credits for facilities producing energy from certain renewable resources.
- § 45L, which provides a credit for each qualified new energy-efficient home constructed by an eligible contractor and acquired by a person from the eligible contractor for use as a residence during the tax year.
- § 168(l), which provides a depreciation allowance equal to 50% of the adjusted basis of qualified second-generation biofuel plant property.
- The § 179D deduction for energy-efficient commercial buildings.
- The § 451(i) special rule for sales or dispositions to implement Federal Energy Regulatory Commission or state electric restructuring policy for qualified electric utilities.
- The §§ 6426(c) and 6427(e) excise tax credits for alternative fuels.
If you have a question based upon the implication of one of the tax provisions now extended by Congress going forward in 2016 and beyond, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation, call 212-490-0704.
