As the 2014 tax season begins early this year millions of families and businesses alike faced an increase in taxes, but the 113th congress passing of H.R. 5771, Tax Increase Prevention Act of 2014 has extended many tax breaks previously set to expire. Title I: Certain Expiring Provisions- Amends the Internal Revenue Code to extend certain expiring tax provisions relating to individuals, businesses, and the energy sector.
A few of the tax extenders for individuals, business, and the energy sector follows: Subtitle A: Individual Tax Extenders – Extends through 2014:
- the tax deduction of expenses of elementary and secondary school teachers;
- the tax exclusion of imputed income from the discharge of indebtedness for a principal residence;
- the equalization of the tax exclusion for employer-provided commuter transit and parking benefits;
- the tax deduction of mortgage insurance premiums;
- the tax deduction of state and local general sales taxes in lieu of state and local income taxes;
Subtitle B: Business Tax Extenders – Extends through 2014:
- the tax credit for increasing research activities;
- the low-income housing tax credit rate for newly constructed non-federally subsidized buildings;
- the Indian employment tax credit;
- the new markets tax credit;
- the tax credit for qualified railroad track maintenance expenditures;
- the tax credit for mine rescue team training expenses;
Subtitle C: Energy Tax Extenders – Extends through 2014:
- the tax credit for residential energy efficiency improvements;
- the tax credit for second generation biofuel production;
- the income and excise tax credits for biodiesel and renewable diesel fuel mixtures;
- the tax credit for producing electricity using Indian coal facilities placed in service before 2009;
- the tax credit for producing electricity using wind, biomass, geothermal, landfill gas, trash, hydropower, and marine and hydrokinetic renewable energy facilities;
Subtitle D: Extenders Relating to Multi-employer Defined Benefit Pension Plans – Extends through 2015 the automatic extensions of amortization periods for multi-employer defined benefit pension plans and for multi-employer funding rules under the Pension Protection Act of 2006.
For a more detailed list of extenders, as well as technical corrections referred to as “deadwood” please visit www.jct.gov Should you have additional questions or require assistance with a tax issue please respond in the comment section or call 866-606-3570. You will be connected to a licensed tax professional who can assist you.