17 December 2019 Year-end tax extenders package released A tax package being attached to one of two year-end appropriations bills was released early December 17 and would extend through 2020 many of the tax extender provisions that expired in 2017 and 2018, and that are expiring in 2019. Biodiesel incentives would be extended longer, through 2022, as would a short-line railroad provision. The package, the Taxpayer Certainty and Disaster Tax Relief Act of 2019, is considered as part of the Further Consolidated Appropriations Act, 2020, the base text of which was released the afternoon of December 16 and includes the SECURE Act retirement measure and repeal of Affordable Care Act taxes. The appropriations bill is expected to receive a House vote and be considered by the Senate this week. The tax provisions are included in a manager's amendment released after a long recess of the Rules Committee's nighttime hearing on terms for consideration of the spending bill to allow for continuation of tax negotiations, which had intensified in recent days after appropriators last week announced an agreement on moving forward with funding the government through the end of fiscal year 2020. Those late-stage tax negotiations did not yield agreement on matters that included expansions of credits for lower-income individuals and electric vehicles, and a TCJA fix for qualified improvement property (QIP). Provisions that expired at the end of 2018 that would be extended under the package include the 7.5% deduction floor for medical expenses, the oil spill liability trust fund rate, and the black lung liability trust fund excise tax. Provisions expiring at the end of 2019 that would be extended, through 2020, under the package include the controlled foreign corporation (CFC) look-through rule, the Work Opportunity Tax Credit, and the New Markets Tax Credit. Certain provisions related to beer, wine, and distilled spirits excise taxes would also be extended. The package would repeal the requirement that the unrelated business taxation income (UBTI) of tax-exempt organizations be increased by expenses related to qualified transportation fringe benefits (the so-called "church parking tax"). The package would also provide tax relief for individuals and businesses in Presidentially-declared disaster areas occurring between January 1, 2018, and for a period following date of enactment of the legislation. It would also change the private foundation excise tax to a simplified tax of 1.39%.
Document ID: 2019-2222 | |||||
