Expired and Expiring Tax Provisions (“Tax Extenders”): CRS Resources

Some Members of Congress have expressed interest in extending temporary tax provisions that expired at the end of 2017 and 2018, and possibly extending provisions scheduled to expire at the end of 2019. Collectively, temporary tax provisions that are regularly extended as a group by Congress, rather than being allowed to expire as scheduled, are often referred to as “tax extenders.”

Temporary tax provisions were most recently extended in the Bipartisan Budget Act of 2018 (BBA18; P.L. 115-123). BBA18 extended nearly all of the provisions that had expired at the end of 2016, with most provisions extended through the end of 2017. For more information on the “tax extenders” concept as well as additional information on provisions that expired at the end of 2017, see CRS Report R45347, Tax Provisions That Expired in 2017 (“Tax Extenders”), by Molly F. Sherlock.

This report highlights CRS resources that provide background information on recently expired and soon-to-expire tax provisions. Table 1 lists temporary tax provisions that expired in 2017, and provides information on CRS reports and other products related to each provision. Table 2 provides the same information for temporary tax provisions that expired in 2018, while Table 3 provides this information for provisions that are scheduled to expire at the end of 2019. These tables also indicate whether each provision would be extended by the Tax Extender and Disaster Relief Act of 2019 (S. 617) or the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (H.R. 3301)—“tax extender” bills pending, respectively, in the Senate and House.

Expired and Expiring Tax Provisions ("Tax Extenders"): CRS Resources

October 16, 2019 (R45967)

Some Members of Congress have expressed interest in extending temporary tax provisions that expired at the end of 2017 and 2018, and possibly extending provisions scheduled to expire at the end of 2019. Collectively, temporary tax provisions that are regularly extended as a group by Congress, rather than being allowed to expire as scheduled, are often referred to as "tax extenders."

Temporary tax provisions were most recently extended in the Bipartisan Budget Act of 2018 (BBA18; P.L. 115-123). BBA18 extended nearly all of the provisions that had expired at the end of 2016, with most provisions extended through the end of 2017. For more information on the "tax extenders" concept as well as additional information on provisions that expired at the end of 2017, see CRS Report R45347, Tax Provisions That Expired in 2017 ("Tax Extenders"), by Molly F. Sherlock.

CRS Resources

This report highlights CRS resources that provide background information on recently expired and soon-to-expire tax provisions. Table 1 lists temporary tax provisions that expired in 2017, and provides information on CRS reports and other products related to each provision.1 Table 2 provides the same information for temporary tax provisions that expired in 2018, while Table 3 provides this information for provisions that are scheduled to expire at the end of 2019. These tables also indicate whether each provision would be extended by the Tax Extender and Disaster Relief Act of 2019 (S. 617) or the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (H.R. 3301)—"tax extender" bills pending, respectively, in the Senate and House.

Table 1. Temporary Tax Provisions That Expired in 2017

Provision

CRS Resources

Extended in S. 617

Extended in H.R. 3301

Credit for certain nonbusiness energy property (IRC § 25C)

Extends through 2019

Extends through 2020

Credit for qualified fuel cell motor vehicles (IRC § 30B)

Extends through 2019

Extends through 2020

Credit for alternative fuel vehicle refueling property (IRC § 30C)

Extends through 2019

Extends through 2020

Credit for two-wheeled plug-in electric vehicles (IRC § 30D)

Extends through 2019

Extends through 2020

Second-generation biofuel producer credit (IRC § 40(b)(6))

Extends through 2019

Extends through 2020

Incentives for biodiesel and renewable diesel (IRC §§ 40A, 6426(c)(6), and 6427(e)(6)(B))

Extends through 2019

Extends through 2020

Beginning-of-construction date for non-wind renewable power facilities eligible to claim the electricity production credit or investment credit in lieu of the production credit (IRC §§ 45 and 48(a)(5))a

Extends through 2019

Extends through 2020

Credit for production of Indian coal (IRC § 45(e)(10))

Extends through 2019

Nob

Indian employment credit (IRC § 45A)

Extends through 2019

Extends through 2020

Railroad track maintenance credit (IRC § 45G)

Extends through 2019

Extends through 2020

Credit for construction of new energy-efficient homes (IRC § 45L)

Extends through 2019

Extends through 2020

Mine rescue team training credit (IRC § 45N)

Extends through 2019

Extends through 2020

Exclusion from gross income of discharge of indebtedness on principal residence (IRC § 108(a)(1)(E))

Extends through 2019

Extends through 2020

Treatment of premiums for certain qualified mortgage insurance as qualified residence interest (IRC § 163(h)(3)(E))

Extends through 2019

Extends through 2020

Three-year recovery period for racehorses two years old or younger (IRC § 168(e)(3)(A))

Extends through 2019

No

Seven-year recovery period for motorsports entertainment complexes (IRC §§ 168(e)(3)(C)(ii) and (i)(15))

Extends through 2019

Extends through 2020

Accelerated depreciation for business property on an Indian reservation (IRC § 168(j)(9))

Extends through 2019

Extends through 2020

Special depreciation allowance for second-generation biofuel plant property (IRC § 168(l))

Extends through 2019

Extends through 2020

Energy-efficient commercial buildings deduction (IRC § 179D)

Extends through 2019

Extends through 2020

Election to expense advanced mine safety equipment (IRC § 179E)

Extends through 2019

No

Special expensing rules for certain film, television, and live theatrical productions (IRC § 181)c

Extends through 2019

Extends through 2020

Deduction for qualified tuition and related expenses (IRC § 222)

Extends through 2019

Extends through 2020

Special rule for sales or dispositions by a qualified electric utility to implement Federal Energy Regulatory Commission ("FERC") or State electric restructuring policy (IRC § 451(k))

Extends through 2019

Extends through 2020

Empowerment zone tax incentives (IRC §§ 1391, 1394, 1396, 1397A, and 1397B)d

Extends through 2019

Extends through 2020

Excise tax credits for alternative fuel and alternative fuel mixtures (IRC §§ 6426 and 6427)

Extends through 2019

Extends through 2020

American Samoa economic development credit (§ 119 of the Tax Relief and Health Care Act of 2006 (P.L. 109-432), as amended)

Extends through 2019

Extends through 2020

Source: Joint Committee on Taxation (JCT), List of Expiring Federal Tax Provisions, JCX-2-19, January 18, 2019, https://www.jct.gov/publications.html?func=startdown&id=5157; and Congress.gov.

Notes: Listings for a "Tax Expenditure Compendium entry" refer to the U.S. Congress, Senate Committee on the Budget, Tax Expenditures: Compendium of Background Material on Individual Provisions, committee print, prepared by Congressional Research Service, 115th Cong., 2nd sess., December 2018, S.Prt. 115-28. Proposed extensions would be retroactive. Thus, taxpayers may be able to amend 2018 tax returns to claim tax benefits that had not previously been available.

a. The PTC for wind facilities expires at the end of 2019, although the credit rate began to phase down starting in 2017.

b. During the House Ways and Means Committee markup Representative Doggett offered an amendment, which was passed by voice vote, to strike the production credit for Indian coal facilities.

c. Qualified film, television, and live theatrical productions are eligible for the additional first-year depreciation allowance under § 168(k) if (1) acquired and placed in service after September 27, 2017, and before January 1, 2027; and (2) a deduction otherwise would have been allowable under § 181 without regard to the dollar limitation or termination of that section. See IRC § 168(k)(2)(A)(i)(IV) and (V).

d. The empowerment zone tax incentives may have expired earlier than December 31, 2017, if a state or local government provided an expiration date in the nomination of an empowerment zone, or the appropriate Secretary revoked an empowerment zone's designation. The state or local government may, however, amend the nomination to provide a new termination date.

Table 2. Temporary Tax Provisions That Expired in 2018

Provision

CRS Resources

Extended in S. 617

Extended in H.R. 3301

Medical expense deduction: adjusted gross income (AGI) floor 7.5% (IRC § 213(f))

Extends through 2019

Extends through 2020

Black Lung Disability Trust Fund: increase in amount of excise tax on coal (IRC § 4121)

Extends through 2019

Extends through 2020

Oil Spill Liability Trust Fund financing rate (IRC § 4611)

Extends through 2019

Extends through 2020

Source: Joint Committee on Taxation (JCT), List of Expiring Federal Tax Provisions, JCX-2-19, January 18, 2019, https://www.jct.gov/publications.html?func=startdown&id=5157; and Congress.gov.

Notes: Listings for a "Tax Expenditure Compendium entry" refer to the U.S. Congress, Senate Committee on the Budget, Tax Expenditures: Compendium of Background Material on Individual Provisions, committee print, prepared by Congressional Research Service, 115th Cong., 2nd sess., December 2018, S.Prt. 115-28.

Table 3. Temporary Tax Provisions Expiring in 2019

Provision

CRS Resources

Extended in S. 617?

Extended in H.R. 3301?

Credit for health insurance costs of eligible individuals (IRC § 35)

No

Extends through 2020

Beginning-of-construction date for wind-renewable power facilities eligible to claim the electricity production credit or investment credit in lieu of the production credit (IRC § 45 and 48(a)(5))

No

Extends through 2020a

New markets tax credit (IRC § 45D)b

No

Extends through 2020

Employer credit for paid family and medical leave (IRC § 45S)

No

Extends through 2020

Work opportunity credit (IRC § 51)

No

Extends through 2020

Look-through treatment of payments between related controlled foreign corporations under the foreign personal holding company rules (IRC § 954(c)(6)(C))

No

Extends through 2020

Specified health insurance policy fee (IRC § 4375)

No

No

Self-insured health plan fee (IRC § 4376)

No

No

Provisions modifying the rates of taxation of beer, wine, and distilled spirits, and certain other rules (IRC §§ 263A, 5001, 5041, 5051, 5212, and 5414)

No

Extends through 2020

Source: Joint Committee on Taxation (JCT), List of Expiring Federal Tax Provisions, JCX-2-19, January 18, 2019, https://www.jct.gov/publications.html?func=startdown&id=5157; and Congress.gov.

Notes: Listings for a "Tax Expenditure Compendium entry" refer to the U.S. Congress, Senate Committee on the Budget, Tax Expenditures: Compendium of Background Material on Individual Provisions, committee print, prepared by Congressional Research Service, 115th Cong., 2nd sess., December 2018, S.Prt. 115-28.

a. The credit would be extended at the 2019 reduced rate, which is a 60% reduction from the full value of the credit.

b. Subject to a carryover. No amount may be carried to any calendar year after 2024 (IRC § 45D(f)(3)). H.R. 3301 would also extend the carryover to 2025.

Other Resources

There are other resources that might be useful when considering the issue of "tax extenders" or "tax extenders" legislation. These include the following:

Author Contact Information

Jennifer Teefy, Senior Research Librarian ([email address scrubbed], [phone number scrubbed])
Molly F. Sherlock, Specialist in Public Finance ([email address scrubbed], [phone number scrubbed])

Footnotes

1.

The Joint Committee on Taxation (JCT) maintains a list of recently expired and expiring tax provisions. See Joint Committee on Taxation, List of Expiring Federal Tax Provisions 2017-2027 (JCX-2-19), January 18, 2019.