Tax Extender Provisions in the Bipartisan Budget Act of 2018

The BBA extends a number of previously expired provisions for business entities and many energy tax incentive programs.

BUSINESS EXTENDER PROVISIONS

The Bipartisan Budget Act (BBA) extended the following business provisions for one year (except as noted):

  • Indian employment tax credit
  • Railroad track maintenance credit
  • Mine rescue team training credit
  • Three-year depreciation for race horses two years old or younger
  • Seven-year recovery period for motorsports entertainment complexes
  • Accelerated depreciation for business property on an Indian reservation
  • Election to expense advanced mine safety equipment
  • Expensing rules for certain film, television, and live theatrical productions
  • Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico
  • The alternative 23.8% maximum tax rate for qualified timber gains of C corporations
  • Empowerment zone tax incentives
  • American Samoa economic development credit
  • Temporary increase in limit on cover over of rum excise tax revenues (form $10.50 to $13.25 per proof galloon) to Puerto Rico and the Virgin Islands, extended for five years.

ENERGY EXTENDER PROVISIONS

The BBA extended the following energy provisions for one year (except as noted):

  • Credit for certain nonbusiness energy property
  • Credit for residential energy property (as modified)
  • Qualified fuel cell motor vehicle credit
  • Alternative fuel vehicle refueling property credit
  • Credit for 2-wheeled plug-in electric vehicles
  • Second generation biofuel producer credit
  • Income tax credits for biodiesel fuel, biodiesel used to produce a qualified mixture, small agri-biodiesel producers, renewable diesel fuel and renewable diesel used to produce a qualified mixture
  • Credit for production of Indian coal
  • Beginning-of-construction date for nonwind renewable power facilities eligible to claim the electricity production credit or investment credit in lieu of the production credit
  • Credit for construction of new energy efficient homes
  • Five- year extension and phaseout of energy investment credits
  • Special depreciation allowance for second generation biofuel plant property
  • Energy efficient commercial buildings deduction
  • Extension of special rule for sales or dispositions to implement Federal Energy Regulatory Commission or State electric restructuring policy for qualified electric utilities
  • Extension of excise tax credits and outlay payments for alternative fuel, and excise tax credits for alternative fuel mixture
  • Extension of Oil Spill Liability Trust Fund financing rate

Other non-extender energy provisions in the BBA include modification of the credit for production from advanced nuclear power facilities and the enhancement of the carbon dioxide sequestration credit. If you have any questions about the BBA and its impact on you, please contact your tax professional at Isdaner & Company at 610.668.4200.