Tax Extender Act of 2017 – Extension of Tax Credits

On February 7, 2018 the 115th Congress passed the Tax Extender Act of 2017. This Act addresses temporary or scheduled to expire tax breaks at the end of 2016 or 2017. All of these temporary or scheduled to expire tax breaks are referred to as “Tax Extenders” because Congress will review all or most of them to extend for the benefit of taxpayers. Congress enacts temporary tax provisions (usually a tax credit or deduction) to address a temporary need such as floods in Texas or Hurricanes in Florida. Some of these temporary benefits prove to be so beneficial to the economy they are made permanent. The enacted tax credits or deductions are scheduled to expire on a certain date, this is known as a “sunset”. Therefore, the Tax Extender Act of 2017 extended or made permanent tax deductions or credits that expire or “sunset” in 2016 or 2017.

Hooray for Tax Extender Bill!

The following are some of the Tax Extenders that have been extended:

  • Exclusion from gross income the discharge of qualified principal residence through 2017
  • Mortgage insurance treated as qualified residence interest through 2017 with limits
  • Deduction for qualified tuition and related expenses through 2017 with limits
  • Classification of race horses as 3-year property placed in service during 2017
  • 7-year depreciation for motorsports entertainment complexes placed in service during 2017
  • Extension of special expensing rules for certain film, television and theatrical productions through 2017 with limits
  • Extension of empowerment zone tax incentives through 2017
  • Extension of credit for nonbusiness energy property through 2017
  • Extension and modification of credit for residential energy property with limits
  • Extension of credit for new qualified fuel cell motor vehicles through 2017
  • Extension of credit for alternative fuel vehicle refueling property through 2017
  • Extension of credit for 2-wheeled plug-in electric vehicle through 2017
  • Extension of credit for energy-efficient new homes through 2017
  • Extension and phaseout of energy credit through 2022 with limits
  • Extension of energy efficient commercial buildings deduction through 2017
  • Individuals held harmless on improper levy on retirement plan
  • Modifications of user fee requirements for installment agreements
  • After 2017 attorney fees relating to awards to whistleblowers are deductible above the line
  • Modification of rules governing hardship distributions from retirement account
  • Tax home of certain citizens of the USA living abroad


These are some of the Tax Extenders that are applicable to many taxpayers. It is exciting to see that Congress is committed to preserving electric and biofuel motor vehicle credits. In this day with many taxpayers owning vehicles it is important to reduce all of our carbon foot prints in any way we can, to get a tax credit for doing so is a bonus!

Posted by Terranova & Associates LLC in Credit, deduction, Tax Tips, taxdeductions, 0 comments