Small Business Taxes & Management^TM--Copyright 2009, A/N Group, Inc.

Note last revision date at end of article.

Provisions Expiring in 2009

1. Temporary reduction in corporate rate for qualified timber gain (sec. 1201(b))

2. Mineral royalties treated as qualified REIT income for timber REITs (secs. 856(c)(2)(I) and 856(c)(8))

3. Sales by REITs of timber property held at least two years to qualified organizations for conservation purposes treated as sale of property held for investment or used in a trade or business (sec. 857(b)(6)(G) and (H) and former sec. 857(b)(6)(D))

4. Period to amend returns to reduce casualty losses later compensated by Federal relief grants, and limited relief from interest and penalties (sec. 3082 of P.L. 110-289)

5. Personal tax credits allowed against regular tax and alternative minimum tax ("AMT") (sec. 26(a)(2))

6. Alternative motor vehicle credit for qualified hybrid motor vehicles other than passenger automobiles and light trucks (sec. 30B(k)(3))

7 First time homebuyer credit (sec. 36(h))

8. Incentives for biodiesel and renewable diesel:

a. Income tax credits for biodiesel fuel, biodiesel used to produce a qualified mixture, and small agri-biodiesel producers (sec. 40A(g))

b. Income tax credits for renewable diesel fuel and renewable diesel used to produce a qualified mixture (sec. 40A(g))

c. Excise tax credits and outlay payments for biodiesel fuel mixtures (secs. 6426(c)(6) and 6427(e)(5)(B))

d. Excise tax credits and outlay payments for renewable diesel fuel mixtures (secs. 6426(c)(6) and 6427(e)(5)(B))

10. Increase in low-income housing credit volume cap (sec. 42(h)(3)(I))

11. Election to substitute grants to States for low-income housing projects for low-income housing credit allocation (sec. 42(i)(9) and sec. 1602 of Pub. L. No. 111-5)

12. Credit for electricity produced at open-loop biomass facilities placed in service before October 22, 2004 (sec. 45(b)(4)(B)(ii))

13. Placed-in-service date for facilities eligible to claim the refined coal production credit (sec. 45(d))

14. Indian employment tax credit (sec. 45A(f))

15. New markets tax credit (sec. 45D(f)(1))

16. Credit for construction of new energy efficient homes (sec. 45L(g))

17. Credit for certain expenditures for maintaining railroad tracks (sec. 45G(f))

18. Period for incurring qualified expenditures for purposes of credit for production of low sulfur diesel fuel for small refiners in compliance with EPA sulfur regulations for small refiners (sec. 45H(c)(4)) 19. Placed-in-service date for eligibility for tax credit for the production of coke or coke gas (sec. 45K(g)(1))

20. Mine rescue team training credit (sec. 45N)

21. Employer wage credit for activated military reservists (sec. 45P)

22. Issuance of clean renewable energy bonds (CREBs) (sec. 54M)

23. Increased AMT exemption amount (sec. 55(d)(1))

24. Deduction for certain expenses of elementary and secondary school teachers (sec. 62(a)(2)(D))

25. Additional standard deduction for state and local real property taxes (sec. 63(c)(7))

26. Exclusion of unemployment compensation benefits from gross income (sec. 85(c))

27. Suspension of applicable high-yield debt obligation rules for debt issued in an exchange or as a result of modification (sec. 163(e)(5))

28. Deduction of State and local general sales taxes (sec. 164(b)(5))

29. Deduction for State sales tax and excise tax on the purchase of motor vehicles (sec. 164(b)(6)(G))

30. Five-year depreciation for farming business machinery and equipment (sec. 168(e)(3)(B)(vii))

31. 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements (sec. 168(e)(3)(E)(iv), (v), and (ix))

32. Seven-year recovery period for motorsports entertainment complexes (sec. 168(i)(15))

33. Accelerated depreciation for business property on an Indian reservation (sec. 168(j)(8))

34. Additional first-year depreciation for 50 percent of basis of qualified property (sec. 168(k)(2))

35. Election to accelerate AMT and research credits in lieu of additional first-year depreciation (sec. 168(k)(4))

36. Encouragement of contributions of capital gain real property made for conservation purposes (secs. 170(b)(1)(E) and 170(b)(2)(B))

37. Enhanced charitable deduction for contributions of food inventory (sec. 170(e)(3)(C))

38. Enhanced charitable deduction for contributions of book inventories to public schools (sec. 170(e)(3)(D))

39. Enhanced deduction for corporate contributions of computer equipment for educational purposes (sec. 170(e)(6)(G))

40. Increase in expensing to $250,000/$800,000 (sec. 179(b)(7))

41. Election to expense advanced mine safety equipment (sec. 179E)

42. Expensing of capital costs incurred by small refiners for production of diesel fuel in compliance with EPA sulfur regulations for small refiners (sec. 179B(a))

43. Special expensing rules for certain film and television productions (sec. 181(f))

44. Expensing of "brownfields" environmental remediation costs (sec. 198(h))

45. Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico (sec. 199(d)(7))

46. Allowance of additional IRA contributions in certain bankruptcy cases (sec. 219(b)(5)(C))

47. Above-the-line deduction for qualified tuition and related expenses (sec. 222(e))

48. Waiver of minimum required distribution rules for IRAs and defined contribution plans (sec. 401(a)(9)(H))

49. Tax-free distributions from individual retirement plans for charitable purposes (sec. 408(d)(8))

50. Special rule for sales or dispositions to implement FERC or State electric restructuring policy (sec. 451(i))

51. Modification of tax treatment of certain payments to controlling exempt organizations (sec. 512(b)(13)(E)(iv))

52. Exclusion of gain or loss on sale or exchange of certain brownfield sites from unrelated business taxable income (sec. 512(b)(19)(K))

53. Suspension of 100 percent-of-net-income limitation on percentage depletion for oil and gas from marginal wells (sec. 613A(c)(6)(H))

54. Treatment of certain dividends and assets of regulated investment companies (secs. 871(k)(1)(C) and (2)(C), and 881(e)(1)(A) and 2))

55. RIC qualified investment entity treatment under FIRPTA (sec. 897(h)(4))

56. Exceptions under subpart F for active financing income (secs. 953(e)(10) and 954(h)(9))

57. Look-through treatment of payments between related controlled foreign corporations under the foreign personal holding company rules (sec. 954(c)(6))

58. Basis adjustment to stock of S corporations making charitable contributions of property (sec. 1367(a))

59. Empowerment zone tax incentives:

a. Increased exclusion of gain (attributable to periods before 1/1/15) on the sale of qualified business stock of an empowerment zone business (secs. 1202(a)(2)(C) and 1391(d)(1)(A)(i))

b. Empowerment zone tax-exempt bonds (secs. 1394 and 1391(d)(1)(A)(i))

c. Empowerment zone employment credit (secs. 1396 and 1391(d)(1)(A)(i))

d. Increased expensing under sec. 179 (secs. 1397A and 1391(d)(1)(A)(i))

e. Nonrecognition of gain on rollover of empowerment zone investments (secs. 1397B and 1391(d)(1)(A)(i))

a. Designation of D.C. enterprise zone, employment tax credit, and additional expensing (sec. 1400(f)(1))

b. Tax-exempt D.C. empowerment zone bonds (sec. 1400A(b))

c. Acquisition date for eligibility for zero-percent capital gains rate for investment in D.C. for gains through 12/31/14 (secs. 1400B(b)(2), (b)(3)(A), (b)(4)(A)(i), (b)(4)(B)(i)(I), (e)(2), and (g)(2))

d. Tax credit for first-time D.C. homebuyers (sec. 1400C(i))

a. Acquisition date for eligibility for zero-percent capital gains rate for investment in renewal communities for gains through 12/31/14 (secs. 1400F(b)(2)(A)(i), (3)(A), and (4)(A)(i), 1400F(c)(2), and 1400F(d))

b. Employment credit (secs. 1400H and 1391(d)(1)(A)(i))

c. Commercial revitalization deduction (sec. 1400I(g))

d. Increased expensing under sec. 179 (sec. 1400J(b)(1)(A))

63. FUTA surtax of 0.2 percent (sec. 3301(1))

65. Incentives for alternative fuel and alternative fuel mixtures (excluding liquefied hydrogen):

a. Excise tax credits and outlay payments for alternative fuel (secs. 6426(d)(5) and 6427(e)(6)(C))

b. Excise tax credits and outlay payments for alternative fuel mixtures (secs. 6426(e)(3) and 6427(e)(6)(C))

66. Reduced estimated tax payments for small businesses (sec. 6654(d)(1)(D))

67. Temporary increase in limit on cover over of rum excise tax revenues (from $10.50 to $13.25 per proof gallon) to Puerto Rico and the Virgin Islands (sec. 7652(f))

68. American Samoa economic development credit (sec. 119 of Pub. L. No. 109-432)

69. Use of single-employer defined benefit plan's prior-year adjusted funding target attainment percentage to determine application of limitation on benefit accruals (sec. 203 of Pub. L. No. 110-458)

70. Delay of designation of multiemployer plans as in endangered or critical status (sec. 204 0f Pub. L. No. 110-458)

71. Extension of funding improvement and rehabilitation periods for certain multiemployer pension plans (sec. 205 of Pub. L. No. 110-458)

72. Refundable credit for government retirees (sec. 2202 of Pub. L. No. 111-5)

Provisions Expiring in 2010

1. Provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (Pub. L. No. 107-16)

2. Reduced capital gain rates (secs. 1(h) and 1445(e)(6) and sec. 102 of Pub. L. No. 109-222)

3. Dividends taxed at capital gain rates (sec. 1(h) and sec. 102 of Pub. L. No. 109-222))

4. Refundable child credit floor amount (sec. 24(d))

5. American Opportunity Tax credit (sec. 25A(i))

6. Credit for certain nonbusiness energy property (sec. 25C(g))

7. Alternative motor vehicle credit for advanced lean burn technology motor vehicles and qualified hybrid motor vehicles that are passenger automobiles or light trucks (sec. 30B(k)(2))

8. Alternative motor vehicle credit for qualified alternative fuel vehicles (sec. 30B(k)(4))

9. Alternative fuel vehicle refueling property (non-hydrogen refueling property) (sec. 30C(g)(2))

10. Alternative fuel refueling property -- increase in credit rate and credit cap (sec. 30C(e)(6))

11. Earned income tax credit:

a. credit percentage of 45 percent for three or more qualifying children (sec. 32(b)(3)(A))

b. phaseout threshold for marriage penalty relief (sec. 32(b)(3)(B))

13. Making work pay credit (sec. 36A)

14. Incentives for alcohol fuels:

a. Alcohol fuels income tax credit (alcohol fuel, alcohol used to produce a qualified mixture, and small ethanol producers) (sec. 40(e)(1)(A), (h)(1), and (h)(2))

b. Alcohol fuel mixture excise tax credit and outlay payments (secs. 6426(b)(5) and 6427(e)(5)(A))

16. Grants for specified energy property in lieu of tax credits (sec. 48(d) and sec. 1603 of Pub. L. No. 111-5)

17. Election of investment credit in lieu of production tax credit (sec. 48(a)(5))

18. Work opportunity tax credit targeted group status for unemployed veterans and disconnected youth (sec. 51(d)(14))

19. Qualified zone academy bonds -- allocations of bond authority 4(sec. 54E(c)(1))

20. School construction bonds -- allocation of bond authority (sec.54F(c))

21. Authority to issue Build America Bonds (secs. 54AA(d)(1)(B) and 6431(a))

22. Modification of AMT limitations on tax-exempt bonds (secs. 57(a)(5)(C)(vi) and 56(g)(4)(B)(iv))

23. Deferral and ratable inclusion of income from business debt discharged by reacquisition (sec. 108(i))

24. Exclusion from income for benefits provided to volunteer firefighters and emergency medical responders (sec. 139B)

25. Parity for exclusion for employer-provided mass transit and parking benefits (sec. 132(f))

26. Qualified mortgage bonds for refinancing of subprime loans (143(k)(12))

27. Expansion of availability of industrial development bonds to facilities manufacturing intangible property (sec. 144(a)(12)(c))

28. Volume cap increase and set-aside for private activity bonds for housing (sec. 146(d))

29. Bonds guaranteed by Federal Home Loan banks eligible for treatment as tax-exempt bonds (sec. 149(b)(3)(a)(iv))

30. Premiums for mortgage insurance deductible as interest that is qualified residence interest (sec. 163(h)(3))

31. Five-year amortization of music and music copyrights (sec. 167(g)(8))

32. Natural gas distribution lines treated as 15-year property (sec. 168(e)(3)(E)(viii))

33. Increase in expensing to $125,000/500,000 (indexed) (sec. 179(b)(1) and (2), (c)(2), and (d)(1)(A)(ii))

34. Modification of small issuer exception to tax-exempt interest allocation rules for financial institutions (sec. 265(b)(3)(G))

35. De minimis safe harbor exception for tax-exempt interest expense of financial institutions (secs. 265(b)(7) and 291(e)(1)(B)(iv))

36. Computer technology and equipment allowed as a qualified higher education expense for section 529 accounts (sec. 529(e)(3)(A)(iii))

37. Alaska Native Settlement Trusts (sec. 646)

38. Special rules for qualified small business stock (sec. 1202(a)(3))

39. Reduction in S corporation recognition period for built-in gains tax (sec. 1374(d)(7))

40. Authority to issue Recovery Zone economic development bonds and facility bonds (secs. 1400U-2(b) and 1400U-3(b))

Provisions Expiring in 2011

1. Work opportunity tax credit (sec. 51(c)(4))

2. Leaking Underground Storage Tank Trust Fund financing rate (secs. 4041(d)(4) and 4081(d)(3))

3. Credit for electric drive motorcycles, three-wheeled vehicles, and low-speed vehicles (sec. 30(f))

4. Conversion credit for plug-in electric vehicles (sec. 30B(i)(4))

5. Treatment of military basic housing allowances under low-income housing credit (sec. 142(d))

6. Disclosure of prisoner return information to the Federal Bureau of Prisons (sec. 6103(k)(10))

Provisions Expiring in 2012

1. Qualified green buildings and sustainable design project bonds (sec. 142(l)(8))

2. Cellulosic biofuel producer credit (sec. 40(b)(6)(H))

3. Placed-in-service date for wind facilities eligible to claim electricity production credit (sec. 45(d))

4. Credit for production of Indian coal (sec. 45(e)(10)(A)(i))

5. Election to claim the energy credit in lieu of the electricity production credit for wind facilities (sec. 48(a)(5))

6. Credit for prior year minimum tax liability made refundable after period of years (sec. 53(e))

7. Discharge of indebtedness on principal residence excluded from gross income of individuals (sec. 108(a)(1)(E))

8. Special depreciation allowance for cellulosic biofuel plant property (sec. 168(l))

Provisions Expiring in 2013

1. Determination of low-income housing credit rate (sec. 42(b)(2))

2. Placed-in-service date for facilities (other than wind facilities) eligible to claim the electricity production credit (sec. 45(d))

3. Election to claim the energy credit in lieu of the electricity production credit for renewable power facilities other than wind facilities (sec. 48(a)(5))

4. Three-year depreciation for race horses two years old or younger (sec. 168(e)(3))

5. Placed-in-service date for partial expensing of certain refinery property (sec. 179C(c)(1))

6. Energy efficient commercial buildings deduction (sec. 179D(h))

7. Transfer of excess pension assets to retiree health accounts (sec. 420(b)(5))

Provisions Expiring in 2014

1. Incentives for alternative fuel and alternative fuel mixtures involving liquefied hydrogen:

a. Excise tax credits and outlay payments for liquefied hydrogen (secs. 6426(d)(5) and 6427(e)(6)(D))

b. Excise tax credits and outlay payments for liquefied hydrogen fuel mixtures (secs. 6426(e)(3) and 6427(e)(6)(D))

3. Alternative fuel refueling property (hydrogen refueling property) (sec. 30C(g)(1))

4. Automatic amortization extension for multiemployer defined benefit pension plans (sec. 431(d)(1)(C))

5. Additional funding rules for multiemployer defined benefit pension plans in endangered or critical status (sec. 432, and sec. 221(c) of Pub. L. No. 109-280)

6. Deemed approval of adoption, use or cessation of shortfall funding method for multiemployer defined benefit pension plans (secs. 201(b) and 221(c) of Pub. L. No. 109-280)

Provisions Expiring in 2016

1. Credit for residential energy property (sec. 25D(g))

2. Increased credit for business solar energy property (sec. 48(a)(2)(A)(i)(II))

3. Credit for hybrid solar lighting systems (sec. 48(a)(3)(A)(ii))

4. Energy credit for geothermal heat pump property, small wind property, and combined heat and power property (secs. 48(a)(3)(A)(vii), 48(c)(4)(D), and 48(c)(3)(A)(iv))

5. Credit for business installation of qualified fuel cells and stationary microturbine power plants (sec. 48(c)(1)(D) and (c)(2)(D))

Temporary Disaster Relief Federal Tax Provisions Expiring in 2009

1. Housing tax relief for individuals for areas damaged by 2008 Midwestern severe storms, tornados and flooding (sec. 702 of Division C of Pub. L. No. 110-343)

2. Work opportunity tax credit with respect to certain individuals affected by Hurricane Katrina for employers inside disaster areas (sec. 201 of Pub. L. No. 109-73)

3. National disaster relief:

a. Losses attributable to Federally declared disasters (sec. 165(h))

b. Expensing of qualified disaster expenses (sec. 198A)

c. Net operating losses attributable to Federally declared disasters (sec. 172(b)(1)(J))

d. Waiver of certain mortgage revenue bond requirements following Federally declared disasters (sec 143(k))

e. Special depreciation allowance for qualified disaster property (sec. 168(n))

f. Increased expensing for qualified disaster assistance property (sec. 179(e))

5. New York Liberty Zone: tax-exempt bond financing (sec. 1400L(d)(2)(D))

6. Increase in rehabilitation credit for structures located in the Gulf Opportunity Zone (sec. 1400N(h))

7. Tax relief for Kiowa County, Kansas, and surrounding area by reason of severe storms and tornados beginning May 4, 2007 (sec. 15345 of Pub. L. No. 11-246)

a. additional depreciation allowance for nonresidential real property and residential rental property

b. expensing for demolition and clean-up costs

c. net operating losses

Temporary Disaster Relief Federal Tax Provisions Expiring in 2010

1. Tax-exempt bond financing for the Gulf Opportunity Zone (sec. 1400N(a))

2. Advance refunding of certain tax-exempt bonds (sec. 1400N(b))

3. Low-income housing credit additional housing credit dollar amount for the Gulf Opportunity Zone and certain programmatic expansions for the Gulf Opportunity Zone, the Rita GO Zone, and the Wilma GO Zone (sec. 1400N(c))

4. Placed-in-service date for additional depreciation for specified Gulf Opportunity Zone extension property (sec. 1400N(d)(6))

5. Treatment of residences located in the Gulf Opportunity Zone, the Rita Go Zone, or the Wilma Go Zone as targeted area residences for purposes of mortgage revenue bond rules (sec. 1400T)

6. Waiver of first-time homebuyer rule for qualified Hurricane Katrina residences financed with mortgage revenue bonds (sec. 104 of Pub. L. No. 109-135)

7. Tax relief for areas damaged by 2008 Midwestern severe storms, tornados and flooding (sec. 702 of Division C of Pub. L. No. 110-343)

a. low-income housing tax credit relief

b. expensing for demolition and clean-up costs

c. extension of expensing for environmental remediation costs

d. special rules for mortgage revenue bonds

Temporary Disaster Relief Federal Tax Provisions Expiring in 2011

1. Tax relief for areas damaged by 2008 Midwestern severe storms, tornados and flooding (sec. 702 of Division C of Pub. L. No. 110-343)

a. increase in rehabilitation credit b. treatment of net operating losses attributable to disaster losses

Temporary Disaster Relief Federal Tax Provisions Expiring in 2012

1. Tax-exempt bond financing rules for areas damaged by 2008 Midwestern severe storms, tornados and flooding (sec. 702 of Division C of Pub. L. No. 110-343)

2. Tax-exempt bond financing rules for areas damaged by Hurricane Ike in 2008 (sec. 704 of Division C of Pub. L. No. 110-343)

Temporary Disaster Relief Federal Tax Provisions Expiring in 2013

1. Extension of replacement period for nonrecognition of gain for areas damaged by 2008 Midwestern severe storms, tornados and flooding (sec. 702 of Division C of Pub. L. No. 110-343)

--Last Update 03/10/09