Lisa, Here Are Your Articles for Wednesday, August 05, 2020
Is this email not displaying correctly?
View it in your browser .
Website Services Tax Tools Financial Tools Resources Referrals
Share Save

Tax Credits on Their Way Out


Legislation in 2019 — the Taxpayer Certainty and Disaster Tax Relief Act — resurrected or extended several income tax breaks. But Congress giveth and taketh away, and several of them will expire at the end of 2020, as noted below:

  • Credit for qualified fuel cell motor vehicles. This covers fuel cell vehicles propelled by oxygen and hydrogen, which are chemically combined to create electricity. Currently there is a $4,000 to $40,000 credit for vehicles, depending on their weight. 
  • The credit for alternative fuel vehicle refueling equipment. This has been a personal and business federal income tax credit for up to 30% of the cost of installing nonhydrogen alternative fuel vehicle refueling equipment (including the credit for a personal recharging station in your garage).
  • The credit for two-wheeled plug-in electric vehicles. The 10% federal income tax credit for the purchase of qualifying electric-powered two-wheeled vehicles manufactured primarily for use on public thoroughfares and capable of at least 45 miles per hour is set to expire.
  • The credit for energy-efficient home improvements. This credit has been worth up to $500 for those installing certain energy-saving improvements in a principal residence. 
  • The deduction for qualified tuition and related expenses. You still can deduct qualifying higher education expenses until the end of 2020. The college tuition write-off was resurrected for 2018 and extended through the end of 2020. It does not require itemization.
  • Medical expenses deductions. This is not actually disappearing, but the rate is changing: The favorable 7.5% floor for the deduction has been extended through the end of 2020. After that, it will go up to 10%. 
  • The designation of certain geographic areas as empowerment zones. This complex series of provisions is scheduled to end at the end of the year. However, in some instances, the designation may continue for 10 years after the date of designation.
  • The Work Opportunity Tax Credit. This is a federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment. Barring an extension, it will expire at the end of the year.
  • The energy-efficient commercial buildings deduction. This will disappear at the end of 2020.

Of course, this is just an introduction to a series of complex topics, so be sure to consult a professional about their applications in your situation. Also, it is very possible that at least some of these will be given extensions as the end of the year approaches, so we'll be keeping an eye out for developments.

Share Save

Your Comments

McCullough Rossi & Company, Ltd.
McCullough Rossi & Company, Ltd.
Trusted Accountants. Confident Advisors.
2300 Barrington Road, Suite 260
Hoffman Estates, IL 60169-2034
Office: (847) 843-3919
Follow Me on Twitter
Connect with me on LinkedIn
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © IndustryNewsletters All rights reserved.

This email was sent to:

Mailing address: 2300 Barrington Road Suite 260, Hoffman Estates, IL 60169-2034