Summary of H.R. 4853 Benefits
100% Bonus Depreciation & Extension of 50% Bonus– Temporary 100% bonus depreciation deduction for qualifying property placed in service between 9/9/10 and 12/31/11. 50% Bonus Depreciation provisions have also been extended through the end of 2012 (2013 for certain property).
15-Year Life for Qualified Real Property – 2-year extension allows for qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property to have a 15-year depreciation recovery period through the end of 2011.
§45L Energy Efficiency Credits for Multifamily & Residential Developers - 2-year extension allows Apartment developers and Homebuilders to be eligible for a $2,000 tax credit for every new energy efficient dwelling unit that is leased or sold by the end of 2011. For 2010, this tax credit, in many cases can offset AMT and have a 5-year carry-back and 20-year carry-forward.
Grants in Lieu of Energy Credits Extended- Section 1603 cash grant program rewarding renewable energy property extended through the end of 2011.
Hiring Credits Extended – Work Opportunity Tax Credit of up to $9,000 per eligible new hire has been extended through the end of 2011.
Employment Credits Extended – Empowerment Zone & Renewal Community Tax Credits allow for up to $3,000 in annual tax credits per employee through the end of 2011.
Capital Gain Exclusion Extended – Income exclusion for disposition of qualified property or equity has been extended for acquisitions through the end of 2011. This applies to qualified small businesses and businesses in Renewal Communities and Empowerment Zones.
Research Tax Credit Extended – Research credits for qualified research activities have been extended through the end of 2011.
Author: Gian Pazzia, CCSP