For the most up-to-date information on Qualified Improvement Property, see our latest post.
Our technical team has been keeping tabs on the latest updates on the Hill in regard to tax extenders and technical corrections, given how they may impact 45L Tax Credits and 179D Deductions and the cost recovery of Qualified Improvement Property for 2018. We will post our updates here to keep you informed. Feel free to reach out to our dedicated experts for questions. We’re happy to help.
December 20, 2019
On Friday, December 20th, President Trump signed and enacted a $1.4 trillion spending package that funds the government for the 2020 fiscal year, averting a second government shutdown for 2019. Among these tax breaks are various provisions for energy related tax credits and incentives. » Read More
September 9, 2019
“Lawmakers returning from recess this week will begin working on the contours of a tax package that they hope to pass by the end of the year. They have to grapple with temporary tax breaks known as extenders, which are near and dear to industries…” » Read more from Bloomberg Tax
August 13, 2019
“Tax breaks for short-line railroads and energy-efficient commercial buildings should be among the provisions made permanent, a bipartisan group of Senate Finance Committee lawmakers said in a report released Aug. 13…”
» Read more from Bloomberg Tax
June 20, 2019
News of continued, positive movement for the much-awaited extenders package. The House panel approves extenders package to move forward by a vote of 25-17. Find out the latest in this recent article published by The Hill » https://thehill.com/homenews/policy/finance/449658-house-panel-approves-bills-on-tax-extenders-expanding-tax-credits
June 18, 2019
The House Ways & Means Committee is scheduled to mark up tax extenders on Thursday, June 20, 2019. The just-released Taxpayer Certainty and Disaster Tax Relief Act of 2019 looks to retroactively extend many expired tax extenders, including the 45L tax credit and 179D tax deduction, for another 3 years through December 31, 2020.
June 11-12, 2019
The Real Estate Roundtable Annual Meeting in Washington, DC
KBKG’s CJ Aberin, Lou Guerrero, and Will Long attended The Real Estate Roundtable’s 2019 Annual Meeting in DC. Notable highlights included House Ways & Means Chairman Richard Neal (featured) discussing his plan to go beyond a 2-year extension on tax extenders and his intention to address technical corrections such as correcting the recovery period for qualified improvement property. Additionally, CJ Aberin and Lou Guerrero had the opportunity to also hear from Beth Bell, Democratic Tax Counsel for the House Ways & Means Committee regarding the tax agenda for the year.
May 29, 2019
It appears that the House Ways and Means Committee is now considering a retroactive 2-year extension of tax extenders through the end of 2019. A draft proposal offsets the cost of tax extenders by ending TCJA’s estate tax exemptions 2 years earlier in 2023 as opposed to the end of 2025.
See POLITICO for more details » www.politico.com/newsletters/morning-tax/2019/05/29/crs-weighs-in-441508
The Senate Finance Committee launched bipartisan taskforces to address tax extenders including the 45L tax credit and 179D tax deduction along with other temporary tax policy. This bipartisan effort is encouraging for the real estate industry and other industries that are still waiting on renewal of tax extenders, many of which expired at the end of 2017. The video in our blog shows Senator Chuck Grassley, a longtime supporter of extenders, making the case for these taskforces.
May 15, 2019
Currently, it appears that the most likely vehicle for tax extenders continues to be future legislation for addressing the debt ceiling or an appropriations bill. See POLITICO for more details. Link the URL: www.politico.com/newsletters/morning-tax/2019/05/15/lets-talk-next-steps-436818
May 16, 2019
Our Principal, CJ Aberin, and Senior Manager, Brandon Val Verde met with House Ways & Means Committee member, Representative Judy Chu to discuss clean energy tax policy. » www.linkedin.com/feed/update/urn:li:activity:6533839601319190528
Momentum may be building in Congress towards correcting a significant clerical error in the Tax Cuts and Jobs Act (TCJA). The error, known to some as the “retail glitch,” prevents investments in qualified improvement property (QIP) from qualifying for bonus depreciation. The correction would reduce the recovery period for QIP from 39 years to 15 years (20 years for ADS) making it eligible for 100 percent bonus depreciation!
February 28, 2019
Tax Insight: Senate and House Updates on Tax Extenders for 2018-2019
Senate Finance Committee Chairman Chuck Grassley (R. Iowa) and Ranking Member Ron Wyden (D. Oregon) introduced bipartisan legislation to retroactively extend tax extenders for 2018 and 2019 while also providing disaster tax relief benefits to those affected by major disasters in 2018.
February 14, 2019
Tax Insight: Tax Extender Update from Senator Chuck Grassley
Senate Finance Committee Chairman Chuck Grassley (R. Iowa) addressed tax policy and various provisions that KBKG and the Real Estate Roundtable have been monitoring closely. In his speech, Senator Grassley expressed his commitment to pursue tax extenders and rejection of press reports suggesting that some provisions may no longer be extended if not included in the recently passed funding bill to avert a government shutdown.
February 13, 2019
Legislative Tax Policy Update for Real Estate Webinar with Ryan McCormick
KBKG hosted a webinar with special guest speaker and Washington insider, Ryan McCormick, Senior Vice President & Counsel for Tax Policy at The Real Estate Roundtable to provide an update as to what to expect from Capitol Hill in the coming months.
Tax issues impacting real estate were addressed along with possible timelines and vehicles for future tax legislation.
January 29-30, 2019
The Real Estate Roundtable State of Industry Meeting in Washington, DC
CJ Aberin, Lou Guerrero, Brandon Val Verde, and Will Long traveled to DC to hear from House Speaker Nancy Pelosi, Senator Tim Scott, and others addressing national issues. Additionally, they participated in RER committee meetings. One of the highlights was a tax discussion with Andrew Grossman, Chief Tax Counsel, House Ways and Means Majority; Randy Gartin, Chief Tax Counsel, House Ways and Means Minority; Mark Warren, Chief Tax Counsel, Senate Finance Majority; and Tiffany Smith, Chief Tax Counsel, Senate Finance Minority.