Back in August I wrote an article on the Future of the 179d Tax Deduction and laid out some of the likely extension scenarios that we would see based on what has happened in the past. As we approach the end of the year, pressure is mounting to extend these popular tax provisions and Congress is taking notice.
According to Rep. Steve Womack (R-AR) there are not any bills currently in progress in the House for extending the 179d deduction. The house is currently focused on passing a continuing resolution to fund the government until March 2017. Once this continuing resolution is passed, the House can turn it’s attention to the expiring tax provisions. Womack expects this to happen in late December at the earliest, but most likely in January.
Womack’s office also reported that if the extension was delayed into the new year that it would be retroactive for any time period between expiration and passing. This means that if the deduction expires on January 1, 2017 and the deduction is extended on January 20, 2017 that projects completed between the 1st and the 20th could still be certified. This situation happened the last time the deduction was extended in December 2015 after expiring on January 1, 2015.
In the meantime, check back here for updates on the extension of the 179d tax deduction. Any projects completed during calendar year 2016 can still be certified for inclusion in your 2016 taxes. If you have any questions or have a project you think may benefit from the deduction, please don’t hesitate to contact us.
