List of Tax Provisions that “Expired” on December 31, 2009

May 26, 2010

Each year, there is a list of tax provisions that Congress tends to procrastinate on throughout the year, eventually extending them at the last minute. Once again, Congress has allowed many tax provisions to technically expire at the end of 2009. As of the time this was written (May 24, 2010), Congress was debating but had not yet passed any extenders legislation for 2010 to send to Pres. Obama for his signature. These extenders include, among other things, the so-called AMT patch, which increases the AMT exemption. This page will be updated if/when Congress passes an extenders package for 2010 to list those extenders that were indeed extended and those that were not.

The full list of these provisions that expired on December 31, 2009 is below. Most of this list comes directly from the Joint Committee on Taxation (JCT). Each item includes its specific reference in tax law, again courtesy of JCT.

Popular Individual Income Tax Provisions (including two key AMT patch provisions)

Personal tax credits allowed against regular tax and alternative minimum tax (“AMT”)
(sec. 26(a)(2))3

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

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

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

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

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

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

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

Other Extenders (mostly business related)

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

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

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

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

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

Tax credit for research and experimentation expenses
(sec. 41(h)(1)(B))

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

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)

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

Placed-in-service date for facilities eligible to claim the refined coal production credit
(sec. 45(d)(8))

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

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

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

Production of low sulfur diesel fuel credit for small refiners – period for incurring qualified expenditures in compliance with Environmental Protection Agency (“EPA”) sulfur regulations
(sec. 45H(c)(4))

Placed-in-service date for eligibility for tax credit for the production of coke or coke gas
(sec. 45K(g)(1))

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

Mine rescue team training credit (sec. 45N)

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

Issuance of clean renewable energy bonds (“CREBs”)
(sec. 54(m))

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

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

15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements
(secs. 168(e)(3)(E)(iv), (v), (ix), 168(e)(7)(A)(i) and (e)(8)(E))

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

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

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

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

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

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

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

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

Extended net operating loss (“NOL”) carryback period
(sec. 172(b)(1)(H))

Increase in expensing to $250,000/$800,000
(sec. 179(b)(7))6

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

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

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

Expensing of “brownfields” environmental remediation costs
(sec. 198(h))

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

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

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

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

Special rule for sales or dispositions to implement Federal Energy Regulatory Commission (“FERC”) or State electric restructuring policy
(sec. 451(i))

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

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

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

Mineral royalties treated as qualified real estate investment trust (“REIT”) income for timber REITs
(sec. 856(c)(2)(I))

Treatment of timber gains of REITs
(secs. 856(c)(5)(H)(iii) and 856(c)(8))

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
(secs.856(c)(8), 857(b)(6)(G), and 857(b)(6)(H))

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

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

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

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

Basis step-up for property acquired from a decedent
(sec. 1014 and sec. 901 of Pub. L. No. 107-16)

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

Designation of an empowerment zone and of additional empowerment zones
(secs. 1391(d)(1)(A)(i) and (h)(2))

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) and 1391(d)(1)(A)(i))

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

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

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

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

Designation of DC Zone, employment tax credit, and additional expensing
(sec. 1400(f)(1))

DC Zone tax-exempt bonds
(sec. 1400A(b))

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

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

Designation of renewal community
(secs. 1400E(b)(1)(A) and (b)(3))

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) and (4)(B)(i), 1400F(c)(2), 1400F(d))

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

Commercial revitalization deduction
(secs. 1400I(d)(2) and 1400I(g))

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

Definition of gross estate for RIC stock owned by a nonresident not a citizen of the United States
(sec. 2105(d))

Estate and generation-skipping transfer taxes
(secs. 2210 and 2664)

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

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

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

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))

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

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)

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

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

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


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