Small Business Taxes & Management^TM--Copyright 2008, A/N Group, Inc.

The list below is broken into two parts. The first list is Federal Tax Provisions Expiring 2007-2010; the second list contains Temporary Disaster Relief Federal Tax Provisions Expiring 2007-2010.

Provisions Expired December 31, 2007

1. Credit for certain nonbusiness energy property (sec. 25C(g))

2. Personal tax credits allowed against regular tax and alternative minimum tax ("AMT")(sec. 26(a)(2))(amended by Tax Increase Prevention Act of 2007)

3. Election to include combat pay as earned income for purposes of earned income credit (sec. 32(c)(2)(B)(vi))

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

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

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

7. Date by which certain biomass or synthetic fuels produced at certain qualified facilities must be sold to be eligible for the credit for producing fuel from a nonconventional source (sec. 45K(f)(1)(B))

8. Credit for energy efficient appliance (sec. 45M(b))

9. Increased AMT exemption amount (sec. 55(d)(1)) 10. Deduction for certain expenses of elementary and secondary school teachers (sec. 62(a)(2)(D))

11. Penalty-free withdrawals from retirement plans for individuals called to active duty (sec. 72(t)(2)(G))

12. Use of qualified mortgage bonds to finance residences for veterans without regard to first-time homebuyer requirement (sec. 143(d)(2)(D))

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

14. 15-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant improvements (sec. 168(e)(3)(E)(iv) and (v))

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

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

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

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

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

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

21. Expensing of "brownfields" environmental remediation costs (sec. 198(h))

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

23. Archer medical savings accounts ("MSAs") (sec. 220(i)(2) and (3)(B))

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

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

26. Special rule for sales or dispositions to implement FERC or State electric restructuring policy (sec. 451(i)(3))

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

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

29. Treatment of certain dividends and assets of regulated investment companies

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

31. Qualified zone academy bonds--allocations of bond authority (sec. 1397E(e)(1))

32. Tax incentives for investment in the District of Columbia:

a. Designation of D.C. enterprise zone, employment tax credit, and additional expensing (sec. 1400(f)(1))

b. Tax-exempt D.C. empowerment zone bonds (sec. 1400A(b))

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

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

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

34. Disclosure of tax information to facilitate combined employment tax reporting (sec. 6103(d)(5)(B))

35. Disclosure of return information to inform officials of terrorist activities (sec. 6103(i)(3)(C)(iv))

36. Disclosure upon request of information relating to terrorist activities (sec. 6103(i)(7)(E))

37. Disclosure of return information to carry out income contingent repayment of student loans (sec. 6103(1)(13)(D))

39. 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))

40. Tax on failure to comply with mental health parity requirements applicable to group health plans (sec. 9812(f))

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

Provisions Expiring In 2008
(expire 12-31-08; exceptions indicated in bold)

1. Airport and Airway Trust Fund excise taxes:

a. All but 4.3 cents per gallon of taxes on noncommercial aviation kerosene and noncommercial aviation gasoline (sec. 4081(d)(2)(B)) (2-29-08)

b. Domestic and international air passenger ticket taxees (sec. 4261(j)(1)(A)(ii))(2-29-08)

c. Air cargo tax (sec. 4271(d)(1)(A)(ii))(2-29-08)

3. Disclosure of tax return information for administration of certain veterans programs (sec. 6103(l)(7)(D)(viii)) (9-30-08)

4. Credit for residential energy efficient property (sec. 25D(g))

5. Incentives for biodiesel and renewable diesel:

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

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

c. Excise tax credits and outlay payments for biodiesel fuel mixtures (secs. 6426(c)(6) and 6427(e)(5)(B))

d. Excise tax credits and outlay payments for renewable diesel fuel mixtures (secs. 6426(c)(6) and 6427(e)(5)(B))

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

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

9. Mine rescue team training credit (sec. 45N)

10. Increased credit for business solar energy property (sec. 48(a)(2)(A)(i)(II))

11. Credit for hybrid solar lighting systems (sec. 48(a)(3)(A)(ii))

12. Credit for business installation of qualified fuel cells and stationary microturbine power plants (sec. 48(c)(1)(E) and (c)(2)(E))

13. Issuance of clean renewable energy bonds (sec. 54(m))

14. Five-year NOL carryback for certainelectric utility companies (sec. 172(b)(1)(I))

15. Energy efficient commercial buildings deduction (sec. 179D(h))

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

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

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

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

20. FUTA surtax of 0.2 percent (sec. 3301(1))

21. Special rate for qualified methanol or ethanol fuel from coal (sec. 4041(b)(2)(D))

Provisions Expiring In 2009
(expire 12-31-09; exceptions indicated in bold)

1. Qualified green buildings and sustainable design project bonds (sec. 142(l)(8)) (9-30-09)

2. Incentives for alternative fuel and alternative fuel mixtures (excluding liquefied hydrogen):

a. Excise tax credits and outlay payments for alternative fuel (secs. 6426(d)(4) and 6427(e)(5)(C)) (9-30-09)

b. Excise tax credits and outlay payments for alternative fuel mixtures (secs. 6426(e)(3) and 6427(e)(5)(C)) (9-30-09)

4. Alternative fuel vehicle refueling property (non-hydrogen refueling property) (sec. 30C(g)(2))

5. Credit for small refiners for production of diesel fuel in compliance with EPA sulfur regulations for small refiners (sec. 45H(c)(4))

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

7. Discharge of indebtedness on principal residence excluded from gross income of individuals (sec. 108(a)(1)(E))

8. Increase in expensing (sec. 179(b)(1) and (2), (c)(2), and (d)(1)(A)(ii))

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

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

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

12. Empowerment zone tax incentives:

a. 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)(C) and 1391(d)(1)(A)(i))

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

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

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

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

a. 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), 1400F(c)(2), and 1400F(d))

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

c. Commercial revitalization deduction (sec. 1400I(g))

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

Provisions Expiring December 31, 2010

1. Provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001

2. Reduced capital gain rates (secs. 1(h) and 1445(e)(6) and sec. 102 of Pub. L. No. 109-222)

3. Dividends taxed at capital gain rates (sec. 1(h) and sec. 102 of Pub. L. No. 109-222))

4. Alternative motor vehicle credit for advanced lean burn technology motor vehicles and qualified hybrid motor vehicles that are passenger automobiles or light trucks (sec. 30B(j)(2))

5. Alternative motor vehicle credit for qualified alternative fuel vehicles (sec. 30B(j)(4))

6. Incentives for alcohol fuels:

a. Alcohol fuels income tax credit (alcohol fuel, alcohol used to produce a qualified mixture, and small ethanol producers) (sec. 40(e)(1)(A), (h)(1), and (h)(2))

b. Alcohol fuel mixture excise tax credit and outlay payments (secs. 6426(b)(5) and 6427(e)(5)(A))

7. Exclusion of gain from sale of a principal residence by certain employees of the intelligence community (sec. 121(d)(9), and sec. 417 of Pub. L. No. 109-432)

8. Exclusion from income for benefits provided to volunteer firefighters and emergency medical responders (sec. 139B)

9. Premiums for mortgage insurance deductible as interest that is qualified residence interest (sec. 163(h)(3))

10. Five-year amortization of music and music copyrights (sec. 167(g)(8))

11. Natural gas distribution lines treated as 15-year property (sec. 168(e)(3)(E)(viii))

Temporary Disaster Relief Federal Tax Provisions that Expired in 2007

1. Payments by charitable organizations with respect to firefighters who died as a result of the October 2006 Esperanza Incident fire treated as exempt payments (Pub. L. No. 109-445) (5-31-07)

2. Work opportunity tax credit with respect to certain individuals affected by Hurricane Katrina for employers inside disaster areas (sec. 201 of Pub. L. No. 109-73) (8-27-07)

3. Placed-in-service date for additionaldepreciation for certain Gulf Opportunity Zone property other than nonresidential real property and residential rental property (sec. 1400N(d)(2))

4. Increase in expensing under section 179 for certain Gulf Opportunity Zone property (sec. 1400N(e))

5. Expensing for certain demolition and cleanup costs in the Gulf Opportunity Zone (sec. 1400N(f))

6. Expensing for environmental remediation costs (sec. 1400N(g))

7. Increased expensing for qualified timber property in the Gulf Opportunity Zone, Rita GO Zone, or Wilma GO Zone (sec. 1400N(i)(1))

8. Five-year NOL carryback period for NOLs attributable to Gulf Opportunity Zone losses with respect to certain moving expenses (sec. 1400N(k))

9. Increase in new markets tax credit limitation with respect to community development entities, the mission of which is the recovery and redevelopment of the Gulf Opportunity Zone (sec. 1400N(m))

Temporary Disaster Relief Federal Tax Provisions Expiring in 2008

1. Special rule for applying income tests in non-metropolitan areas under low-income housing credit for the Gulf Opportunity Zone, the Rita GO Zone, and the Wilma GO Zone (sec. 1400N(c)(4))

2. Placed-in-service date for additional depreciation for certain Gulf Opportunity Zone property that is nonresidential real property and residential rental property (sec. 1400N(d)(2))

3. Increase in expensing under section 179 for certain Gulf Opportunity Zone property (secs. 1400N(e))

4. Increase in rehabilitation credit for structures located in the Gulf Opportunity Zone (sec. 1400N(h))

Temporary Disaster Relief Federal Tax Provisions Expiring in 2009

1. New York Liberty Zone: tax-exempt bond financing (sec. 1400L(d)(2)(D))

Temporary Disaster Relief Federal Tax Provisions Expiring in 2010

1. Tax-exempt bond financing for the Gulf Opportunity Zone (sec. 1400N(a))

2. Advance refunding of certain tax-exempt bonds (sec. 1400N(b))

3. Low-income housing credit additional housing credit dollar amount for the Gulf Opportunity Zone and certain programmatic expansions for the Gulf Opportunity Zone, the Rita GO Zone, and the Wilma GO Zone (sec. 1400N(c))

4. Placed-in-service date for additional depreciation for specified Gulf Opportunity Zone extension property (sec. 1400N(d)(6))

5. Treatment of residences located in the Gulf Opportunity Zone, the Rita Go Zone, or the Wilma Go Zone as targeted area residences for purposes of mortgage revenue bond rules (sec. 1400T)

6. Waiver of first-time homebuyer rule for qualified Hurricane Katrina residences financed with mortgage revenue bonds (sec. 104 of Pub. L. No. 109-135)

--Last Update 01/22/08