CONSOLIDATED APPROPRIATIONS ACT

Consolidated Appropriations Act. Multiple sections of the act lay out different priorities of the Congress and Biden Administration. Section 102-Energy Efficient Commercial Building Deduction. Provides for a permanent extension of the 179D deduction for energy efficient commercial buildings. The Section 179D deduction is an upfront deduction that is obtained for the installation of energy efficient construction or improvement to commercial buildings that reduce total annual energy or power costs by 50%. Those improvements include, but are not limited to, interior lighting, HVAC, and building envelope systems. Consolidated Appropriations Act. No Tax Resolution Services credits were included in the Consolidated Appropriations Act.

Section 103-Benefits provided to Volunteer FIrefighters and Emergency Medical Responders. Gross income does not include any “qualified state and local tax benefit” which is a payment provided by a state or local government on account of performing volunteer emergency response services. The exclusion amount is $50 for each month during which a volunteer performs services. This is a permanent provision and is applicable for tax years beginning after December 31, 2020.

Section 104-Transition from Deduction for Qualified Tuition and Related Expenses to Increased Income Limitation on Lifetime LEarning Credit. The Act repeals the deduction for tuition and fees starting on January 1, 2021 and increases the phase out amounts for the Lifetime Learning Credit. It also standardizes the phaseout rules for both the American Opportunity Tax Credit and the LIfetime Learning Credit and replaces them with a single phase out.

Subtitle B-Certain Provisions Extended Through 2025 Section 112-New Markets Tax Credit. Provides for a five year extension of the New Markets Tax Credit extension through 2025. This credit provides an incentive for investment in the low income communities, in the hopes of stimulating the development of more affordable housing. Section 113-Work Opportunity Credit. The Act extends the Work Opportunity Credit through 2025.

Section 114-Exclusion from Gross Income of Discharge of Qualified Principal Residence Indebtedness. The Act reduces the maximum “acquisition indebtedness” limits from $2 million to $750,000 for married filing separate. The provision is extended through 2025.