Bipartisan Tax Extenders Bill Introduced in Senate

Filed in Capitol Hill by on March 1, 2019 10 Comments

Senate Finance Committee Chairman Charles Grassley (R-Iowa) and Ranking Member Ron Wyden (D-Ore.) have introduced the Tax Extender and Disaster Relief Act of 2019, NAHB-supported legislation that would reinstate and extend key housing tax provisions through Dec. 31, 2019.

Of note to the housing community, the legislation addresses what is known as the “tax extenders,” a series of temporary tax provisions that expired at the end of 2017. The bill would retroactively reinstate in 2018 and extend the following expired tax provisions through 2019:

  • Deduction for Mortgage Insurance. Allows taxpayers, subject to an income cap beginning at $100,000, to deduct premiums paid for private mortgage insurance and FHA/RHA/VA insurance premiums.
  • Section 45L Tax Credit for Energy Efficient New Homes. Provides builders a $2,000 tax credit for the construction of homes exceeding heating and cooling energy standards by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements. Builders must have tax basis in the home to claim the credit (i.e., they must own and then sell/lease the residence).
  • Section 25C Tax Credit for Qualified Energy Efficiency Improvements. This policy offers a credit worth up to $500 (subject to a $500 lifetime cap), with lower caps for certain products, like windows, for consumers to install qualified energy-efficient upgrades.
  • Section 179D Energy Efficient Commercial Buildings Deduction. Provides a deduction of up to $1.80 per square foot for commercial and multifamily buildings that exceed specific energy efficiency requirements under ASHRAE 2007.
  • Mortgage Forgiveness Tax Relief. The provision eliminates any taxes home owners might face due to renegotiating the terms of a home loan, which result in forgiving or canceling a portion of the outstanding mortgage, particularly in connection with short sales. It applies only to principal residences and is extended until Jan. 1, 2020

The Section 25D tax credit, which offers a 30% tax credit for the installation of qualifying alternative energy equipment, remains in effect. However, the 25D credit is being gradually phased out and will expire starting in 2022.

The legislation also provides temporary tax relief for victims of most major natural disasters that occurred after Jan. 1, 2018.

For more information, contact J.P. Delmore at 800-368-5242 x8412.

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Comments (10)

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  1. When will the bill be passed for the tax extenders for 2019? Tax season is almost over and people are still waiting to file their returns, but are anxiously awaiting congress to approve these tax eztenders. It is ridiculous to file an amended return if these tax extenders are approved after April 15, thus resulting in double work. What takes congress so long to approve these extenders? Why hurt the people that really need these extenders?

    • NAHB Now says:

      Angela,
      We are hearing that the House Ways and Means Committee may take up tax extender legislation next week. NAHB continues to express our frustration to Congress about these delays and the consequences they have in the real world. Business owners and their customers should not have to gamble on whether or when Congress will act.

      • Thank you for your tesponse. I am particularly interested in the pmi tax extender. Yes, it is very frustrating to be waiting to file our taxes while waiting if or when Congress will approve. It seems senseless because people having to pay pmi really need this deduction. I hope I will hear soon that a decision has been made.

        • NAHB Now says:

          It now appears that there will not be a markup of tax extenders next week, but we still expect something to happen in the coming weeks.

          • If there will not be a markup of tax extenders before April 15th, people will be forced to file before the deadline and will have to do an amended tax return if passed. This creates more work for the taxpayer and for the IRS. This does not make any sense.

  2. Cimbadeo says:

    Appears our so-called Government is incapable of making a tax matter decision before tax filing deadline. Even if they do act by April 15, tax filing software forms like Free Fillable forms would need to be updated in time. Form 5695 Nonbusiness Energy Property Credit currently states reserved for future use. At the pace of our government, I don’t foresee an updated form by filing deadline should the extenders pass in time. Absurd.

  3. Will we receive an email if these tax extenders do pass by Congress?

    • NAHB Now says:

      Angela, we’ll provide an update on the blog. If you haven’t already, you can sign up to receive email notifications when we publish a new blog post, so that way you’ll know when we post another update. On the home page of the blog you’ll see the “Subscribe to NAHBNow” sign-up.

  4. Brian says:

    Are there any new updates on the passage of the energy efficiency tax credits?

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