Select Provisions Modified by Recent Tax Legislation |
Provision | Legislative Update | Changes | Opportunity |
Section 179D | FCAA | Renewed the expired incentive for energy-efficient building and system upgrades retroactively to Jan. 1, 2018, and through Dec. 31, 2020. | Tax deductions between $.60 to $1.80 per square foot for upgrades to qualifying systems, which can be identified via cost segregation studies or other reviews. Rebates may be available for 2018 tax year as well. |
Qualified Improvement Property | CARES Act | Gives qualified improvement property a 15-year depreciation recovery period retroactively for property placed in service after Dec. 31, 2017. | Claim 100% bonus depreciation benefits and optimize Section 179 expensing for 2018 and 2019 projects. |
Net Operating Losses & Section 382 Limitation | CARES Act | Permits carryback of net operating losses to five previous years and removes 80% limitation on losses for 2018-2020. | Reduce 2019 tax liability and claim refunds for taxes paid in previous years. |
Excess Business Loss Limitation | CARES Act | Removes limitations on business losses that had been put in place by the 2017 tax reform law | Non-corporate taxpayers may be able to reduce 2019 tax liabilities and claim refunds for taxes paid in 2018 or previous years. |
Section 163(j) Business Interest Deduction | CARES Act | Increases deduction for business interest expense in 2019 and 2020 to 50% of adjusted taxable income | Reduce 2019 and 2020 tax liability, and potentially claim refunds for prior year taxes paid. |
Corporate Alternative Minimum Tax | CARES Act | Accelerates recovery period for refundable corporate AMT credits into 2018 or 2019 | The entire refundable corporate AMT credit can be taken in 2018 or 2019, and can be claimed as a refund for either year. |