Today, the House passed the Tax Extenders Act of 2009, which extends many taxpayer friendly provision for one more year (i.e., 2010). The Act extends more than forty provisions related to both individuals and businesses. These provisions encourage charitable contributions, provide community development incentives, provide tax relief in the event of a Presidentially-declared disaster, and support the deployment of alternative vehicles and alternative fuels. While most of these decisions have already been made for your 2009 tax year, knowing that these provisions will be around for another year will help you and your tax attorney make the right financial decisions for your future.
Some notable provisions are:
- The extension of the above-the-line deduction for qualified tuition and related expenses.
- The extension of the above-the-line deduction for certain expenses of elementary and secondary school teachers.
- The extension of 15-year straight-line cost recovery for qualified leasehold, restaurant, and retail improvements.
- The extension of 5-year depreciation for farming business machinery and equipment.
- The extension of tax-free distribution from individual retirement plans for charitable purposes (see my earlier post on the subject).
- The extension of the alternative motor vehicle credit for certain hybrids.
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