CPA & Business Advisory Blog

American Taxpayer Relief Act – Extension Detail

As a follow-up to our initial e-blast covering the highlights of the American Taxpayer Relief Act, see below for more detail on specific extensions included in the Act.

Individual Tax Extenders

  • Extension of deduction for certain expenses of elementary and secondary school teachers.
  • Extension of exclusion from gross income of discharge of qualified principal residence indebtedness.
  • Extension of parity for exclusion from income for employer-provided mass transit and parking benefits.
  • Extension of mortgage insurance premiums treated as qualified residence interest.
  • Extension of deduction of State and local general sales taxes.
  • Extension of special rule for contributions of capital gain real property made for conservation purposes.
  • Extension of above-the-line deduction for qualified tuition and related expenses.
  • Extension of tax-free distributions from individual retirement plans for charitable purposes.
  • Improve and make permanent the provision authorizing the Internal Revenue Service to disclose certain return and return information to certain prison officials.

Business Tax Extenders

  • Extension and modification of research credit.
  • Extension of increased expensing limitations and treatment of certain real property as section 179 property.
  • Extension and modification of bonus depreciation.
  • Extension of temporary minimum low-income tax credit rate for non-federally subsidized new buildings.
  • Extension of housing allowance exclusion for determining area median gross income for qualified residential rental project exempt facility bonds.
  • Extension of Indian employment tax credit.
  • Extension of new markets tax credit.
  • Extension of railroad track maintenance credit.
  • Extension of mine rescue team training credit.
  • Extension of employer wage credit for employees who are active duty members of the uniformed services.
  • Extension of work opportunity tax credit.
  • Extension of qualified zone academy bonds.
  • Extension of 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements.
  • Extension of 7-year recovery period for motorsports entertainment complexes.
  • Extension of accelerated depreciation for business property on an Indian reservation.
  • Extension of enhanced charitable deduction for contributions of food inventory.
  • Extension of election to expense mine safety equipment.
  • Extension of special expensing rules for certain film and television productions.
  • Extension of deduction allowable with respect to income attributable to domestic production activities in Puerto Rico.
  • Extension of modification of tax treatment of certain payments to controlling exempt organizations.
  • Extension of treatment of certain dividends of regulated investment companies.
  • Extension of RIC qualified investment entity treatment under FIRPTA.
  • Extension of subpart F exception for active financing income.
  • Extension of look-thru treatment of payments between related controlled foreign corporations under foreign personal holding company rules.
  • Extension of temporary exclusion of 100 percent of gain on certain small business stock.
  • Extension of basis adjustment to stock of S corporations making charitable contributions of property.
  • Extension of reduction in S-corporation recognition period for built-in gains tax.
  • Extension of empowerment zone tax incentives.
  • Extension of tax-exempt financing for New York Liberty Zone.
  • Extension of temporary increase in limit on cover over of rum excise taxes to Puerto Rico and the Virgin Islands.
  • Modification and extension of American Samoa economic development credit.

Energy Tax Extenders

  • Extension of credit for energy-efficient existing homes.
  • Extension of credit for alternative fuel vehicle refueling property.
  • Extension of credit for 2- or 3-wheeled plug-in electric vehicles.
  • Extension and modification of cellulosic biofuel producer credit.
  • Extension of incentives for biodiesel and renewable diesel.
  • Extension of production credit for Indian coal facilities placed in service before 2009.
  • Extension and modification of credits with respect to facilities producing energy from certain renewable resources.
  • Extension of credit for energy-efficient new homes.
  • Extension of credit for energy-efficient appliances.
  • Extension and modification of special allowance for cellulosic biofuel plant property.
  • Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities.
  • Extension of alternative fuels excise tax credits.


  • Extension of emergency unemployment compensation program.
  • Temporary extension of extended benefit provisions.
  • Extension of funding for reemployment services and reemployment and eligibility assessment activities.
  • Additional extended unemployment benefits under the Railroad Unemployment Insurance Act.

Medicare and Other Health Extensions

  • Medicare physician payment update.
  • Work geographic adjustment.
  • Payment for outpatient therapy services.
  • Ambulance add-on payments.
  • Extension of Medicare inpatient hospital payment adjustment for low-volume hospitals.
  • Extension of the Medicare-dependent hospital (MDH) program.
  • Extension for specialized Medicare Advantage plans for special needs individuals.
  • Extension of Medicare reasonable cost contracts.
  • Performance improvement.
  • Extension of funding outreach and assistance for low-income programs.
  • Extension of the qualifying individual (QI) program.
  • Extension of Transitional Medical Assistance (TMA).
  • Extension of Medicaid and CHIP Express Lane option.
  • Extension of family-to-family health information centers.
  • Extension of Special Diabetes Program for Type I diabetes and for Indians..
  • IPPS documentation and coding adjustment for implementation of MS-DRGs.
  • Revisions to the Medicare ESRD bundled payment system to reflect findings in the GAO report.
  • Treatment of multiple service payment policies for therapy services.
  • Payment for certain radiology services furnished under the Medicare hospital outpatient department prospective payment system.
  • Adjustment of equipment utilization rate for advanced imaging services.
  • Medicare payment of competitive prices for diabetic supplies and elimination of overpayment for diabetic supplies.
  • Medicare payment adjustment for non-emergency ambulance transports for ESRD beneficiaries.
  • Removing obstacles to collection of overpayments.
  • Medicare advantage coding intensity adjustment.
  • Elimination of all funding for the Medicare Improvement Fund.
  • Rebasing of State DSH allotments.
  • Repeal of CLASS program.
  • Commission on Long-Term Care.
  • Consumer Operated and Oriented Plan program contingency fund.

Agricultural Programs

  • 1-year extension of agricultural programs.
  • Supplemental agricultural disaster assistance.

If you have any questions about how this Act will impact you or your business, we encourage you to call our Tax Planning and Preparation group at 440-449-6800.

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