Nothing lasts forever – and the Internal Revenue Code is filled with examples. Increasingly, for budgetary and other reasons, Congress enacts tax provisions on a temporary basis. Sometimes these provisions are extended again and again, and eventually become a permanent part of the Code, but others are truly one-shot deals.<\/p>\n
In any case, with all of this coming and going, it\u2019s difficult for tax professionals, much less their clients, to keep track of precisely how long these temporary provisions are scheduled to last. Here is a quick rundown of some tax breaks that will soon be history.<\/p>\n
Tax breaks expiring after 2021<\/strong><\/p>\n Credit for nonbusiness energy property [Code Sec. 25C(g) (2)].<\/strong> Individuals are allowed a nonrefundable credit for energy-saving improvements to a principal residence that are placed in service before Jan. 1, 2022, and that meet certain energy efficiency standards. The credit is equal to the sum of (1) 10% of amounts paid for energy-efficient building envelope components (insulation, exterior windows or door, or metal or asphalt roofs, for example) plus (2) specified dollar amounts paid for the purchase of residential energy property, such as $50 for an advanced main air-circulating fan, $150 for a qualified furnace or hot water boiler, and $300 for an electric heat pump water heater. The maximum credit is $500 ($200 for windows) less credits claimed in prior years.<\/p>\n