Energy-Related Tax Extenders from the Tax Increase Prevention Act of 2014

In the recently enacted “Tax Increase Prevention Act of 2014,” Congress has once again extended a package of expired or expiring individual, business, and energy provisions known as “extenders.” The extenders are a varied assortment of more than 50 individual and business tax deductions, tax credits, and other tax-saving laws which have been on the books for years but which technically are temporary because they have a specific end date. Congress has repeatedly temporarily extended the tax breaks for short periods of time (e.g., one or two years), which is why they are referred to as “extenders.” The new legislation generally extends the tax breaks retroactively, most of which expired at the end of 2013, for one year through 2014.

The following energy provisions are retroactively extended through 2014 in the new law.

• The credit for nonbusiness energy property;
• The second generation biofuel producer credit (formerly cellulosic biofuels producer tax credit);
• The incentives for biodiesel and renewable diesel;
• The Indian country coal production tax credit;
• The renewable electricity production credit, and the election to claim the energy credit in lieu of the renewable electricity production credit;
• The credit for construction of energy efficient new homes;
• Second generation biofuels bonus depreciation;
• The energy efficient commercial buildings deduction;
• The special rule for sale or disposition to implement federal energy regulatory commission (FERC) or State electric restructuring policy for qualified electric utilities;
• The incentives for alternative fuel and alternative fuel mixtures; and
• The alternative fuel vehicle refueling property credit.

We hope this information is helpful. If you would like more details about these changes or any other aspect of the new law, please contact us.