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Congress Passed Extension Package to Avoid the “Fiscal Cliff” – Including…

 …Extension of Tax Credit for Energy Star Manufactured and Modular Homes

Congress approved legislation or the H.R. 8, the “American Taxpayer Relief Act of 2012” on January 1st, 2013.  The legislation averted the “fiscal cliff” which extended a number of expiring tax provisions.

“Highlights of the “American Taxpayer Relief Act” include a permanent extension of the 2001 and 2003 (“Bush”) tax cuts, at least for taxpayers with incomes below certain thresholds, changes in basic tax rate structure, and extension of the capital gains tax rate structure. The estate and gift tax rules applicable in 2012 were also made permanent, and estates worth up to $5 million ($10 million for married couples) will go untaxed. In addition, a provision tying the exemption to inflation increases the estate tax exemption to estates worth $15 million for married couples by 2020.”

The “ATM patch” or the alternative minimum tax exemption amount was extended by H.R. 8 which expired at the end of 2011.  It also temporarily extended numerous American Recovery and Reinvestment Act provisions. Other provisions that will now expire at the end of 2013:

• Research and experimentation tax credit (extension and modification)

• Provisions directed at individuals

• Deduction for certain expenses of elementary and secondary school teachers

• Parity for exclusion for employer-provided mass transit and parking benefits

• Deduction for mortgage insurance

“Included in these extended tax provisions, in a significant victory for the factory-built housing industry, was the New Energy Efficient Home Credit (I.R.C. 45L) through December 31, 2013. This credit, which had expired at the end of 2011, provides builders of Energy Star-qualified manufactured homes with a tax credit of $1,000 (per home) and builders of modular homes with a credit of $2,000 (per home).” (MHI, 2013)

January 10, 2013 Posted by | Legislation | , , , , , , , , , , , , , | Leave a comment