Unless Congress gets it act together, there are a number of tax breaks that are set to expire at the end of the year, many of which could impact your wallet.
Businesses and business interest groups are quietly pushing Congress to extend the tax breaks but given the looming deadline, the only real hope would be Congress retroactively push the tax breaks back into the new year.
Here are 10 tax breaks that will expire in 2014.
(For tax tips on how to deal with these changes, however, be sure to consult your tax attorney.)
Nascar is pushing for an extension of a break that allows track owners to write off property investments over seven years instead of 15. A one-year extension was included in the fiscal cliff deal last year. Extending the seven-year cost recovery period would cost $24 million next year. (via MarketWatch)
9. Research and experimentation
Some researchers across the county are given exemptions on their work — in certain cases — as the country as a whole benefits from the brains that drive development. Tax questions such as these likely should be bipartisan, but often aren’t.
Last year’s fiscal cliff deal extended a host of incentives for biodiesel fuel, including income tax credits for small agri-biodiesel producers. That meant $1.8 billion less for the government in 2013. The credits would be less generous next year: $300 million. (via MarketWatch)
7. Puerto Rico and the U.S. Virgin Islands
Our territories would get less of their share of an excise tax on rum if this one is allowed to expire. Extending it into 2013 cost the government $199 million, and is projected to cost $23 million if renewed. (via MarketWatch)
6. Mine-rescue team training
Some safety and rescue operations are set for tax cuts as well — which could significantly impact rescue efforts.
5. Energy efficient appliances
This tax credit has been extended in the past, though Congress has been under pressure to cut cut cut, and green energy is always targeted in budget cuts.
4. TV and film
Some film and TV productions are permitted to use special expensing rules that cost the Treasury $266 million in 2013. If these are extended next year, that is projected to amount to $164 million in lost revenue. Tax cuts here also benefit state economies. (via MarketWatch)
3. Horse Racing
A three-year depreciation for race horses 2 years old or younger will expire unless Congress acts. Horse racing enthusiasts are closely watching this one.
The tax credit for maintaining railroad tracks is also set to expire. Look for this one to be extended.
1. Vehicle tax (but not the four-wheeled kind)
$1 million was the credit for two- or three-wheeled vehicles cost this year. It’ll be a little more generous next year — $3 million, if it is extended. (via MarketWatch)
Be sure to discuss with your tax advisor other tax credits you may have been banking on — as a divided Congress is not one to bank on.