Tax Provisions Extended
A government shut-down has been averted and the compromise has produced good news for real estate. The two-year, $400 billion spending deal came as a result of a bipartisan group of lawmakers supporting the agreement. Congress now has until March 23 to write the legislation to accompany the spending deal that will fund the government for the rest of the fiscal year. The National Association of REALTORS® fought and achieved a number of wins for real estate, including a temporary extension of federal flood insurance and extension of NAR-backed tax provisions. Here are the details:
•Flood insurance. The National Flood Insurance Program has been extended until March 23, giving lawmakers time to work out an extension that could last until September 30. The deal also adds $27 billion in mitigation and resiliency funds to address issues arising from last year’s hurricanes, and it makes $12 billion available under the Community Development Block Grant program to fund U.S. Army Corp of Engineers flood mitigation projects.
•Extension of tax provisions. The deal retroactively extends provisions for the 2017 tax year for mortgage debt forgiveness; mortgage insurance premiums and energy efficiency improvements in commercial buildings.
•Tax Credit. The non-business energy property tax credit applies to ten percent of the amount paid for qualified energy efficiency improvements such as energy-saving roofs, windows, skylights, and doors, and 100 percent of that paid for qualified energy products, such as high-efficiency water heaters, air conditioning units, and furnaces.
Source: REALTOR® Magazine