A number of tax incentives of interest to apartment firms expired at the end of the year when the Senate failed to pass a tax extenders bill. They include the Tax Credit Exchange Program (TCEP) for states that participate in the Low-Income Housing Tax Credit (LIHTC) program, the new markets tax credit, the credit for construction of new energy-efficient homes (Section 45L), the 50 percent bonus depreciation provision (Section 168), the increase in small business expensing limits (Section 179) and the immediate expensing of “brownfields” environmental remediation costs (Section 198).
The House passed its tax extenders bill (HR 4213) on Dec. 9. The Senate is expected to take up a tax extenders bill in early 2010. Congress is expected to make the extensions retroactive to Jan. 1, 2010, as it has done in past years.