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2020 Tax Extenders

The Consolidated Appropriations Act included several new relief packages for individuals and businesses. As we dissect the current bill, YHB is producing a series of in-depth analysis on the bill to help you take advantage of the bill. In this article, we will explore the tax extenders.

The new bill offers several tax extenders for prior tax law that was set to expire at the end of 2020. These extensions were either allowed for one, two, or five more years. Some of the extenders were made permanent. Below are the major extenders that impact most individuals:


  • The medical expense deduction floor is set to 7.5 percent of adjusted gross income
  • Energy efficient commercial building deductions
  • Decrease in excise taxes for some brewers and distillers of alcohol

5 Year Extenders:

  • Employer credit for paid family and medical leave
  • Work opportunity credit
  • The ability to exclude discharge of indebtedness on a principal residence
  • The ability to exclude from income employer’s paying student loan payments for employees.

2 Year Extenders:

  • Residential energy-efficient property credit
  • Solar and Residential Energy-Efficient property investment credits

1 Year Extenders:

  • Nonbusiness Energy Property credit of up to 10 percent of the property.

Should you have any questions, contact a YHB advisor today!

Additional articles in this series:

About the Author

Nicholas Preusch, CPA, JD, LLM

Nick’s expertise includes helping high wealth individual and large business entities with complex tax compliance, along with specializing in international, non-for-profit tax issues, and tax ethics issues. He has used his tax expertise not only to serve his clients, but also his peers. He has authored publications for the AICPA’s Journal of Accountancy, AICPA’s Tax Advisor, NATP’s Tax Pro Journal, and CCH’s Journal of Tax Practice and Procedure and co-authored a textbook, Tax Preparer Penalties and Circular 230 Enforcement, published by Thomas Reuters. He has also lectured nationally on topics such as ethics, complex tax transactions, and IRS practice and procedure.