On Tuesday, December 16th the U.S. Senate passed H.R. 5771 by a 76 to 16 vote reviving dozens of previously expired tax breaks for calendar year 2014 only.The bill is now awaiting President Obama’s signature in order for the bill to become law. It is highly anticipated that the President will sign this bill into law before the calendar year-end.

The primary congressional tax extenders affecting the Real Estate industry include, but are not limited to:

• I.R.C. § 168 provision allowing 15-year Straight-Line Cost Recovery for Qualified Leasehold Improvements, Qualified Restaurant Buildings and Improvements, and Qualified Retail Improvements;

• I.R.C. § 168 Bonus First-Year Depreciation (i.e., for certain property with longer production periods, the property must be placed in service before 01/01/16);

• I.R.C. § 45 Tax Credits with respect to Facilities Producing Energy from Certain Renewable Sources;

• I.R.C. § 45L Energy Tax Credit for Energy-Efficient New Homes; and

• I.R.C. § 179D Energy Tax Deduction for Building Envelope Efficiency.

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