Senate Passes Tax Extenders; Biodiesel Credit Reinstated
SENATE PASSES TAX EXTENDERS; BIODIESEL CREDIT REINSTATED
Late last night the Senate approved H.R. 5771, the “Tax Increase Prevention Act of 2014,” which includes a provision retroactively reinstating the biodiesel, renewable diesel and alternative fuel mixture tax credits through the end of 2014. President Obama is expected to sign the bill. As enacted the credits will be reinstated effective January 1. 2014. Unlike the last time the credits were retroactively reinstated, this legislation includes a section requiring the IRS to issue guidance to taxpayers on how to file a one-time claim for the 2014 credits. We anticipate this guidance to be forthcoming shortly. The last time such an instruction was included in legislation retroactively reinstating the credit the IRS required taxpayers to file a special Form 8849 to claim all credits for the year.