The Bipartisan Budget Act of 2018, signed into law on Friday February 9th, includes short-term extensions of over 30 previously expired tax provisions. These extensions, which go into effect retroactively for the 2017 tax year, include the Federal Empowerment Zone Credit (FEZ) and the Indian Employment Credit (IEC).
In regards to extending these two tax credits past 2017, the House Ways and Means Chairman Kevin Brady (R-TX), who had previously expressed opposition to the extensions, has indicated that he will hold hearings to determine which of the items should continue beyond 2017 in view of the passage of the Tax Cuts and Jobs Act of 2017.
On the day of the Act’s passage, the IRS stated that it is “reviewing the legislation… assessing these significant changes in the tax law and beginning to determine next steps.”
First Advantage will begin calculating 2017 FEZ and IEC credits for our clients and issuing those reports so our clients can claim the credits on their 2017 federal income tax returns. If you have any questions, please contact your First Advantage tax account manager.