What is an extension of a tax credit?

The extension of the tax credit is the delay of the deadline set for a temporary tax credit. Within the US system, where the government - national, state or local - wants to support certain financial behavior, it may determine tax loans related to this behavior that must be used within a certain time frame. At its discretion, the government may expand the timeframe or postpone the deadline by carrying out an extension of the tax credit. Tax loans are very popular because they reduce the actual tax liability, while the deductions and exemptions only reduce the income of income tax. Although, in general, the US Congress allows most temporary tax loans to expire as planned, sometimes passes an extension of a tax credit for those who are extremely popular or have an intended impact on the economy. In many cases, these AX TKREDITY were for exotic purposes or businesses for which most individual taxpayers did not qualify. One such tax credit was a tax on research and development tax creditSection 41. This loan, introduced as part of the 1981 Economic Stimulus Act, is designed to reward enterprises that have been produced by research and development in the United States at the end of 1985, but prolonged 13 times until the beginning of the 21st century.

has been extended.

Some temporary tax loans were formulated in favor of individual taxpayers. The 2009 Economic Incentive Act included a $ 8,000 tax credit (USD) for taxpayers who bought the house throughout 2009. The loan was proposed to encourage taxpayers to buy houses and thus stimulate the economy; Some estimated that he was responsible for selling approximately 200,000 houses across the country. Credit has proven to be so popular and succoping that at the end of 2009 there was a significant unstant sale of houses that could not be closed by the deadline31 December. In November of the same year, Congress reported an extension of the tax credit by the end of April 2010; In July 2010, this partially extended the credit by allowing buyers who signed contracts by April 30 to claim their credit if they had concluded sales by the end of September.

Another popular tax credit is a credit for residential energy. In 2005, a tax credit was introduced 30% of the costs of certain materials for repair and renovation of houses. The materials had to meet certain energy efficiency standards and the loan was limited to $ 1,500 for most components, but for geothermal heat pumps, solar systems and small wind turbines for residential use. The credit was set to expire at the end of 2008, but was extended by the end of 2010, with the provisions that the cover cover of $ 1,500 ED both years of costs in the aggregate.