Tax credits

The chairs of Congress' two main tax committees announced a deal to extend a number of expired tax credits and tax breaks, including the expanded Child Tax Credit.

Negotiators are nearing a bipartisan deal in time for many voters to receive the benefits during the current election year.

The Internal Revenue Service is extending the period for dealers and sellers of so-called "clean" vehicles such as electric cars to submit time-of-sale reports by a few days to qualify for tax credits.

Businesses eager to see Congress revive expired research and investment tax breaks have reason for optimism that a deal could come together as soon as this month.

Narrower criteria reduced the number of qualifying models from about two dozen. The new rules exclude from the tax credit vehicles that use battery components made by Chinese manufacturers.

What do these changes mean for taxpayers and how can accountants help manage the impact?

The Internal Revenue Service and Treasury plan to propose regulations on a requirement for a product identification number, and they're asking for comments ahead of time on the PIN requirement.

The Treasury Department and the Internal Revenue Service issued guidance for producers of clean electricity and other forms of renewable energy if they begin constructing projects next year that fall short of the necessary requirements for domestically manufactured components.

Under the draft proposal from the Treasury Department, hydrogen projects would need to adhere to strict environmental requirements.

The Internal Revenue Service has updated its frequently asked questions to offer more guidance on what kinds of components can be used in electric vehicles to qualify for tax credits.