Year-end Government Spending Bill – Dennis Gardiner, Managing Partner, CPA
On December 20, 2019, President Trump signed the end-of-year spending and tax extension package into law. This package includes:
- A five-year extension of the $1 per gallon biodiesel blenders tax credit.
- An extension of the Work Opportunity Tax Credit (WOTC) through the end of 2020. The WOTC is a federal tax credit available to employers that hire and retain individuals from certain groups that have consistently faced significant employment barriers.
- One-year extension of the new markets tax credit (NMTC). The NMTC is a tax credit for investing in local development groups that lend money to businesses in low-income areas.
- The SECURE (Setting Every Community Up for Retirement Enhancement) Act was included in the package. The Secure Act is designed to encourage retirement savings in various ways and to simplify administrative requirements in order to make it easier for employers to offer retirement plans.
- Requires 401(k) plans to let more part-timers participate
- Increases the age after which required minimum distributions from certain retirement accounts must begin to 72 (from 70½);
- Makes it easier for long-term, part-time employees to participate in elective deferrals
- Repeals the maximum age for IRA contributions (currently 70½). It also amends Sec. 408 to reduce the amount of deductible charitable IRA contributions allowed to taxpayers over 70½ by the aggregate IRA contribution deductions allowed to them after they turn 70½.
- And several other key provisions