By Debbie Gregory.
Did you know that some tax breaks have a limited life span? Recent changes to the US tax laws have placed an expiration date on certain tax provisions that were originally slated to last longer. If you qualify for any of the following, grab your tax break while you can.
Here are 3 major tax credits that expire December 31, 2019:
1.) Credit for electric powered vehicles
If you purchase an electric-powered vehicle you may be eligible for a tax credit up to $7,500. If the vehicle is being used for business, the business can also claim the tax credit.
2.) Credit for paid family and medical leave
If you own a business and offer your employees paid leave, you may quality for a tax credit. To qualify, you must have a written policy that you provide at least two weeks of paid leave and that you pay at least 50% of wages normally paid to an employee. The credit amount ranges from 12.5% to 25% of wages, depending on what you pay. However, this tax credit only applies to employees that earn less than $72,000 a year.
3.) Work opportunity credit
If you own a business and you are looking to hire some new employees, your business may be able to take a tax credit up to $9,600 as long as the people you hire fall into certain targeted categories.
The targeted groups are as follows:
- Long-term family assistance recipient
- Qualified recipient of Temporary Assistance for Needy Families (TANF)
- Qualified Veteran
- Qualified ex-felon
- Designated community resident
- Vocational rehabilitation referral
- Summer youth employee
- Supplemental Nutrition Assistance Program (SNAP) benefits (food stamps) recipient
- SSI recipient
- Qualified long-term unemployment recipient
To qualify, your business must submit form 8850 (https://www.irs.gov/pub/irs-pdf/f8850.pdf) to your state workforce agency no later than 28 days after the new qualifying employee begins work.
For more information on these tax breaks as well as any others you or your business may qualify for please refer to the IRS website at https://www.irs.gov/.
