MEDFORD, Ore. — Another new year means another round of “will-they-won’t-they” with dozens of popular tax credits. It’s not an easy dance for people’s money heading into 2014.
Dozens of popular tax credits are set to expire as of January 1. The same thing happened last year, although the credits were quickly renewed. The credits cover a wide range of things, including business expenses, and alternative energy.
If Congress doesn’t eventually renew them once more, financial planners said people need to have a backup plan to make up for having to pay more taxes.
“They’ll really see it come tax time when they actually put pen to paper,” said Doug Armstrong, a financial planner in Medford. “I think some people will be a little shocked, potentially.”
The loss of several tax credits could negatively hit Oregon’s green energy industry, according to experts. Some say the prices for wind power may not have come down enough to withstand the loss of those credits for consumers.
“The federal and the state [agencies] are concerned about tax credits and giving money away,” said Buzz Thielemann of RHT Energy Solutions. “And there’s also a contingency that says, ‘hey, we have enough wind and the prices have dropped, it should be enough to stand on its own.’”
If Congress does again decide to reinstate the tax breaks when they return to session, they would likely be retroactive to the first of the year, so people can claim them on their taxes.