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It also permits expensing of up to $250,000 of the cost of qualified leasehold improvement property, restaurant property, and retail improvement property, as was allowed under prior law.

The New Markets Tax Credit (NMTC) program encourages private investment into businesses in low-income communities. Under this program, a client may obtain a 39 percent tax credit, spread out over seven years. The new law extends the NMTC program through 2013, retroactive to 2012.

In 2013 both phaseout limits and credit amounts will revert back to lower levels. The Earned Income Tax Credit is a refundable credit for married couples filing jointly with 2012 earned income under $50,270 and singles who made less than $45,060. The more children you have, the more money you receive. Your income and family size determine the amount of the credit, but the maximum credit is $5,891 this year. The income thresholds for this credit have increased over the past decade, and the maximum credit has increased since the recession.

The above-the-line deduction for qualified tuition and related expenses, which expired at the end of 2011 is now revived for 2012 and continued through 2013

Mortgage insurance premiums as qualified residence interest, which expired at the end of 2011 is now revived for 2012 and continued through 2013

Employer-provided mass transit and parking benefits is now revived for 2012 and continued through 2013;

A special rule for contributions of capital gain real property made for conservation purposes, which expired at the end of 2011 is now revived for 2012 and continued through 2013

The following depreciation provisions are retroactively extended by the Act through 2014: 15-year straight line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements; 7-year recovery period for motorsports entertainment complexes;accelerated depreciation for business property on an Indian reservation; increased expensing limitations and treatment of certain real property as Code Sec. 179 property; special expensing rules for certain film and television productions; and the election to expense mine safety equipment.

Exclusion of 100% of gain on certain small business stock acquired before Jan. 1, 2014.

. The following business credits and special rules are also extended: The Code Sec. 41 research credit is modified and retroactively extended for two years through 2013.The temporary minimum low-income tax credit rate for nonfederally subsidized new buildings under Code Sec. 42(b)(2)(A) is extended to apply to housing credit dollar amount allocations made before Jan. 1, 2014.The housing allowance exclusion for determining area median gross income for qualified residential rental project exempt facility bonds is extended two years.The Code Sec. 45A Indian employment tax credit is retroactively extended for two years through 2013.The Code Sec. 45D new markets tax credits is retroactively extended for two years through 2013. The Code Sec. 45G railroad track maintenance credit is retroactively extended for two years through 2013.The Code Sec. 45N mine rescue team training credit is retroactively extended for two years through 2013.The Code Sec. 45P employer wage credit for employees who are active duty members of the uniformed services is retroactively extended for two years through 2013.The Code Sec. 51 work opportunity tax credit is retroactively extended for two years through 2013.Code Sec. 54E qualified zone academy bonds are retroactively extended for two years through 2013. The enhanced charitable deduction for contributions of food inventory under Code Sec. 174(e) is retroactively extended for two years through 2013.Allowance of the domestic production activities deduction for activities in Puerto Rico, for the first eight tax years of the taxpayer beginning after Dec. 31, 2005, and before Jan. 1, 2014.Exclusion from a tax-exempt organization's unrelated business taxable income (UBTI) of interest, rent, royalties, and annuities paid to it from a controlled entity under Code Sec. 512(b)(13)(E)(iv) is extended through Dec. 31, 2013.Treatment of certain dividends of regulated investment companies (RICs) as “interest-related dividends” is extended through Dec. 31, 2013.Inclusion of RICs in the definition of a “qualified investment entity” under Code Sec. 897(h)(4) is extended through Dec. 31, 2013.The exception under subpart F for active financing income (i.e., certain income from the active conduct of a banking, financing, insurance, or similar business) under Code Sec. 953(e)(10) and Code Sec. 954(h)(9) for tax years of a foreign corporation beginning after Dec. 31, '98, and before Jan. 1, 2014, for tax years of foreign corporations beginning after Dec. 31, 2005, and before Jan. 1, 2014.Look-through treatment for payments between related controlled foreign corporations (CFCs) under the foreign personal holding company rules under Code Sec. 954(c)(6) is extended through Jan. 1, 2014.Exclusion of 100% of gain on certain small business stock acquired before Jan. 1, 2014.Basis adjustment to stock of S corporations making charitable contributions of property under Code Sec. 1367(a) in tax years beginning before Dec. 31, 2013.The reduction in S corporation recognition period for built-in gains tax under Code Sec. 1374(d)(7) is extended through 2013, with a 10-year period instead of a 5-year period.Various empowerment zone tax incentives, including the designation of an empowerment zone and of additional empowerment zones under Code Sec. 1391(d) (extended through Dec. 31, 2013) and the period for which the percentage exclusion for qualified small business stock (of a corporation which is a qualified business entity) is 60%Code Sec. 1202(a)(2) (extended through Dec. 31, 2018).Tax-exempt financing for New York Liberty Zone under Code Sec. 1400L(d)(2) is extended for bonds issued before Jan. 1, 2014.Temporary increase in limit on cover over run excise taxes to Puerto Rico and the Virgin Islands is extended for spirits brought into the U.S. before Jan. 1, 2014.American Samoa economic development credit, as modified, is extended through Jan. 1, 2014.