Miscellaneous Tax Provisions Extension Act of 1985

Miscellaneous Tax Provisions Extension Act of 1985 - Amends the Internal Revenue Code to extend the income tax credit for increasing research activities from December 31, 1985, until July 31, 1986. Reduces the amount of such credit from 25 percent to 20 percent of such expenditures. Allows such credit for basic research payments to qualified organizations. Revises certain definitions and special rules related to such credit.

Extends the targeted jobs income tax credit from December 31, 1985, until July 31, 1986. Reduces the amount of such credit from the sum of 50 percent of first year wages and 25 percent of second year wages to 40 percent of first year wages. Requires that an individual must be employed for at least 14 days in order to be taken into account for such credit.

Extends from December 31, 1985, until August 1, 1986, the income tax exclusions for educational assistance programs and group legal plans.

Extends from December 31, 1985, until July 31, 1986, provisions relating to the awarding of attorney's fees to a prevailing taxpayer in Federal tax cases.

Extends the increase in the excise tax on cigarettes until August 1, 1986.

Extends from December 31, 1985, until July 31, 1986, the moratorium of specified net operating loss carryover rules.

Revises special rules concerning the allocation of research and experimental expenditures to income from sources within the United States. Extends such rules from August 1, 1985, until August 1, 1986.

Extends until July 31, 1986, the special rules relating to the filing of tax returns and payment of taxes by spouses of individuals missing in action during the Vietnam conflict.

Provides a limited tax exclusion for the value of lodging furnished by certain educational institutions to employees. Specifies that such exclusion shall be effective until August 1, 1986.

Extends from December 31, 1985, until August 1, 1986, the income tax deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly.

Extends until August 1, 1986, the residential energy tax credit for solar renewable energy source expenditures.

Extends the energy investment tax credit for solar and geothermal property until July 31, 1986.

Extends until July 31, 1986, the reduction in the excise tax on fuel used by taxicabs.