ERRATA “GENERAL EXPLANATION OF TAX LEGISLATION ENACTED IN THE 111TH CONGRESS” 1. On page 555, add the following footnote 1582A to the word “amount” in the next to last sentence in example 3: The provision adds new section 2010(c)(4), which generally defines “deceased spousal unused exclusion amount” of a surviving spouse as the lesser of (a) the basic exclusion amount, or (b) the excess of (i) the basic exclusion amount of the last deceased spouse of such surviving spouse, over (ii) the amount with respect to which the tentative tax is determined under section 2001(b)(1) on the estate of such deceased spouse. A technical correction may be necessary to replace the reference to the basic exclusion amount of the last deceased spouse of the surviving spouse with a reference to the applicable exclusion amount of such last deceased spouse, so that the statute reflects intent. Applicable exclusion amount is defined in section 2010(c)(2), as amended by the provision. 2. Beginning on page 706, replace the entire Appendix: The Estimated Budget Effects of Tax Legislation Enacted in the 111th Congress with the attached revenue table. The Appendix printed in JCS-2-11 contains errors as a result of the printing process, including unreadable characters and an omission of an outlay from footnote 38 that necessitated moving footnote 38 (to become footnote 25 in the corrected revenue table) and renumbering footnotes 25 through 37. Due to formatting differences, the pagination of the corrected revenue table differs from the pagination of the revenue table printed in JCS-2-11. JOINT COMMITTEE ON TAXATION March 23, 2011 JCX-20-11 APPENDIX: ESTIMATED BUDGET EFFECTS OF TAX LEGISLATION ENACTED IN THE 111TH CONGRESS Fiscal Years 2009 - 2020 [Millions of Dollars] Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 PART ONE: THE CHILDREN'S HEALTH INSURANCE PROGRAM REAUTHORIZATION ACT OF 2009 (P.L. 111-3, signed into law by the President on February 4, 2009) I. Requirements for Group Health Plans [1] [2]……………… DOE --- -150 -275 -325 -350 -375 -375 -425 -450 -475 --- --- -3,200 II. Other Revenue Provisions A. Increase in Excise Tax Rate on Tobacco Products and Cigarette Papers and Tubes [3] 1. Small Cigars............................................................... ara 3/31/09 46 108 91 91 91 92 92 92 92 92 --- --- 886 2. Large Cigars............................................................... ara 3/31/09 75 424 419 425 433 442 451 458 466 474 --- --- 4,070 3. Cigarettes.................................................................... ara 3/31/09 3,489 6,479 6,173 6,117 6,066 6,014 5,960 5,906 5,849 5,795 --- --- 57,850 4. All other tobacco products.......................................... ara 3/31/09 145 307 289 286 285 283 281 279 276 274 --- --- 2,705 B. Modify Definition of Roll-Your-Own Tobacco......... ara 3/31/09 [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] --- --- 2 C. Permit, Reporting, and Recordkeeping Requirements for Manufacturers and Importers of Processed Tobacco..................................................... 4/1/09 Negligible Revenue Effect D B d A h i D S d dR k - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - D. Broaden Authority to Deny, Suspend, and Revoke Tobacco Permits DOE - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue 7 Permits......................................................... E Clarif Stat te E cise Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 706 E. Clarify Statute of Limitations Pertaining to Excise 6 Taxes Imposed on Imported Alcohol, Tobacco Products, and Cigarette Papers and Tubes.................. aiiUSa DOE Negligible Revenue Effect F I I di T U l f ll - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - F. Impose Immediate Tax on Unlawfully Manufactured Tobacco Products and Cigarette Papers and Tubes........................................................ DOE - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - G. Use of Tax Information in Tobacco Transition Payment Assessments [5]........................................... DOE [4] 1 [4] [4] [4] [4] [4] [4] [4] [4] --- --- 2 H. Study Concerning Magnitude of Tobacco Smuggling in the United States.................................. [6] - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Revenue I Modify No Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I. Timing for Corporate Estimated Tax Payment [7] ………………………………………… DOE --- --- --- --- 302 -302 --- --- --- --- --- --- --- TOTAL OF PART ONE…………………………………………………………… 3,755 7,169 6,697 6,594 6,827 6,154 6,409 6,310 6,233 6,160 --- --- 62,315 PART TWO: THE AMERICAN RECOVERY AND REINVESTMENT TAX ACT OF 2009 (P.L. 111-5, signed into law by the President on February 17, 2009) I. Tax Provisions A. Tax Relief for Individuals and Families 1. Making Work Pay Credit - credit of 6.2% of earned income up to a maximum of $400 single ($800 joint) for tax years 2009 and 2010; phaseout for taxpayers with modified AGI in excess of $75,000 ($150,000 joint); and treatment of the U.S. Possessions [8]......................... tyba 12/31/08 -19,900 -66,133 -30,166 --- --- --- --- --- --- --- --- --- -116,199 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 2. $250 Refundable Credit for Federal and State Pensioners not Eligible for Social Security Benefits for Tax Year 2009 [9] [10]........................... tyba 12/31/08 -44 -174 --- --- --- --- --- --- --- --- --- --- -218 3. Temporary increase in earned income tax credit for taxable years 2009 and 2010................................. tyba 12/31/08 -23 -2,349 -2,291 --- --- --- --- --- --- --- --- --- -4,663 4. Temporarily reduce the earnings threshold for the refundable portion of the child tax credit for taxable years 2009 and 2010 to $3,000...................... tyba 12/31/08 [11] -7,489 -7,342 --- --- --- --- --- --- --- --- --- -14,830 5. American Opportunity Tax Credit a. Amend the HOPE scholarship credit for taxable years 2009 and 2010 so that it is available for four years at a rate of 100% of first $2,000 of expenses and 25% of next $2,000; phaseout for taxpayers with modified AGI between $80,000 - $90,000 ($160,000- $180,000 joint); make textbooks a qualifying expense; allow against the AMT [9].... tyba 12/31/08 -791 -4,425 -5,040 --- --- --- --- --- --- --- --- --- -10,256 b. Make 40% of the allowable American Opportunity Tax Credit refundable; and treatment of the U.S. Possessions [9] ................... tyba 12/31/08 -331 -1,725 -1,595 --- --- --- --- --- --- --- --- --- -3,651 6. Temporarily allow computer technology and equipment as a qualified higher education expense for qualified tuition programs for 2009 and 2010 [11] [11] [11] 7 2010..................................................................... epoia 12/31/08 -1 -1 -1 -1 -1 -1 -1 -1 --- -6 7E i ffi i h b di i 70 7. Extension of first-time homebuyer credit; increase 07 y ; maximum credit to $8,000; waiver of requirement to repay first-time homebuyer credit unless home is sold within 36 months of purchase (sunset 11/30/09)..................................................................... qhpa 12/31/08 -1,115 -3,261 235 38 -102 -680 -597 -514 -384 -164 -94 --- -6,638 8. Grants to States for low-income housing projects in lieu of low-income housing credit allocations for 2009 [12]............................................. DOE -3,006 28 150 309 350 350 350 350 350 350 350 --- -69 9. Provide that certain Federal grant monies do not reduce basis for purposes of determining the applicable low-income housing tax credit for such building [10]............................................................... DOE -1 -3 -8 -12 -14 -16 -17 -18 -18 -18 -18 --- -143 10. Exclude up to $2,400 of unemployment insurance benefits from gross income for taxable year 2009.................................................................... tyba 12/31/08 -948 -3,792 --- --- --- --- --- --- --- --- --- --- -4,740 11. Sales tax deduction for purchase (up to $49,500) of new cars, light trucks, motorcycles, and motor homes; phaseout for taxpayers with modified AGI in excess of $125,000 ($250,000 joint) (sunset 12/31/09)..................................................................... po/a DOE -424 -1,269 9 --- --- --- --- --- --- --- --- --- -1,684 12. Increase individual AMT exemption amount to $46,700 ($70,950 joint) and allow personal credits against the AMT (sunset 12/31/09)................. tyba 12/31/08 -2,054 -82,720 15,015 --- --- --- --- --- --- --- --- --- -69,759 B. Tax Incentives for Business 1. Special allowance for certain property acquired during 2009: a. One-year extension of special allowance............... ppisa 12/31/08 -23,503 -14,301 8,047 6,501 5,574 4,553 3,046 1,941 1,217 929 922 --- -5,074 b. One-year extension of election to accelerate AMT and R&E credits in lieu of bonus depreciation........................................................... tyea 12/31/08 -20 -984 49 47 33 21 15 10 8 8 8 --- -805 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 2. One-year extension of temporary increase in limitation on expensing of certain depreciable business assets............................................................ tyba 12/31/08 -642 -425 352 222 162 125 79 45 22 10 10 --- -41 3. 5-year carryback of 2008 NOLs for businesses with gross receipts of $15 million or less................... [13] -4,741 708 753 648 486 365 274 205 154 115 87 --- -947 4. Reduce required estimated tax payments in 2009 for certain small businesses........................................ tybi 2009 -275 275 --- --- --- --- --- --- --- --- --- --- --- 5. Modification of the work opportunity tax credit - incentives to hire unemployed veterans and iwbwa 12/31/08 & disconnected youth..................................................... [14] -32 -81 -70 -28 -11 -6 -2 [11] --- --- --- --- -231 6. Clarification of regulations related to limitations on certain built-in losses following an ownership change......................................................................... DOE 1,437 1,775 646 261 225 304 419 457 470 484 499 --- 6,977 7. Treatment of certain ownership changes of manufacturing firms for purposes of limitation on net operating loss carryforwards and certain built-in losses.............................................................. oca DOE --- --- -19 -19 -181 -289 -289 -491 -625 -625 -625 --- -3,163 8. Deferral and ratable inclusion of income arising from business indebtedness discharged by the reacquisition of a debt instrument, and temporary ra 12/31/08 & AHYDO exception for debt exchange or before 1/1/11; modification................................................................ [15] -12,113 -22,803 -7,479 -483 -269 4,948 8,349 8,328 8,306 8,285 3,310 --- -1,622 9 7 9. Special rules applicable to qualified small b i k f 2009 d 2010 2 6 2 50 36 22 70 business stock for and 2010............................... saa DOE --- --- -207 -360 -163 ------ -829 08 10. Temporarily reduce the S corporation built-in tyba 12/31/08 and gains holding period from 10 to 7 years..................... before 1/1/11 -31 -154 -73 -32 -28 -19 -20 -16 -14 -13 -15 --- -415 C. Fiscal Relief for State and Local Governments 1. Modification of rules applicable to financial institutions for interest expense relating to oia 12/31/08 & tax-exempt income..................................................... before 1/1/11 -79 -239 -326 -340 -336 -331 -326 -321 -317 -312 -307 --- -3,234 2. For bonds issued during 2009 and 2010, suspend alternative minimum tax limitations on private-activity tax-exempt bonds and modify ACE to exclude interest from all tax-exempt bonds; and provide AMT relief for current refundings of certain private activity bonds during 2009 and 2010 (refundings of private activity bonds issued since 1/1/04).......................................... oia 12/31/08 -27 -69 -76 -49 -49 -49 -49 -48 -47 -46 -46 --- -555 3. For bonds issued in 2009 and 2010, expand industrial development bonds to include creation of intangible property and eliminate 25% of proceeds restriction for facilities functionally oia DOE & related and subordinate to a manufacturing facility... before 1/1/11 -1 -6 -16 -23 -24 -23 -23 -23 -22 -22 -21 --- -203 4. Qualified school construction bonds ($11 billion in 2009 and 2010)................................... oia DOE -19 -110 -315 -611 -918 -1,179 -1,345 -1,390 -1,362 -1,325 -1,303 --- -9,877 5. Extend and expand qualified zone academy bonds ($1.4 billion in 2009 and 2010)........................ oia 12/31/08 -1 -10 -40 -90 -130 -140 -137 -131 -125 -121 -120 --- -1,045 6. Build America Bonds - general rule: 35% credit to bondholders for bonds issued in 2009 and 2010 35% refundable credit to issuers for bonds issued 2009 and 2010............................................................ oia DOE -53 -323 -506 -495 -475 -455 -436 -417 -406 -396 -386 --- -4,348 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 7. Recovery zone bonds ($15 billion private activity bond allocation; $10 billion allocation for oia DOE & refundable issuer credit bonds, credit rate 45%)........ before 1/1/11 -175 -313 -503 -565 -568 -561 -554 -545 -537 -529 -521 --- -5,371 8. Tribal economic development bonds - create a national pool of tax-exempt bonds for use by Indian tribes for economic development ($2 billion allocation)................................................................... oia DOE -1 -4 -15 -31 -39 -39 -39 -38 -37 -36 -36 --- -315 9. Specify treatment of tax-credit bonds held by regulated investment companies................................. tyea DOE - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10. Delay ff 3% withholding on government contracts by one year.................................................................. DOE --- --- -5,819 5,528 --- --- --- --- --- --- --- --- -291 11. Extend and modify the new markets tax credit - increase new markets tax credit equity limitation to a total of $5 billion for calendar years 2008 and 2009............................................................................ DOE -51 -31 -48 -103 -115 -138 -131 -117 -86 --- 4 --- -815 D. Energy Incentives 1. Extend by three years the placed-in-service date for each section 45 qualified facility, (two years for marine renewables), excluding coal and solar ppisa 12/31/09 facilities...................................................................... & 12/31/10 --- -127 -440 -921 -1,365 -1,603 -1,649 -1,700 -1,743 -1,788 -1,806 --- -13,143 2. Election of investment credit for section 45 facilities in lieu of production credits......................... ppisa 12/31/08 -96 -131 -71 -16 9 12 6 2 1 1 --- --- -285 3 Modify section 48 energy credit remove cap 7 3. – f ll id d b k 70 for small wind systems, and remove cutback to 09 y , credit for subsidized energy financing........................ pa 12/31/08 -31 -33 -42 -50 -59 -71 -87 -104 -66 -32 -26 --- -604 4. Grants for specified energy property in lieu of ppisa 12/31/08 & tax credits [12]............................................................ before 1/1/11 -27 -77 -18 41 41 27 8 --- --- --- --- --- -5 5. Increased limitation on issuance of new clean renewable energy bonds ($1.6 billion additional allocation)................................................................... DOE -1 -4 -15 -36 -59 -73 -78 -78 -78 -78 -78 --- -578 6. Increased limitation on issuance of qualified energy conservation bonds ($2.4 billion additional allocation); and clarify green community programs for purposes of loans, grants and other repayment mechanisms................................................................ DOE -1 -5 -17 -41 -69 -95 -111 -116 -116 -116 -116 --- -803 7. Modify speed requirement for high-speed rail exempt facility bonds.................................................. oia DOE [11] -1 -3 -7 -13 -20 -29 -38 -48 -58 -71 --- -288 8. Extension and temporary increase to 30% ($1,500 per residence cap) credit for all section 25C nonbusiness energy property, repeal reduction in section 25C credits by reason of receipt of subsidized energy financing, and modify definition of qualified energy property and wood stoves (sunset 12/31/10)........................................................ tyba 12/31/08 [16] -186 -1,006 -842 --- --- --- --- --- --- --- --- --- -2,034 9. Credit for residential energy efficient property - remove credit cap for residential wind, geothermal property, and residential solar thermal property under section 25D, repeal reduction in all section 25D credits (residential solar, geothermal, wind, fuel cells) by reason of receipt of subsidized energy................................................... tyba 12/31/08 -7 -29 -30 -32 -33 -34 -36 -37 -28 --- --- --- -268 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 10. Temporarily increase credit rate for nonhydrogen refueling property to 50%; increase max credit to $50,000 for business property ($200,000 in the case of hydrogen) and $2,000 for nonbusiness property (sunset 12/31/10).......................................... tyba 12/31/08 -11 -21 -14 -6 -4 -2 1 1 1 1 1 --- -54 11. Modify carbon dioxide sequestration credit to require permanent geologic storage for CO2 used as a tertiary injectant................................................... DOE - Revenue Effect - - - - - - - - - - - 12 M difi ti f th lt ti t hi l - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12. Modification of the alternative motor vehicle credit and the credit for qualified plug-in electric generally drive motor vehicles................................................... DOE [17] -3 -20 -39 -74 -39 4 -85 -232 -383 -540 -589 --- -2,002 13. Credit for plug-in electric vehicle conversion (sunset 12/31/11)........................................................ ppisa DOE - Included in C 12 - - - - - - 14T f l i hi l di - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Estimate C.12. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 14. Treatment of alternative motor vehicle credit as a personal credit allowed against AMT......................... tyba 12/31/08 - Included in C.12. - - - - - - 15 Equalize tax benefits - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Estimate - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 15. tax-free transit and parking benefits, set both at $230 for 2009 and then index equally in 2010............................................................................ mbo/a DOE -57 -106 -29 --- --- --- --- --- --- --- --- --- -192 16. Credit for investment in advanced energy property ($2.3 billion of credits to allocate)............... ppisa DOE --- -168 -281 -319 -193 -152 -159 -152 -126 -72 -26 --- -1,647 E. Other Provisions 1. Prohibition on Collection of Certain Payments Made Under Continued Dumping and 7 the Subsidy Off A f 2000 5] 10] DOE 10 30 30 10 10 90 71 Offset Act of 10]......................................... -------- --- --- --- --- --- --- -10 [ ] [ ] 2. Economic Recovery Payments to Certain Individuals - economic recovery payments to recipients of Social Security, supplemental security income, railroad retirement benefits, and veterans disability compensation or pension benefits [5] [10]. DOE -14,041 -169 -15 --- --- --- --- --- --- --- --- --- -14,225 III. Health Insurance Assistance A. Premium Assistance for COBRA Continuation Coverage for Unemployed Workers and Their Families - 65% subsidy for up to 9 months; phased out for taxpayers with AGI above $125,000 single ($250,000 joint) [18] [19]................ [20] -14,302 -9,154 -1,407 26 75 46 29 10 1 --- --- --- -24,677 B. Modifications to Health Coverage Tax Credit, including increase to 80% (sunset 12/31/10) [21]...... generally DOE -108 -267 -80 -1 --- --- --- --- --- --- --- --- -457 TOTAL OF PART TWO…………………………………………………………… -97,843 -221,749 -39,862 9,226 1,851 4,572 6,016 4,659 3,911 3,855 -1,036 --- -326,412 PART THREE: AIRPORT AND AIRWAY TRUST FUND EXTENSIONS (P.L. 111-12, signed into law by the President on March 30, 2009; P.L. 111-69, signed into law by the President on October 1, 2009; P.L. 111-116, signed into law by the President on December 16, 2009; P.L. 111-153, signed into law by the President on March 31, 2010; P.L. 111-161, signed into law by the President on April 30, 2010; P.L. 111-197, signed into law by the President on July 2, 2010; P.L. 111-216, signed into law by the President on August 1, 2010; P.L. 11-249, signed into law by the President on September 30, 2010; and P.L. 111-329, signed into law by the President on December 22, 2010)………………………………………… DOE - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 PART FOUR: THE HIGHWAY TRUST FUND PURPOSES (P.L. 111-46, signed into law by the President on August 7, 2009; P.L. 111-68, signed into law by the President on October 1, 2009; P.L. 111-118, signed into law by the President on December 19, 2009; P.L. 111-144, signed into law by the President on March 2, 2010; P.L. 111-147, signed into law by the President on March 18, 2010; and P.L. 111-322 signed into law by the President on December 22, 2010)……………………… various - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PART FIVE: THE WORKER, HOMEOWNERSHIP, AND BUSINESS ASSISTANCE ACT OF 2009 (P.L. 111-92, signed into law by the President on November 6, 2009) A. Extension and Modification of First-Time Homebuyer Credit (sunset 4/30/10)........................... [22] --- -9,960 -2,755 678 668 473 30 24 11 4 3 --- -10,823 B. Increase Carryback Period to Five Years for Net Operating Losses Arising in Either 2008 or 2009...... [23] --- -33,197 5,870 5,202 3,808 2,673 1,877 1,319 928 653 461 --- -10,407 C. Exclude From Gross Income Qualified Military Base Realignment and Closure Fringe....................... pma 2/17/09 --- -119 -41 -15 -12 -11 -11 -8 -8 -8 -9 --- -243 D. Delay in Application of Worldwide Allocation of Interest Until 2018...................................................... tyba 12/31/10 --- --- 494 1,362 3,077 3,200 3,328 3,361 3,475 1,826 --- --- 20,123 E. Modification of Penalty for Failure to File Partnership 7 or S Corporation Returns 71 1. Increase the penalty for failure to file partnership 11 p y p p return by $106 to $195................................................ tyba 12/31/09 --- --- --- 2 39 92 95 98 102 105 109 --- 642 2. Increase the penalty for failure to file an S Corporation return by $106 to $195........................... tyba 12/31/09 --- --- --- 2 36 84 87 90 93 96 99 --- 587 F. Expansion of Electronic Filing by Return Preparers..................................................................... rfa 12/31/10 ---- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - G Increase the Required Corporate Estimated Tax Negligible evenue ffect G. Payments Factor for Corporations with Assets of at Least $1 Billion for Payments Due in July, August, and September 2014 by 33 Percentage Points............ DOE --- --- --- --- --- 18,298 -18,298 --- --- --- --- --- --- TOTAL OF PART FIVE…………………………………………………………… --- -43,276 3,568 7,231 7,616 24,809 -12,892 4,884 4,601 2,676 663 --- -121 PART SIX: HAITI TAX RELIF - ACCELERATE THE INCOME TAX BENEFITS FOR CHARITABLE CASH CONTRIBUTIONS FOR THE RELIEF OF VICTIMS OF EARTHQUAKE IN HAITI (P.L. 111-126, signed cma 1/11/10 & into law by the President on January 22, 2010)…………… before 3/1/20 --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Loss of Less Than $2 Million - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PART SEVEN: THE HIRING INCENTIVES TO RESTORE EMPLOYMENT ACT (P.L. 111-147, signed into law by the President on March 18, 2010) A. Incentives for Hiring and Retaining Unemployed Workers 1. Payroll tax forgiveness for hiring unemployed workers (sunset 12/31/10) [24]................................... wpa DOE --- -4,184 -3,432 --- --- --- --- --- --- --- --- --- -7,616 2. Business credit for retention of certain newly hired individuals in 2010............................................ wpa DOE --- --- -2,169 -2,467 -428 -196 -114 -49 --- --- --- --- -5,422 B. Expensing - Increase in Expensing of Certain Depreciable Business Assets (sunset 12/31/10)……… tyba 12/31/09 --- -556 -368 305 192 140 108 68 39 19 9 8 -35 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 C. Qualified Tax Credit Bonds - Allow a Refundable Credit to the Issuers of Qualified Zone Academy Bonds, Qualified School Construction Bonds, New Clean Renewable Energy Bonds, and Qualified Energy Credit Bonds (Refundable at 100% of Applicable Tax Credit Bond Rate) [25]..................... bia DOE --- -81 -559 -813 -895 -713 -550 -393 -260 -159 -81 -57 -4,561 D. Revenue Provisions Contained in Extension of Current Surface Transportation Programs - Extend Highway Trust Fund (sunset 12/31/10), Provide for Interest and Certain Fund Transfers [26]……………… DOE --- - Revenue Effect - - - - - - - - - - - - - - - E Offset Provisions - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No - - - - - - - - - - - - - - - - - - - - - - - - - E. 1. Foreign account tax compliance……………………… various --- 343 448 710 769 804 840 878 917 958 1,001 1046 8,714 2. Delay implementation of worldwide interest allocation until 2021................................................... tyba 12/31/17 --- --- --- --- --- --- 12 97 131 1,897 3,811 3,963 9,911 3. Increase the required corporate estimated tax payments due in July, August, and September 2014 to 157.75% of the payment otherwise due for corporations with assets of at least $1 billion [27].................................................................. DOE --- --- --- --- --- 13,611 -13,611 --- --- --- --- --- --- 4. Increase the required corporate estimated tax payments due in July, August, and September 2015 to 121.5% of the payment otherwise due for corporations with assets of at least 7 $1 billi DOE 13 267 13 267 71 billion.......................................................................... --- --- --- --- --- --- 13,267 -13,267 --- --- --- --- --- 12 , , 5. Increase the required corporate estimated tax payments due in July, August, and September 2019 to 106.5% of the payment otherwise due for corporations with assets of at least $1 billion.......................................................................... DOE --- --- --- --- --- --- --- --- --- --- 4,428 -4,428 --- TOTAL OF PART SEVEN………………………………………………………… --- -4,478 -6,080 -2,265 -362 13,646 -48 -12,666 827 2,715 9,168 532 991 PART EIGHT: HEALTH CARE PROVISIONS I. THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (P.L. 111-148 signed into law by the President on March 23, 2010) IN COMBINATION WITH THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010 (P.L. 111-152, signed into law by the President on March 30, 2010) THE PATIENT PROTECTION AND AFFORDABLE CARE ACT Title I. Quality, Affordable Health Care for All Americans 1. Tax exemption for certain member-run health insurance issuers......................................................... DOE ---- - - - - - - - - 2 Tax exemption for entities established pursuant to - - - - - - - - - Estimate Provided by the Congressional Budget Office in Collaboration with the Joint Committee on Taxation [28] 2. transitional reinsurance program for individual market in each State.................................................... DOE --- 28] 3 R f d bl di idi i i - - - - - - - - - Estimate Provided by the Congressional Budget Office in Collaboration with the Joint Committee on Taxation [- - - - - - - - 3. Refundable tax credit providing premium assistance for coverage under a qualified health plan................. tyea 12/31/13 --- --- --- --- --- -5,000 -11,000 -18,000 -22,000 -24,000 -26,000 --- -107,000 4. Reduced cost-sharing for individuals enrolling in qualified health plans.................................................. DOE ---- - - - - - - - - Estimate Provided by the Congressional Budget Office in - - - - - - - - 5 Disclosures to carry out Collaboration with the Joint Committee on Taxation [28] 5. eligibility requirements for certain programs......................................................... DOE ---- - - - - - - - - Estimate Provided by the Congressional Budget Office in Collaboration with the Joint Committee on Taxation [28] - - - - - - - - Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 6. Premium tax credit and cost-sharing reduction payments disregarded for Federal and federally assisted programs........................................................ DOE ---- - - - - - - - - 7 S llb i t dit t b 12/31/2 000 4 000 5 000 6 000 5 000 4 000 3 000 3 000 4 000 4 000 40 000 - - - - - - - - - Estimate Provided by the Congressional Budget Office in Collaboration with the Joint Committee on Taxation [28] 7. Small business tax credit............................................ tyba 09 --- -2,000 -4,000 -5,000 -6,000 -5,000 -4,000 -3,000 -3,000 -4,000 -4,000 --- -40,000 8. Excise tax on individuals without essential health benefits coverage........................................................ tyba 12/31/13 --- --- --- --- --- --- 2,000 3,000 4,000 4,000 4,000 --- 17,000 9. Reporting of health insurance coverage..................... cyba 2013 ---- - - - - - - - - Estimate Provided by the Congressional Budget Office in - - - - - - - - 10 Shared employers 12/--- --- --- --- --- 3 000 8 000 10 000 10 000 10 000 11 000 --- 52 000 Collaboration with the Joint Committee on Taxation [28] 10. responsibility for employers........................... mba 31/13 3,000 8,000 10,000 10,000 10,000 11,000 52,000 11. Reporting of employer health insurance coverage..... pba 12/31/13 ---- - - - - - - - - Estimate Provided by the Congressional Budget Office in Collaboration with the Joint Committee on Taxation [ 28] - - - - - - - - 12. Offering y g g ff ] of qualified health plans through cafeteria plans............................................................................ tyba 12/31/13 ---- - - - - - - - - Estimate Provided by the Congressional Budget Office in Collaboration with the Joint Committee on Taxation [28] - - - - - - - - 13. Conforming amendments........................................... DOE ---- - - - - - - - - Estimate Provided by the Congressional Budget Office in - - - - - - - - Title III Improving the Quality and Efficiency of Health Care Collaboration with the Joint Committee on Taxation [28] III. 1. Disclosures to carry out the reduction of Medicare Part D subsidies for high income beneficiaries.......... DOE ---- - - - - - - - - Title VI Transparency and Program Integrity - - - - - - - - - Estimate Provided by the Congressional Budget Office in Collaboration with the Joint Committee on Taxation [28] VI. 1. Impose Fee on Insured and Self-Insured Health Plans; Patient- Centered Outcomes Research Trust Fund…………………………………………………… [29] --- --- --- --- 110 267 325 360 418 512 659 --- 2,649 Title IX. Revenue Provisions 1. 40% excise tax on health coverage in excess of $10,200/$27,500 (subject to adjustment for unexpected increase in medical costs prior to 7 ff i d ) d i d h h ld f 71 effective date) and increased thresholds of 13 $1,650/$3,450 for over age 55 retirees or certain high-risk professions, both indexed for inflation by CPI-U plus 1%; adjustment based on age and gender profile of employees; vision and dental excluded from excise tax; levied at insurer level; employer aggregates and issues information return for insurers indicating amount subject to the excise tax; nondeductible [30]............................................... tyba 12/31/17 --- --- --- --- --- --- --- --- --- 12,200 19,800 --- 32,000 2. Employer W-2 reporting of value of health benefits........................................................................ tyba 12/31/10 ---- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3 Conform g g ff 3. the definition of medical expenses for health savings accounts, Archer MSAs, health flexible spending arrangements, and health reimbursement arrangements to the definition of the itemized deduction for medical expenses (excluding over-the-counter medicines prescribed by a physician)............................................................ eia 12/31/10 --- --- 400 600 600 600 600 600 600 600 600 --- 5,000 4. Increase in additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses to 20%............................................ dma 12/31/10 --- --- [31] [31] 100 100 100 200 200 300 300 --- 1,400 5. Limit health flexible spending arrangements in cafeteria plans to $2,500; indexed to CPI-U after 2013 [30] [32]..................................................... tyba 12/31/12 --- --- --- --- 1,500 2,100 2,100 2,000 1,900 1,700 1,700 --- 13,000 6. Require information reporting on payments to corporations................................................................ pma 12/31/11 --- --- --- 400 3,300 2,000 2,100 2,200 2,300 2,400 2,500 --- 17,100 7. Additional requirements for section 501(c)(3) hospitals...................................................................... tyba DOE --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 8. Impose annual fee on manufacturers and importers of branded drugs ($2.5 billion for 2011, $2.8 billion per year for 2012 and 2013, $3.0 billion per year for 2014 through 2016, $4.0 billion for 2017, $4.1 billion for 2018, and $2.8 billion for 2019 and thereafter) [30]............................................................ cyba 12/31/10 --- --- 2,200 2,900 2,900 2,900 2,900 2,900 3,400 4,000 2,900 --- 27,000 9. Impose annual fee on manufacturers and importers of certain medical devices ($2 billion per year for 2011 through 2017; and $3 billion per year thereafter).................................................................... DOE --- - Enactment of the "Health Care Education Reconciliation Act of 2010" - - - - 10 annual - - - - - - - - - - - - - - - Provision Repealed by 2010 - - - - - - - - - - - 10. Impose fee on health insurance providers ($8 billion in 2014, $11.3 billion in 2015 and 2016, $13.9 billion in 2017, $14.3 billion in 2018, and indexed to medical cost growth thereafter) [30]......... [33] --- --- --- --- --- 6,100 9,300 9,500 11,400 11,700 12,100 --- 60,100 11. Study and report of effect on veterans health care..... DOE --- - Revenue Effect - - - - - - - - - - - - - - - - 12 Eliminate deduction to - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No - - - - - - - - - - - - - - - - - - - - - - - - - 12. for expenses allocable Medicare Part D subsidy [30]..................................... tyba 12/31/12 --- --- --- --- 400 600 600 600 700 700 800 --- 4,500 13. Raise 7.5% AGI floor on medical expenses deduction to 10%; AGI floor for individuals age 65 and older (and their spouses) remains at 7.5% through 2016............................................................... tyba 12/31/12 --- --- --- --- 400 1,500 1,600 1,700 2,500 3,700 3,900 --- 15,200 14. $500,000 deduction limitation on taxable year remuneration officers employees directors 7 to officers, employees, directors, d i id f dh lhi 71 and service providers of covered health insurance 14 p providers..................................................................... [34] --- --- --- --- 100 100 100 100 100 100 100 --- 600 15. Broaden Medicare Hospital Insurance Tax Base for High-Income Taxpayers - additional HI tax of of 0.9% on earned income in excess of $200,000/$250,000 (unindexed)................................. tyba 12/31/12 --- --- --- --- 13,300 6,000 10,400 13,100 14,100 14,700 15,200 --- 86,800 16. Modification of section 833 treatment of certain health organizations.................................................... tyba 12/31/09 --- [31] 100 100 [31] [31] [31] [31] [31] [31] [31] --- 400 17. Impose 10% excise tax on indoor tanning services.... tspo/a 7/1/10 --- [31] 200 200 300 300 300 300 300 300 300 --- 2,700 18. Provide income exclusion for specified Indian tribe health benefits.................................................... [35] --- --- [36] [36] [36] [36] [36] [36] [36] [36] [36] --- [36] 19. Simple cafeteria plan nondiscrimination safe harbor for certain small employers............................. tyba 12/31/10 --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 20. Qualifying therapeutic discovery project credit (sunset 12/31/10)........................................................ [37] --- -400 -200 -100 -100 [36] [36] --- --- --- --- --- -900 Title X. Strengthening Qualify, Affordable Health Care for All Americans 1. Study of geographic variation in application of FPL............................................................................. DOE --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 Free choice vouchers after 31/13 Effect 2. vouchers.................................................. 12/--- 28] l i f i id d i i i - - - - - - - - - Estimate Provided by the Congressional Budget Office in Collaboration with the Joint Committee on Taxation [- - - - - - - - 3. Exclusion for assistance provided to participants in State student loan repayment programs for certain health professionals.................................................... tyba 12/31/08 --- [36] [36] [36] [36] [36] [36] [36] [36] [36] [36] --- -100 4. Make the adoption credit refundable; increase qualifying expenses threshold, and extend the adoption credit through 2011...................................... tyba 12/31/09 --- -168 -586 -452 [31] --- --- --- --- --- --- --- -1,206 THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010 1. Adult dependents........................................................ DOE ---- - - - - - - - - Estimate Provided by the Congressional Budget Office in Collaboration with the Joint Committee on Taxation [28] - - - - - - - - Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 2. Unearned Income Medicare Contribution on 3.8% on investment income for taxpayers with AGI in excess of $200,000/$250,000 (unindexed)................. tyba 12/31/12 --- --- --- 1,300 7,200 10,600 18,900 19,600 20,700 21,900 23,300 --- 123,400 3. Impose 2.3% excise tax on manufacturers and importers of certain medical devices.......................... sa 12/31/12 --- --- --- --- 1,800 2,700 2,800 3,000 3,100 3,200 3,400 --- 20,000 4. Exclusion of unprocessed fuels from the cellulosic biofuel producer credit................................................ fsouo/a 1/1/10 --- --- 6,600 6,500 5,500 3,000 1,500 400 --- --- --- --- 23,600 5. Codify economic substance doctrine and impose penalties for underpayments....................................... teia DOE --- 67 316 409 471 505 523 536 551 566 601 --- 4,545 6. Increase by 15.75 percentage points the required corporate estimated tax payments factor for corporations with assets of at least $1 billion for payments due in July, August, and September 2014............................................................................ DOE --- --- --- --- --- 8,800 -8,800 --- --- --- --- --- --- II. CLARIFICATION THAT THE HEALTH CARE PROVIDED BY THE SECRETARY OF VETERANS AFFAIRS CONSTITUTES MINIMUM ESSENTIAL COVERAGE - (P.L. 111-173, signed into law by the President on May 27, 2010)……………………………… [38] --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - III. MEDICARE ff AND MEDICAID EXTENDERS ACT OF 2010 - LIMITATIONS ON AGGREGATE AMOUNT RECOVERED ON RECONCILIATION OF THE HEALTH INSURANCE TAX CREDIT AND 7 THE ADVANCE OF THAT CREDIT P L 111 309 71 P.L. 111-309, 15 ( , signed into law by the President on December 15, 2010) [1] [25]……………………………………………… tyba 12/31/13 --- --- --- --- --- 546 1416 2425 3181 3533 3787 4106 18,995 TOTAL OF PART EIGHT………………………………………………………… --- -2,501 5,030 6,857 31,881 41,718 41,764 51,521 54,450 68,111 76,947 4,106 378,783 PART NINE: PRESERVATION OF ACCESS TO CARE FOR MEDICARE BENEFICIARIES AND PENSION RELIEF ACT OF 2010 COVERAGE (P.L. 111-192, signed into law by the President on June 25, 2010) A. Authority to Disclose Return Information Concerning Outstanding Tax Debts for Purposes of Enhancing Medicare Program Integrity [5] [25]........ DOE --- --- --- 38 38 50 50 50 50 50 50 50 425 B. Pension Funding Relief 1. Single-employer plans [39]........................................ various --- 110 777 1,595 1,524 859 468 239 -134 -1,006 -1,743 -1,380 1,309 2. Multiemployer plans [39]........................................... various --- 9 34 56 79 99 117 134 132 99 40 -2 797 TOTAL OF PART NINE………………………………………………………… --- 119 811 1,689 1,641 1,008 635 423 48 -857 -1,653 -1,332 2,531 PART TEN: THE HOMEBUYER ASSISTANCE AND IMPROVEMENT ACT OF 2010 (P.L. 111-198, signed into law by the President on July 2, 2010) A. Extend the Time for Closing on a Principal Residence Eligible for the First-Time Homebuyer Credit (Sunset 9/30/10)............................................... rpa 6/30/10 --- -26 -114 --- --- --- --- --- --- --- --- --- -140 B. Revenue Offsets 1. Application of bad checks penalty to electronic payments..................................................................... ita DOE --- 1 4 4 4 5 5 5 5 5 5 5 48 2. Disclosure of prisoner return information to State prisons [40]........................................................ Dma DOE --- [4] [4] [4] 1 1 1 1 1 1 1 1 6 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 3. Amendment of the Travel Promotion Act of 2009 [5] [10]............................................................... DOE --- 6 -14 -6 23 7 120 -30 -10 --- --- --- 95 TOTAL OF PART TEN…………………………………………………………… --- -19 -124 -2 28 13 126 -24 -4 6 6 6 9 PART ELEVEN: THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT - CERTAIN SWAPS, ETC., NOT TREATED AS SECTION 1256 CONTRACTS (P.L. 111-203, signed into law by the President on July 21, 2010)……………………… tyba DOE --- --- 1 6 7 8 11 13 15 18 19 21 120 PART TWELVE: THE _____ ACT OF _____ (P.L. 111-226, signed into law by the President on August 10, 2010) A. Rules to Prevent Splitting Foreign Tax Credits generally from the Income to Which They Relate..................... fitpoaa 12/31/10 --- --- 170 240 375 390 575 600 550 500 450 400 4,250 B. Denial of Foreign Tax Credit With Respect to Foreign Income Not Subject to United States Taxation by generally Reason of Covered Asset Acquisitions...................... caaa 12/31/10 --- --- 45 400 400 400 400 400 400 400 400 400 3,645 C. Separate Application of Foreign Tax Credit Limitation, etc., to Items Resourced Under Treaties....................................................................... tyba DOE --- --- 25 25 25 25 25 25 25 25 25 25 250 D Li it ti th A t f F i T D d 7 D. Limitation on the Amount of Foreign Taxes Deemed 71 g Paid [41] --- --- 5 20 40 60 80 99 100 100 100 100 704 16 with Respect to Section 956 Inclusions.............. E Special Rule with Respect to Certain Redemptions 6 E. by Foreign Subsidiaries.............................................. aa DOE --- --- 25 25 25 25 25 25 25 25 25 25 250 F. Modification of Affiliation Rules for Purposes of Rules Allocating Interest Expense.............................. tyba DOE --- --- 225 150 10 5 [4] [4] [4] [4] [4] [4] 390 G. Termination of Special Rules for Interest and Dividends Received from Persons Meeting the generally 80% Foreign Business Requirements......................... tyba 12/31/10 --- --- 1 2 6 9 12 15 21 25 29 33 153 H. Limitation on Extension of Statute of Limitations for Failure to Disclose Certain Foreign Transactions...... [42] --- --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I. Elimination of Advanced Refundability of Earned ff Income Credit ............................................................ tyba 12/31/10 --- --- 153 122 102 102 103 105 107 110 112 114 1,131 TOTAL OF PART TWELVE……………………………………………………… --- --- 649 984 983 1,016 1,220 1,269 1,228 1,185 1,141 1,097 10,773 PART THIRTEEN: THE FIREARMS EXCISE TAX IMPROVEMENT ACT OF 2010 (P.L. 111-237, signed into law by the President on August 17, 2010) A. Time For Payment Of Manufacturers' Excise Tax On Recreational Equipment [43]................................ [44] --- -82 31 29 10 5 1 1 1 [4] [4] [11] -5 B. Assessment Of Certain Criminal Restitution.............. [45] --- [4] 1 1 1 1 1 1 1 1 1 1 9 C. Increase by 0.25 Percentage Points the Required Corporate Estimated Tax Payments Factor for Corporations with Assets of at Least $1 Billion for Payments Due in July, August, and September 2015............................................................................ DOE --- --- --- --- --- --- 153 -153 --- --- --- --- --- TOTAL OF PART THIRTEEN…………………………………………………… --- -82 32 30 11 6 155 -151 2 1 1 1 4 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 PART FOURTEEN: THE SMALL BUSINESS JOBS ACT OF 2010 (P.L. 111-240, signed into law by the President on September 27, 2010) I. Small Business Relief A. Providing Access to Capital 1. Modification to exclusion for gain from certain small business stock (sunset 12/31/10)....................... saa DOE --- --- 2 --- --- --- -276 -155 -34 -26 -17 -9 -518 2. Five-year carryback of general business credit of eligible small business (sunset 12/31/10)............... [46] --- --- -1,440 241 192 180 156 144 132 114 96 78 -107 3. General business credits of eligible small business not subject to alternative minimum tax (sunset 12/31/10).................................................. [46] --- --- -1,031 8 4 4 3 5 6 4 7 12 -977 4. Reduction in recognition period for built-in gains tax (sunset 12/31/11)......................................... tyba 12/31/10 --- --- -45 -23 -2 --- --- --- --- --- --- --- -70 B. Encouraging Investment 1. Expand definition of eligible section 179 property to include certain real property and increase maximum amount and phase-out thresholds to $500,000 and $2,000,000, tyba 12/31/09 respectively................................................................. & before 1/1/12 --- --- -9,735 -3,024 3,441 2,280 1,705 1,291 838 509 302 215 -2,177 2. One-year extension of bonus depreciation................. ppisa 12/31/09 --- --- -40,065 10,571 7,120 5,620 4,427 2,848 1,736 981 668 641 -5,454 3. Special rule for long-term contract accounting.......... ppisa 12/31/09 --- --- -1,785 751 463 276 163 82 38 12 --- --- --- C Promoting Entrepreneurship 7 C. 1I i ll d dd i f 71 1. Increase in amount allowed as a deduction for 17 start-up expenditures................................................... apoii tyba 12/31/09 --- --- -347 4 18 17 16 15 14 13 11 9 -230 D. Promoting Small Business Fairness 1. Limitation on penalty for failure to disclose reportable transactions based on resulting tax benefits........................................................................ paa 12/31/06 --- --- -85 -21 -16 -8 -8 -8 -8 -8 -8 -8 -176 2. Deduction for health insurance costs in tyba 12/31/09 & computing self-employment taxes [47]...................... before 1/1/11 --- --- -1,754 -165 --- --- --- --- --- --- --- --- -1,919 3. Remove cellular telephones and similar telecommunications equipment from listed property....................................................................... tyba 12/31/09 --- --- -29 -25 -31 -34 -38 -42 -46 -51 -55 -59 -410 II. Revenue Provisions A. Reducing the Tax Gap 1. Require information reporting for rental property expense payments........................................ pma 12/31/10 --- --- [48] 227 247 259 269 284 294 309 324 335 2,546 2. Increase penalties related to information returns and payee statements.................................................. rtbfo/a 1/1/11 --- --- 30 41 42 42 43 43 43 44 45 47 421 3. Annual reports on certain penalties and other enforcement tools....................................................... DOE [49] --- --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4 Effect 4. Application of continuous levy to tax liabilities of certain Federal contractors..................................... lia DOE --- --- 127 98 100 102 104 106 108 110 112 114 1,080 B. Promoting Retirement Preparation 1. Allow participants in governmental 457 plans to treat elective deferrals as Roth contributions........... tyba 12/31/10 --- --- 12 17 25 36 48 56 60 69 83 100 506 2. Allow rollovers from elective deferral plans to Roth designated accounts........................................... da DOE --- --- 226 529 486 389 487 596 711 661 494 520 5,099 3. Permit partial annuitization of a nonqualified annuity contract.......................................................... tyba 12/31/10 --- --- 5 20 37 56 77 99 124 149 179 210 956 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 C. Closing Unintended Loopholes 1. Crude tall oil ineligible for cellulosic biofuel producer credit............................................................ fsouo/a 1/1/10 --- --- 523 512 425 237 118 34 --- --- --- --- 1,849 2. Source rules for income on guarantees....................... gia DOE --- --- 200 200 200 200 200 200 200 200 200 200 2,000 D. Increase by 36 percentage points the required corporate estimated tax payments factor for corporations with assets of at least $1 billion for payments due in July, August, and September 2015 [50]..................................................................... DOE --- --- --- --- --- --- 21,234 -21,234 --- --- --- --- --- TOTAL OF PART FOURTEEN………………………………………………… --- --- -55,191 9,961 12,751 9,656 28,728 -15,636 4,216 3,090 2,441 2,405 2,419 PART FIFTEEN: THE CLAIMS RESOLUTION ACT OF 2010 (P.L. 111-291, signed into law by the President on December 8, 2010) A. The Individual Indian Money Account Litigation...... DOE --- --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - B Collection Due ff B. of Past-Due, Legally Enforceable State Debts [25] [51]............................................................ [52] --- --- --- 1,308 960 211 7 -67 -60 -28 152 178 2,662 TOTAL OF PART FIFTEEN……………………………………………………… --- --- --- 1,308 960 211 7 -67 -60 -28 152 178 2,662 PART SIXTEEN: THE TAX RELIEF, UNEMPLOYMENT INSURANCE REAUTHORIZATION, AND JOB 7 CREATION ACT OF 2010 P L 111 312 718 (P.L. 111-312, signed into law b h P id D b 17 8 by the President on December 17, 2010) I. Temporary Extension of Tax Relief A. Marginal Individual Income Tax Rate Reductions 1. Retain 10% income tax bracket (sunset 12/31/12) [25].............................................................................. tyba 12/31/10 --- --- -30,990 -44,807 -13,511 [11] --- --- --- --- --- --- -89,308 2. Retain the 25% and the 28% income tax brackets (sunset 12/31/12)........................................................ tyba 12/31/10 --- --- -12,792 -18,376 -5,526 [11] --- --- --- --- --- --- -36,693 3. Retain the 33% and the 35% income tax brackets (sunset 12/31/12)........................................................ tyba 12/31/10 --- --- -19,714 -31,276 -9,783 [11] --- --- --- --- --- --- -60,774 B. Repeal Overall Limitation on Itemized Deduction and the Personal Exemption Phaseout (sunset 12/31/12)..................................................................... tyba 12/31/10 --- --- -4,862 -10,384 -5,489 [11] --- --- --- --- --- --- -20,735 C. Child Tax Credit - retain the child tax credit at $1,000; refundable up to greater of 15% of earned income in excess of $10,000 (indexed from 2001) or the taxpayer's social security tax liability to the extent that it exceeds the taxpayer's earned income credit; allow credit against the AMT; repeal AMT offset of refundable credits (sunset 12/31/12) [25].... tyba 12/31/10 --- --- -7,075 -35,565 -29,056 --- --- --- --- --- --- --- -71,697 D. Marriage Penalty Relief and Earned Income Tax Credit Simplification 1. Standard deduction and 15% rate bracket set at 2 times single for married filing jointly (sunset 12/31/12) [25]............................................................. tyba 12/31/10 --- --- -6,287 -8,962 -2,686 [11] --- --- --- --- --- --- -17,935 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 2. EIC modification and simplification - increase in joint returns beginning and ending income level for phaseout by $3,000 indexed after 2008; simplify definition of earned income; use AGI instead of modified AGI; simplify definition of qualifying child and tie-breaker rules; and allow math error procedure with Federal Case registry data beginning in 2004 (sunset 12/31/12) [25].................. tyba 12/31/10 --- --- -44 -4,424 -4,469 --- --- --- --- --- --- --- -8,937 E. Education Incentives 1. Coverdell Education Savings Accounts ("ESAs") - increase the annual contribution limit to $2,000; allow ESA contributions for special needs beneficiaries above the age of 18; allow corporations and other entities to contribute to ESAs; allow contributions until April 15 of the following year; allow a taxpayer to exclude ESA distributions from gross income and claim the HOPE or Lifetime Learning credits as long as they are not used for the same expenses; repeal excise tax on contributions made to ESA when contribution made by anyone on behalf of same beneficiary to QTP; modify phaseout range for married allow tax expenditures for 7 taxpayers; tax-free l d d h l 71 elementary and secondary school expenses; 19 y y p ; expand the definition of qualified expenses to include certain computers and related items (sunset 12/31/12)..................................................................... tyba 12/31/10 --- --- -11 -17 -5 --- --- --- --- --- --- --- -32 2. Employer provided educational assistance - extend the exclusion for undergraduate courses and graduate level courses (sunset 12/31/12) [53]............ cba 12/31/10 --- --- -707 -964 -243 --- --- --- --- --- --- --- -1,914 3. Student loan interest deduction - eliminate the 60-month rule and the disallowance for voluntary payments; increase phaseout ranges to $50,000-$65,000 single/ $100,000-$130,000 joint, indexed for inflation (sunset 12/31/12)...................... ipa 12/31/10 --- --- -63 -631 -560 --- --- --- --- --- --- --- -1,254 4. Eliminate the tax on awards under the National Health Service Corps Scholarship program and F. Edward Hebert Armed Forces Health Professions Scholarship and Financial Assistance Program (sunset 12/31/12)........................................................ tyba 12/31/10 --- --- -9 -35 -27 --- --- --- --- --- --- --- -70 5. Increase arbitrage rebate exception for governmental bonds used to finance qualified school construction from $10 million to $15 million (sunset 12/31/12)........................................................ bia 12/31/10 --- --- [11] -1 -2 -3 -3 -3 -3 -3 -3 -3 -24 6. Issuance of tax-exempt private activity bonds for qualified education facilities with annual State volume caps the greater of $10 per resident or $5 million (sunset 12/31/12)............................................ bia 12/31/10 --- --- [11] -1 -3 -5 -5 -5 -5 -5 -5 -5 -39 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 F. Other Incentives for Families and Children 1. Dependent care tax credit - increase the credit rate to 35%, increase the eligible expenses to $3,000 for one child and $6,000 for two or more children (not indexed), and increase the start of the phase-out to $15,000 of AGI (sunset 12/31/12) [25]...................... tyba 12/31/10 --- --- -76 -302 -222 --- --- --- --- --- --- --- -600 2. Adoption credit - increase the expense limit and the exclusion to $10,000 for both non-special needs and special needs adoptions, make the credit independent of expenses for special needs adoptions, extend the credit and the exclusion, increase the phase-out start point to $150,000, index for inflation the expenses limit and the phase-out start point for both the credit and the exclusion, and allow the credit to apply to the AMT (sunset 12/31/12) [25]............................................................. tyba 12/31/10 --- --- --- -95 -221 --- --- --- --- --- --- --- -315 3. Employer-provided child care credit of 25% for childcare expenditures and 10% for child care resource (sunset 12/31/12).......................................... tyba 12/31/10 --- --- -11 -33 -15 --- --- --- --- --- --- --- -58 G. Allow Electing Alaska Native Settlement Trusts to Tax Income to the Trust not the Beneficiaries (sunset 12/31/12)........................................................ tyba 12/31/10 --- --- -2 -5 -2 --- --- --- --- --- --- --- -9 H Reduced on Dividends and Capital Gains 7 H. Rate 1 T i l i i h 72 1. Tax capital gains with a 0%/15% rate structure 20 p g (sunset 12/31/12)........................................................ tyba 12/31/10 --- --- -10,477 2,355 -1,915 -15,840 --- --- --- --- --- --- -25,877 2. Tax dividends with a 0%/15% rate structure (sunset 12/31/12)..................................................................... tyba 12/31/10 --- --- -4,677 -13,555 -9,042 --- --- --- --- --- --- --- -27,274 I. Extension of American Opportunity Tax Credit (sunset 12/31/12) [25]...................................... tyba 12/31/10 --- --- -1,194 -7,094 -9,277 --- --- --- --- --- --- --- -17,566 J. Reduce the Earnings Threshold for the Refundable Portion of the Child Tax Credit to $3,000 (sunset 12/31/12) [25]............................................................. tyba 12/31/10 --- --- --- -9,826 -9,917 --- --- --- --- --- --- --- -19,743 K. Earned Income Credit 1. Increase in earned income tax credit percentage (sunset 12/31/12) [25]................................................. tyba 12/31/10 --- --- -18 -1,845 -1,822 --- --- --- --- --- --- --- -3,685 2. EIC modification and simplification - increase in joint returns beginning and ending income level for phaseout by $5,000 indexed after 2008 (sunset 12/31/12) [25]............................................................. tyba 12/31/10 --- --- -16 -1,553 -1,532 --- --- --- --- --- --- --- -3,101 II. Temporary Alternative Minimum Tax Relief - Set the AMT Exemption Amount at $47,450 ($72,450 Joint) in 2010 and $48,450 ($74,450 Joint) in 2011 and Allow Personal Credits against the AMT (sunset 12/31/11)……… tyba 12/31/09 --- --- -85,833 -67,597 16,754 --- --- --- --- --- --- --- -136,676 III. Temporary Estate and Gift Tax Relief - $5 Million Unified and Indexed Exemption Amount; 35% Maximum Rate; Portability of Exemption Amount; and Decedents Dying in 2010 Can Elect into dda/gsta 12/31/09 EGTRRA (sunset 12/31/12)……………………………… & gma 12/31/10 --- --- -4,546 -28,050 -29,349 -3,483 -2,088 -981 -53 130 135 136 -68,149 IV. Temporary Extension of Investment Incentives A. Increase Additional First-Year Depreciation to 100 Percent (sunset 12/31/11); Extend 50 Percent Additional First-Year Depreciation for Property Placed in Service after 12/31/11 (sunset 12/31/12).... ppisa 9/8/10 --- --- -55,419 -54,422 2,687 25,519 19,778 15,671 11,161 7,071 4,297 2,775 -20,883 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 B. Election To Accelerate AMT Credit in Lieu of Additional First-Year Depreciation (sunset 12/31/12)..................................................................... [54] --- --- -11 -536 -212 37 29 19 13 9 7 6 -639 C. Section 179 Expensing Amounts and Threshold Limits $125,000/ $500,000 (sunset 12/31/12)............ tyba 12/31/11 --- --- --- -3,266 -2,160 1,791 1,131 822 636 401 227 110 -307 V. Temporary Extension of Unemployment Insurance and Related Matters [5] [25] [10]………………………… various --- --- -34,515 -21,642 -100 -102 -76 -41 -29 -4 --- --- -56,510 VI. Temporary Payroll Tax Reduction (Employee Side of OASDI) by 2 Percentage Points (sunset 12/31/11) [55]…… tyba 12/31/10 --- --- -67,239 -44,414 --- --- --- --- --- --- --- --- -111,653 VII. Temporary Extension of Certain Expiring Provisions A. Energy 1. Incentives for biodiesel and renewable diesel (sunset 12/31/11)..................................................................... fsoua 12/31/09 --- --- -1,677 -300 --- --- --- --- --- --- --- --- -1,977 2. Placed-in-service date for facilities eligible to claim the refined coal production credit (excluding steel industry fuel) (sec. 45(d)) (sunset 12/31/11).............. ppisa 12/31/09 --- --- -15 -20 -23 -24 -24 -24 -25 -26 -26 -24 -230 3. Credit for construction of energy efficient new homes (sunset 12/31/11)............................................. haa 12/31/09 --- --- -66 -25 -12 -11 -9 -8 -5 -1 --- --- -138 4. Incentives for alternative fuel and alternative fuel mixtures (modified to exclude black liquor) (sunset 12/31/11)........................................................ fsoua 12/31/09 --- --- -176 -26 --- --- --- --- --- --- --- --- -202 5. Special rule to implement electric transmission restructuring (sunset 12/31/11) 12/31/09 92 51 51 51 51 51 51 18 7 11)................................... Da --- --- -232 ---- --- 6 E i f i f 100 f 72 6. Extension of suspension of percent-of-net- 21 p p income limitation on percentage depletion for oil and natural gas from marginal properties (sunset 12/31/11)..................................................................... tyba 12/31/09 --- --- -182 -42 --- --- --- --- --- --- --- --- -224 7. Grants for specified energy property in lieu of tax credits (sunset 12/31/11) [25]..................................... ppisa DOE --- --- -1,941 -1,045 --- --- --- --- --- --- --- --- -2,987 8. Extension of provisions related to alcohol used as fuel (extension of present law): a. Extension of income tax credits for alcohol fuels; and extension of excise tax credits and outlay payments for alcohol fuel mixtures (sunset pa 12/31/10 & 12/31/11)................................................................ saua 12/31/10 --- --- -3,558 -1,311 --- --- --- --- --- --- --- --- -4,869 b. Extension of additional duties on ethanol (sunset 12/31/11) [5].............................................. 1/1/11 --- --- 8 3 --- --- --- --- --- --- --- --- 10 9. Credit for energy efficient appliances (sunset 12/31/11)..................................................................... apa 12/31/10 --- --- -7 -17 -14 -9 -8 -6 -5 -4 -4 -3 -78 10. Extension and modification of section 25C nonbusiness energy property (sunset 12/31/11)......... ppisa 12/31/10 --- --- -119 -477 --- --- --- --- --- --- --- --- -596 11. Alternative fuel vehicle refueling property (non-hydrogen refueling property) (sunset 12/31/11)..................................................................... ppisa 12/31/10 --- --- -7 -6 -2 -1 -1 [4] [4] [4] [4] [4] -16 B. Individual Tax Relief 1. Above-the-line deduction of up to $250 for teacher classroom expenses (sunset 12/31/11)........... tyba 12/31/09 --- --- -39 -195 -156 --- --- --- --- --- --- --- -390 2. Deduction of State and local general sales taxes (sunset 12/31/11)........................................................ tyba 12/31/09 --- --- -2,829 -2,393 -314 --- --- --- --- --- --- --- -5,536 3. Contributions of capital gain real property made for cmi qualified conservation purposes (sunset 12/31/11).... tyba 12/31/09 --- --- -63 -48 --- --- --- --- --- --- --- --- -111 4. Deduction for qualified tuition and related expenses (sunset 12/31/11) [56]................................. tyba 12/31/09 --- --- -711 -450 --- --- --- --- --- --- --- --- -1,161 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 5. Tax-free distributions from IRAs to certain public charities for individuals age 70 1/2 or older, not to exceed $100,000 per taxpayer per year; distributions made in January 2011 may count against the 2010 $100,000 limit and satisfy the 2010 minimum distribution requirement (sunset 12/31/11)................. dmi tyba 12/31/09 --- --- -517 -197 -29 -30 -31 -32 -34 -35 -36 -38 -979 6. Estate tax look-through for certain RIC stock held by nonresidents (sunset 12/31/11)...................... dda 12/31/09 --- --- -5 -5 --- --- --- --- --- --- --- --- -10 7. Parity for exclusion for employer-provided mass transit and parking benefits (sunset 12/31/11) [1]...... ma 12/31/10 --- --- -102 -34 --- --- --- --- --- --- --- --- -136 8. Refunds disregarded in the administration of Federal programs and federally assisted programs (sunset 12/31/12) [5] [25]....................................................... Ara 12/31/09 --- --- -4 -4 --- --- --- --- --- --- --- --- -8 C. Business Tax Relief 1. Tax credit for research and experimentation expenses (sunset 12/31/11)......................................... apoia 12/31/09 --- --- -5,984 -2,055 -923 -813 -715 -631 -575 -547 -530 -501 -13,272 2. Indian employment tax credit (sunset 12/31/11)........ tyba 12/31/09 --- --- -59 -33 -9 -1 --- --- --- --- --- --- -102 3. New markets tax credit ($3.5 billion allocation for 2010 and $3.5 billion allocation for 2011) (sunset 12/31/11)..................................................................... cyba 12/31/09 --- --- -5 -29 -94 -180 -221 -252 -279 -288 -267 -194 -1,810 4. 50% tax credit for certain expenditures for epoid maintaining railroad tracks (sunset 12/31/11)............ tyba 12/31/09 --- --- -232 -99 [11] --- --- --- --- --- --- --- -331 5 Mine rescue team training credit (sunset 11) 12/31/09 [11] [11] [11] 7 5. 12/31/11)... tyba --- --- -2 -1 -1 --- --- --- --- -5 6 E l di f i d ili 72 6. Employer wage credit for activated military 22 p y g y reservists (sunset 12/31/11)........................................ pma 12/31/09 --- --- -2 -1 [11] [11] [11] [11] [11] [11] [11] [11] -3 7. 15-year straight-line cost recovery for qualified leasehold, restaurant, and retail improvements and new restaurants (sunset 12/31/11).............................. ppisa 12/31/09 --- --- -281 -359 -397 -395 -389 -385 -380 -369 -350 -324 -3,629 8. 7-year recovery period for certain motorsports racing track facilities (sunset 12/31/11)...................... ppisa 12/31/09 --- --- -40 -3 -1 --- --- -1 1 3 3 3 -36 9. Accelerated depreciation for business property on Indian reservations (sunset 12/31/11).................... ppisa 12/31/09 --- --- -98 -23 5 17 27 22 12 1 -2 -1 -41 10. Enhanced charitable deduction for contributions of food inventory (sunset 12/31/11)........................... cma 12/31/09 --- --- -92 -42 --- --- --- --- --- --- --- --- -134 11. Enhanced charitable deduction for contributions of book inventories to public schools (sunset 12/31/11)..................................................................... cma 12/31/09 --- --- -37 -16 --- --- --- --- --- --- --- --- -53 12. Enhanced charitable deduction for corporate contributions of computer inventory for educational purposes (sunset 12/31/11)......................................... cmd tyba 12/31/09 --- --- -245 -105 --- --- --- --- --- --- --- --- -350 13. Election to expense mine safety equipment (sunset 12/31/11)..................................................................... ppisa 12/31/09 --- --- -20 1 5 4 3 3 2 1 [4] --- -1 14. Special expensing rules for certain film and television productions (sunset 12/31/11).................... qfatpca 12/31/09 --- --- -162 -158 39 45 34 29 23 21 16 12 -101 15. Expensing of "Brownfields" environmental remediation costs (sunset 12/31/11)........................... epoia 12/31/09 --- --- -493 -536 -66 83 91 86 77 67 57 50 -583 16. Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico (sunset 12/31/11)................................ tyba 12/31/09 --- --- -229 -186 --- --- --- --- --- --- --- --- -415 17. Modify tax treatment of certain payments under existing arrangements to controlling exempt organizations (sunset 12/31/11)..................... proaa 12/31/09 --- --- -34 -5 --- --- --- --- --- --- --- --- -40 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 18. Treatment of certain dividends of regulated investment companies ("RICs") (sunset 12/31/11)..... [57] --- --- -108 -66 --- --- --- --- --- --- --- --- -174 19. Extend the treatment of RICs as "qualified investment entities" under section 897 (FIRPTA) (sunset 12/31/11)........................................................ 1/1/10 --- --- -23 -36 --- --- --- --- --- --- --- --- -59 20. Exception under subpart F for active financing income (sunset 12/31/11)............................................ tyba 12/31/09 --- --- -5,200 -3,957 --- --- --- --- --- --- --- --- -9,157 21. Look-through treatment of payments between related CFCs under foreign personal holding company income rules (sunset 12/31/11)................... tyba 2009 --- --- -814 -691 --- --- --- --- --- --- --- --- -1,505 22. Basis adjustment to stock of S corporations making charitable contributions of property (sunset 12/31/11)........................................................ cmi tyba 12/31/09 --- --- -19 -36 -6 -3 -3 -3 -3 -3 -3 -3 -82 23. Empowerment zone tax incentives (sunset 12/31/11)..................................................................... pa 12/31/09 --- --- -330 -46 3 1 --- -4 -1 -4 -4 -4 -387 24. Tax incentives for investment in the District of Columbia (sunset 12/31/11)................................... pa 12/31/09 --- --- -88 -21 -2 -1 -4 -7 -4 -4 -4 -4 -138 25. Temporary increase in limit on cover over of rum excise tax revenues (from $10.50 to $13.25 per proof gallon) to Puerto Rico and the Virgin Islands (sunset 12/31/11) [58].................................... abiUSa 12/31/09 --- --- -235 -27 --- --- --- --- --- --- --- --- -262 26. Economic development credit for American Samoa (sunset 12/31/11) 12/31/09 15 12 27 7 11)............................................ tyba --- --- ----- --- --- --- --- --- --- --- -27 W k i di 12/31/11) ifib 8/[ 11] 16 72 27. Work opportunity tax credit ( sunset 11)........... wpoifibwa 31/11 --- --- -131 --8 -5 -2 --- --- --- --- -162 23 pp y ) p ] 28. Qualified zone academy bonds ($400 million allocation) (sunset 12/31/11)...................................... oia 12/31/10 --- --- [11] -3 -8 -16 -21 -22 -22 -21 -19 -19 -151 29. Premiums for mortgage insurance deductible as interest that is qualified residence interest (sunset 12/31/11)..................................................................... apoaa 12/31/10 --- --- -261 -87 --- --- --- --- --- --- --- --- -348 30. Special rules applicable to qualified small business stock (sunset 12/31/11)................................ saa 12/31/10 --- --- 15 6 --- --- -62 -768 -420 -97 -74 -47 -1,445 D. Temporary Disaster Relief Provisions 1. New York Liberty Zone - tax-exempt bond financing (sunset 12/31/11)........................................................ bia 12/31/09 --- --- -8 -12 -12 -12 -12 -12 -12 -12 -12 -12 -116 2. GO Zone: a. Increase in rehabilitation credit (sunset 12/31/11)................................................................ apoia 12/31/09 --- --- -39 -21 [11] 1 1 1 2 2 2 1 -50 b. Extend the placed-in-service deadline for GO Zone low-income housing credits (sunset 12/31/11)................................................................ ppisa 12/31/10 --- --- -8 -34 -34 -34 -34 -34 -34 -34 -34 -34 -314 c. Tax-exempt bond financing (sunset 12/31/11)....... DOE --- --- -5 -18 -26 -26 -26 -26 -25 -25 -25 -25 -226 d. Bonus depreciation for specified GO Zone extension property (sunset 12/31/11).................... ppisa 12/31/09 --- --- -171 -61 -4 -1 2 4 6 7 7 7 -202 TOTAL OF PART SIXTEEN……………………………………………………… --- --- -374,154 -422,910 -119,751 6,551 17,410 13,461 10,070 6,282 3,371 1,859 -857,806 PART SEVENTEEN: THE REGULATED INVESTMENT COMPANY MODERNIZATION ACT OF 2010 (P.L. 111-325, signed into law by the President on December 22, 2010) I. Capital Loss Carryovers of Regulated Investment Companies ("RICs")……………..………………………… [59] --- --- 3 22 34 39 43 48 53 59 65 -262 104 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 II. Modification of Gross Income and Asset Tests of RICs - savings provisions for failures of regulated investment companies to satisfy gross income and asset tests………… [60] --- --- [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] III. Modification of Rules Related to Dividends and Other Distributions A. Modification of Dividend Designation Requirements and Allocation Rules for RICs.................................... di tyba DOE --- --- [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] B. Earnings and Profits of RICs...................................... tyba DOE --- --- [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] C. Pass-Thru of Exempt-Interest Dividends and Foreign Tax Credits in Fund of Funds Structure..................... tyba DOE --- --- -2 -4 -4 -4 -4 -4 -4 -5 -5 -5 -41 D. Modification of Rules for Spillover Dividends of RICs............................................................................ di tyba DOE --- --- [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] E. Return of Capital Distributions of RICs..................... di tyba DOE --- --- [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] F. Distributions in Redemption of Stock of a RIC......... da DOE --- --- -5 -9 -9 -10 -10 -10 -11 -11 -12 -12 -99 G. Repeal Preferential Dividend Rule for Publicly Offered RICs............................................................... di tyba DOE --- --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - H. Elective Deferral of Certain Late-Year Losses of RICs............................................................................ tyba DOE --- --- [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] I. Exception to Holding Period Requirement for Certain Regularly Declared Exempt-Interest Dividends......... [61] --- --- [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] IV. Modifications Related to Excise Tax Applicable to RICs A Excise Tax Exemption RICs Owned by 7 A. for Certain T E E ii b 72 Tax Exempt Entities................................................... cyba DOE --- --- N li ibl R Eff 24 p y - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - B Deferral g g ff B. of Certain Gains and Losses of RICs for Excise Tax Purposes............................................. cyba DOE --- --- [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] C. Distributed Amount for Excise Tax Purposes Determined on Basis of Taxes Paid by RICs............. cyba DOE --- --- [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] D. Increase from 98% to 98.2% the Required Distribution Rate on Capital Gain Income by RICs... cyba DOE --- --- 29 23 10 4 4 4 4 4 4 5 92 V. Other Provisions A. Repeal of Assessable Penalty with Respect to Liability for Tax of RICs............................................ tyba DOE --- --- [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] [11] B. Modification of Sale Load Basis Deferral Rule for RICs............................................................................ cii tyba DOE --- --- -6 -8 -5 -2 -1 -1 -1 -1 -1 -1 -26 TOTAL OF PART SEVENTEEN………………………………………………… --- --- 19 24 26 27 32 37 41 46 51 -275 30 PART EIGHTEEN: THE OMNIBUS TRADE ACT OF 2010 (P.L. 111-344, signed into law by the President on December 29, 2010) A. Extension of Health Coverage Tax Credit Improvements (sunset 2/13/11) [25]........................... [62] --- --- -19 -11 --- --- --- --- --- --- --- --- -31 B. Increase by 4.5 Percentage Points the Required Corporate Estimated Tax Payments Factor for Corporations With Assets of at Least $1 Billion for Payments Due in July, August, and September 2015 [63]..................................................................... DOE --- --- --- --- --- --- 2,475 -2,475 --- --- --- --- --- TOTAL OF PART EIGHTEEN…………………………………………………… --- --- -19 -11 --- --- 2,475 -2,475 --- --- --- --- -31 Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 PART NINTEEN: THE JAMES ZADROGA 9/11 HEALTH AND COMPENSATION ACT OF 2010 - EXCISE TAX ON FOREIGN PROCUREMENT (P.L. 111-347, signed into law by the President on January 2, 2011)………………………………………………pruceio/a DOE --- --- 305 495 490 485 480 475 471 466 461 457 4,585 PART TWENTY: AUTHORITY OF TAX COURT TO APPOINT EMPLOYEES (P.L. 111-366, signed into law by the President on January 4, 2011)……………………………………………… [64] --- --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PART TWENTY-ONE: CUSTOMS USER FEES, CORPORATE ESTIMATED TAXES, AND EXTENSION OF ASSISTANCE FOR COBRA CONTINUATION COVERAGE [65] A. Extension of Customs User Fees [66]........................ various - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Estimated by the Congressional Budget Office - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - B. Modifications to Corporate Estimated Tax Payments 1. Repeal 2010, 2011, and 2013 corporate estimated tax adjustments and add new 0.25 percentage point adjustment for payments due in July, August, and September 2014; applies to corporations with assets of at least $1 billion (P L 111 42 7 P.L. 111-42, signed i l b h P id J l 28 2009 DOE 6 864 3 024 9 888 11 850 11 994 72 into law by the President on July 28, 2009................. --- 6,864 3,024 -9,888 -11,850 11,994 -144 --- --- --- --- --- --- 25 y y , , , , , , 2. Increase by 1.50 percentage points the required corporate estimated tax payments factor for corporations with assets of at least $1 billion for payments due in July, August, and September 2014 (P.L. 111-124, signed into law by the President on December 28, 2009..................................................... DOE --- --- --- --- --- 806 -806 --- --- --- --- --- --- 3. Increase the required corporate estimated tax payments otherwise due in July, August, or September 2014 by 0.75 percentage points and July, August, or September 2015 by 0.75 percentage points (P.L. 111-171, signed into law by the President on May 24, 2010)............................. DOE --- --- --- --- --- 356 107 -463 --- --- --- --- --- 4. Increase by 0.75 percentage points the required corporate estimated tax payments factor for corporations with assets of at least $1 billion for payments due in July, August, and September 2015 (P.L. 111-171, signed into law by the President on May 24, 2010)........................................ DOE --- --- --- --- --- --- 463 -463 --- --- --- --- --- 5. Increase by 0.25 percentage points the required corporate estimated tax payments factor for corporations with assets of at least $1 billion for payments due in July, August, and September 2015 (P.L. 111-210, signed into law by the President on August 11, 2010)................................... DOE --- --- --- --- --- --- 153 -153 --- --- --- --- --- Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 6. Increase by 0.50 percentage points the required corporate estimated tax payments factor for corporations with assets of at least $1 billion for payments due in July, August, and September 2015 (P.L. 111-227, signed into law by the President on August 11, 2010)................................... DOE --- --- --- --- --- --- 305 -305 --- --- --- --- --- 7. Increase by 4.5 percentage points the required corporate estimated tax payments factor for corporations with assets of at least $1 billion for payments due in July, August, and September 2015 (P.L. 111-344, signed into law by the President on December 29, 2010).............................................. DOE --- --- --- --- --- --- 2,475 -2,475 --- --- --- --- --- C. Extension of Assistance for COBRA Continuation Coverage 1. COBRA credit in Department of Defense Appropriations Act, 2010 (P.L. 111-118, signed into law by the President on December 19, 2009) [25].............................................................................. [67] --- -4,473 -1,673 -330 -15 --- --- --- --- --- --- --- -6,490 2. COBRA credit in the Temporary Extension Act of 2010 (P.L. 111-144, signed into law by the President on March 2, 2010) [25]............................... [68] --- -735 -339 -11 --- --- --- --- --- --- --- --- -1,085 3. COBRA credit in the Continuing Extension Act of 2010 (P L 111 157 7 P.L. 111-157, signed into law by the P id A il 15 25] [ 67] 1 391 21 2 054 72 President on April 15, 2010) [25]............................... --- -1,391 -642 ---- --- --- --- --- --- --- --- -2,054 26 p , )[ ] ] , , TOTAL OF PART TWENTY-ONE ……………………………………………… --- 265 370 -10,250 -11,865 13,156 2,553 -3,859 --- --- --- --- -9,629 Joint Committee on Taxation -------------------------------------- NOTE: Details may not add to totals due to rounding. [Legand and Footnotes for the Appendix appear on the following pages] Legend and Footnotes for the Appendix: Legend for "Effective" column: aa = acquisitions after Dma = disclosures made after pma = payments made after abiUSa = articles brought into the United States after dmi = distributions made in po/a = purchases on or after aiiUSa = articles imported into the United States after DOE = date of enactment ppisa = property placed in service after apa = appliances produced after eia = expenses incurred after proaa = payments received or accrued after apoaa = amounts paid or accrued after epoia = expenses paid or incurred after pruceio/a = payments received under contracts apoia = amounts paid or incurred after epoid = expenses paid or incurred during entered into on or after apoii = amounts paid or incurred in fitpoaa = foreign income taxes paid or accrued after qfatpca = qualified film and television ara = articles removed after fsoua = fuel sold or used after productions commencing after Ara = amounts received after fsouo/a = fuels sold or used on or after qhpa = qualified homes purchased after bia = bonds issued after gma = gifts made after ra = repurchases after caaa = covered asset acquisitions after gia = guarantees issued after rfa = returns filed after cba = courses beginning after haa = homes acquired after rpa = residences purchased after cii = charges incurred in ipa = interest paid after rtbfo/a = returns to be filed on or after cma = contributions made after ita = instruments tendered after sa = sales after cmd = contributions made during iwbwa = individuals who begin work after saa = stock acquired after cmi = contributions made in lia = levies issued after saua = sales and uses after cyba = calendar years beginning after ma = months after teia = transactions entered into after da = distributions after mba = months beginning after tspo/a = tanning services performed on or after Da = dispositions after mbo/a = months beginning on or after tyba = taxable years beginning after dda = decedents dying after = after = 7 oca ownership changes tybi taxable years beginning in = decedents dying generation oia = obligations issued after = 727 dda/gsta after and generation- tyea taxable years ending after 7 skipping transfers after pa = periods after wpa = wages paid after di = distributions in paa = penalties assessed after wpoifibwa = wages paid or incurred for individuals dma = distributions made after pba = periods beginning after beginning work after [1] Estimate includes the following off-budget effects: 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 Requirements for Group Health Plans…………………………………… --- -50 -100 -125 -125 -125 -125 -150 -150 -150 --- --- -1,100 Limitations on aggregate amount recovered on reconciliation of the health insurance tax credit and the advance of that credit……………… --- --- --- --- --- -14 -24 -40 -44 -49 -51 -52 -275 Parity for exclusion for employer-provided mass transit and parking benefits………………………………………………………………… --- --- -34 -11 --- --- --- --- --- --- --- --- -45 [2] Estimate does not include the following effects on Medicaid 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 outlays………………………………………………………………………… --- 30 60 70 70 80 90 90 100 110 --- --- 700 [3] The excise tax rates on tobacco products and cigarette papers and tubes would be as follows: Cigars weighing not more than three pounds per thousand ("small cigars")………………$50.33 per thousand ($1.0066 per pack) Cigars weighing more than three pounds per thousand ("large cigars")……………………52.75% of the manufacture's or importer's sales price but not more than $0.4026 per cigar Cigarettes weighing not more than three pounds per thousand ("small cigarettes")………$50.33 per thousand ($1.0066 per pack) Cigarettes weighing more than three pounds per thousand ("large cigarettes")……………$105.69 per thousand Cigarette papers……………………………………………………………………………$0.0315 for each 50 papers Cigarette tubes………………………………………………………………………………$0.0630 for each 50 tubes Snuff…………………………………………………………………………………………$1.51 per pound Chewing tobacco……………………………………………………………………………$0.5033 per pound Pipe tobacco…………………………………………………………………………………$2.8311 per pound Roll-your-own tobacco…………………………………………………………………… $24.78 per pound [4] Gain of less than $500,000. [5] Estimate provided by the Congressional Budget Office. [6] The study will be completed no later than one year after the date of enactment. [7] Increase by 0.5 percentage points the required corporate estimated tax payments factor for corporations with assets of at least $1 billion for payments due in July, August, and September 2013. [8] Estimated outlay effects as a result of U.S. possessions provision provided by the Joint Committee on Taxation in consultation with the Congressional Budget Office. [Footnotes for the Appendix are continued on the following pages] Footnotes for the Appendix continued: [9] Estimate includes interaction with Making Work Pay Credit and Additional Tax Relief for Families With Children. [10] This item does not have a separate description in the text of the document. [11] Loss of less than $500,000. [12] Estimate includes outlay effects provided by the Congressional Budget Office. [13] Effective for net operating losses generated in either a taxable year beginning in 2008 or a taxable year ending in 2008. [14] Effective for any unemployed veteran hired in 2009 and 2010 within five years (but not less than two months) of the date of discharge. [15] The temporary suspension of section 163(e)(5) applies to obligations issued after August 31, 2008, in taxable years ending after such date. The additional authority granted to the Secretary to use a rate higher than the applicable Federal rate for purposes of applying section 163(e)(5) applies to obligations issued after December 31, 2009, in taxable years ending after such date. [16] Modifications to the definitions of qualified energy property are effective for property placed in service after the date of enactment. [17] The neighborhood electric vehicle and motorcycle rule is effective for vehicles acquired after date of enactment. The elimination of neighborhood vehicles and heavy plug-ins from section 30D and the 200,000 vehicle/manufacturer cap is effective for vehicles acquired after December 31, 2009. [18] Estimate includes indirect effects of COBRA subsidy on Unemployment Insurance program. [19] We estimate that approximately 7 million people, including COBRA policyholders and their dependents, would benefit from this credit for some portion of 2009. [20] Effective for premiums for months of coverage beginning after the date of enactment. [21] Estimate includes indirect revenue effects of Trade Adjustment Assistance Reauthorization; estimate does not include outlay effects of TAA. [22] In general, the modifications apply to residences purchased after November 30, 2009. The waiver of recapture for individuals on qualified official extended duty applies to dispositions and cessations after December 31, 2008. The mathematical error authority applies to returns for taxable years ending on or after April 9, 2008. Provisions relating to long-time residents of the same principal residence, and income, purchase price, age, related party, dependent, and documentation limitations apply for purchases after the date of enactment. [23] Generally effective for net operating losses arising in taxable years ending after December 31, 2007. [24] The proposal also appropriates a transfer from the General Fund to the Social Security Trust Fund to keep the trust fund whole. Thus, the reported estimate is all on-budget. [25] 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 7 Estimate includes the following outlay effects: Qualified Bonds 98 694 1 091 1 314 1 441 1 441 1 441 1 441 1 441 1 441 1 441 13 284 728 Tax Credit Bonds……………………………………………… --- 1,091 1,314 1,441 1,441 1,441 1,441 1,441 1,441 1,441 13,284 8 Limitations on aggregate amount recovered on reconciliation of the health insurance tax credit and the advance of that credit……………… --- --- --- --- --- -610 -1,297 -2,167 -2,639 -2,893 -3,081 -3,283 -15,969 Authority to disclose return information concerning outstanding tax debts for purposes of enhancing Medicare Program Integrity [5]……… --- --- --- -38 -38 -50 -50 -50 -50 -50 -50 -50 -425 Collection of past-due, legally enforceable State debts [51]……………… --- --- --- -1,308 -1,076 -455 -337 -291 -270 -276 -416 -433 -4,863 Retain 10% bracket……………………………………………………… --- --- --- 1,198 1,239 --- --- --- --- --- --- --- 2,437 Retain the child tax credit at $1,000; refundable; AMT rules…………… --- --- --- 16,457 16,530 --- --- --- --- --- --- --- 32,987 Marriage penalty - standard deduction and 15% rate……………………… --- --- --- 2,000 2,030 --- --- --- --- --- --- --- 4,030 EIC modification and simplification ($3,000)…………………………… --- --- --- 3,724 3,781 --- --- --- --- --- --- --- 7,505 Dependent care tax credit………………………………………………… --- --- --- 49 146 --- --- --- --- --- --- --- 195 Adoption credit…………………………………………………………… --- --- --- --- 53 --- --- --- --- --- --- --- 53 American opportunity tax credit ………………………………………… --- --- --- 2,086 2,172 --- --- --- --- --- --- --- 4,258 Reduce the earnings threshold for the refundable portion of the child tax credit to $3,000…………………………………………………..… --- --- --- 9,826 9,917 --- --- --- --- --- --- --- 19,743 Increase in earned income tax credit percentage………………………… --- --- --- 1,694 1,688 --- --- --- --- --- --- --- 3,382 EIC modification and simplification ($5,000)…………………………… --- --- --- 1,270 1,250 --- --- --- --- --- --- --- 2,520 Temporary extension of unemployment insurance and related matters [5]……………………………………………………………… --- --- 34,515 21,565 --- --- --- --- --- --- --- --- 56,080 Grants for specified energy property in lieu of tax credits………………… --- --- 1,941 1,045 --- --- --- --- --- --- --- --- 2,987 Refunds disregarded in the administration of Federal programs and Federally assisted programs [5]………………………………………… --- --- 4 4 --- --- --- --- --- --- --- --- 8 Extension of health coverage tax credit improvements…………………… --- --- 15 9 --- --- --- --- --- --- --- --- 24 COBRA credit in DOD Act……………………………………………… --- --- --- 313 157 27 8 --- --- --- --- --- 504 COBRA credit in TEA…………………………………………………… --- --- --- 51 34 8 --- --- --- --- --- --- 94 COBRA credit in CEA…………………………………………………… --- --- --- 97 64 16 --- --- --- --- --- --- 177 [26] Estimates for the rest of this title were provided by the Congressional Budget Office. [27] Present law provides for a corporate estimated payments factor of 134.75 percent. [Footnotes for the Appendix are continued on the following page] Footnotes for the Appendix continued: [28] Estimate included with estimate of associated effects of coverage provisions on revenues and other revenue provisions as reported by the Congressional Budget Office, Congressional Budget Office, cost estimate for the amendment in the nature of a substitute for H.R. 4782, the "Reconciliation Act of 2010," incorporating a proposed manager’s amendment made public on March 20, 2010, available at http://www.cbo.gov/ftpdocs/113xx/doc11379/AmendReconProp.pdf. [29] The fee on health insurance and self-insurance plans is effective with respect to policies and plans for portions of policy or plan years beginning on or after October 1, 2012. [30] The description and revenue estimate of the provision reflects the modifications made by the "Health Care and Education Reconciliation Act of 2010." [31] Gain of less than $50 million. [32] Estimate includes interaction with the high premium excise tax. [33] Effective for calendar years beginning after December 31, 2013; fee is allocated based on market share of net premiums written for any United States health risk for calendar years beginning after December 31, 2012. [34] Effective for remuneration paid in taxable years beginning after 2012 with respect to services performed after 2009. [35] Effective for health benefits and coverage provided after the date of enactment. [36] Loss of less than $50 million. [37] Effective for expenditures paid or incurred after December 31, 2008, in taxable years beginning after December 31, 2008. [38] Effective as if included in section 1501(b) of the Patient Protection and Affordable Care Act. [39] Estimate does not include Congressional Budget Office outlay effects. These effects were provided by the Congressional Budget Office separately. [40] The provision amends Internal Revenue Code section 6103(k)(10), which sunsets December 31, 2011. Revenue effects after the sunset date are due to a decrease in the growth rate of prisoner fraud prior to the sunset. Although the present-law growth rate resumes after the sunset, the level of fraud remains lower due to preventive measures assumed to take place prior to the sunset. [41] Effective for acquisitions of U.S. property determined under section 956(c) after December 31, 2010. [42] Effective as if included in section 513 of the "Hiring Incentives to Restore Employment Act." [43] Estimate includes effects on outlays from the Pittman-Robertson Aid to Wildlife Trust Fund (provided by the Congressional Budget Office). [44] Effective for articles sold by the manufacturer, producer, or importer after the date of enactment. [45] Effective for 7 restitution ordered after the date of enactment. [46] Effective for first 31 2009 729 credits determined in the taxpayer’s taxable year beginning after December 31, 2009. 9 [47] Estimate includes effects on the Social Security trust fund. [48] Negligible revenue effect. [49] First report shall be submitted not later than December 31, 2010. [50] Estimate is based on a 36 percentage point increase to the 2015 corporate estimated tax shift under paragraph (2) of section 561 of the "Hiring Incentives to Restore Employment Act," in effect on September 16, 2010. [51] Estimate provided by the Joint Committee on Taxation in collaboration with the Congressional Budget Office. [52] Effective with respect to refunds under section 6402 payable on or after the date of enactment. [53] Estimate includes the following effects: 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 Total Revenue Effects…………………………………………………… --- --- -707 -964 -243 --- --- --- --- --- --- --- -1,914 On-budget effects……………………………………………………… --- --- -460 -653 -164 --- --- --- --- --- --- --- -1,277 Off-budget effects……………………………………………………… --- --- -246 -311 -79 --- --- --- --- --- --- --- -636 [54] Effective for property placed in service after December 31, 2010, in taxable years ending after such date. [55] Estimate includes the following effects: 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009-20 Total Revenue Effects…………………………………………………… --- --- -67,239 -44,414 --- --- --- --- --- --- --- --- -111,653 On-budget effects……………………………………………………… --- --- 1,293 1,274 --- --- --- --- --- --- --- --- 2,567 Off-budget effects……………………………………………………… --- --- -68,532 -45,688 --- --- --- --- --- --- --- --- -114,220 [56] Estimate includes interaction with the extension of the American opportunity tax credit. [57] Effective for dividends with respect to taxable years of regulated investment companies beginning after December 31, 2009. [58] Estimate provided by the Congressional Budget Office and is preliminary and subject to change. [59] The provision generally applies to net capital losses for taxable years beginning after the date of enactment. The provision relating to the treatment of present-law carryovers applies to taxable years beginning after the date of enactment. [60] The provision applies to taxable years with respect to which the due date (determined with regard to extensions) of the return of tax is after the date of enactment. [61] Effective for stock for which the taxpayer's holding period begins after the date of enactment. [62] Effective for months beginning (or, for certain provisions, plan years beginning or events occurring) after December 31, 2010. [63] Estimate is based on a 4.5 percentage point increase to the 2015 corporate estimated tax shift under paragraph (2) of section 561 of the "Hiring Incentives to Restore Employment Act," in effect on December 21, 2010. [64] Effective on the date the United States Tax Court adopts a personnel management system after the date of enactment. [65] Not elsewhere included. [66] For the details relating to Custom User Fees, see Part Twenty-One of the General Explanation. For the estimates relating to the Custom User Fees, see the Congressional Budget Office website, www.CBO.gov. [67] Effective as if included in the American Recovery and Reinvestment Act of 2009. [68] Generally effective as if included in the American Recovery and Reinvestment Act www.irstaxattorney.com 888-712-7690