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JCT List of Expired or Expiring Provisions

JAN. 20, 1999

JCX-1-99

DATED JAN. 20, 1999
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Joint Committee on Taxation
  • Subject Area/Tax Topics
  • Index Terms
    legislation, tax
    sunset tax provisions
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 1999-3274 (13 original pages)
  • Tax Analysts Electronic Citation
    1999 TNT 14-13
Citations: JCX-1-99

 

=============== SUMMARY ===============

 

The Joint Committee on Taxation has released JCX-1-99, a list of tax provisions that have expired or will expire in the years 1998 through 2008.

Provisions allowed to sunset in 1998 included nonconventional fuel credits and allowance of personal credits without regard to the alternative minimum tax.

The R&E tax credit is set to expire in 1999, as are the work opportunity and welfare-to-work tax credits.

 

=============== FULL TEXT ===============

 

Prepared by the Staff

 

 

of the

 

 

JOINT COMMITTEE ON TAXATION

 

 

* * * * *

 

 

CONTENTS

 

 

INTRODUCTION

 

 

EXPIRED AND EXPIRING FEDERAL TAX PROVISIONS, 1998-2008

 

 

A. Provisions That Expired in 1998

 

B. Provisions Expiring in 1999

 

C. Provisions Expiring in 2000

 

D. Provisions Expiring in 2001

 

E. Provisions Expiring in 2002

 

F. Provisions Expiring in 2003

 

G. Provisions Expiring in 2004

 

H. Provisions Expiring in 2005

 

I. Provisions Expiring in 2007

 

J. Provisions Expiring in 2008

 

 

INTRODUCTION

This document, 1 prepared by the staff of the Joint Committee on Taxation, provides a listing of tax provisions (with Code sections) that expired in 1998 and that are currently scheduled to expire in 1999-2008.

       EXPIRED AND EXPIRING FEDERAL TAX PROVISIONS, 1998-2008

 

 

                 A. PROVISIONS THAT EXPIRED IN 1998

 

_____________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

_____________________________________________________________________

 

 

1. Nonconventional fuels tax credit for fuel

 

   from biomass and coal -- facilities placed

 

   in service pursuant to binding contracts

 

   before January 1, 1997 (sec. 29)                   6/30/98

 

 

2. Moratorium on regulations regarding

 

   employment taxes of limited partners

 

   (sec. 1402(a)(13) and sec. 935 of the

 

   Taxpayer Relief Act of 1997 (the "1997

 

   Act"))                                             6/30/98

 

 

3. Temporary increase in limit on cover

 

   over of rum excise tax revenues (from

 

   $10.50 to $11.30 per proof gallon) to

 

   Puerto Rico and the Virgin Islands (sec.

 

   7652(f))                                           9/30/98

 

 

4. Personal tax credits fully allowed against

 

   regular tax liability without regard to the

 

   alternative minimum tax (sec. 26)                 12/31/98

 

 

                   B. PROVISIONS EXPIRING IN 1999

 

______________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

______________________________________________________________________

 

 

1. Tax credit for research and

 

   experimentation expenses (sec. 41)                 6/30/99

 

 

2. Work opportunity tax credit (sec. 51)              6/30/99

 

 

3. Welfare-to-work tax credit (sec. 51A)              6/30/99

 

 

4. Tax credit for electricity production from

 

   wind and closed-loop biomass -- facilities

 

   placed in service date (sec. 45(c))                6/30/99

 

 

5. Waiver of penalty for failure of small

 

   business to use Electronic Funds Transfer

 

   Payment System ("EFTPS")                           6/30/99 2

 

 

6. Suspension of 100 percent-of-net-income

 

   limitation on percentage depletion for oil

 

   and gas from marginal wells (sec. 613A)           12/31/99

 

 

7. Qualified zone academy bonds (sec.

 

   1397E)                                            12/31/99

 

 

8. Exceptions under subpart F for active

 

   financing income (secs. 953 and 954)             12/31/99

 

 

                   C. PROVISIONS EXPIRING IN 2000

 

______________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

______________________________________________________________________

 

 

1. Exclusion for employer-provided

 

   educational assistance (sec. 127)                  5/31/00

 

 

2. Enhanced deduction for corporate

 

   contributions of computer equipment to

 

   elementary and secondary schools (sec.

 

   170(e)(6))                                        12/31/00

 

 

3. Expensing of "Brownfields"

 

   environmental remediation costs (sec.

 

   198)                                              12/31/00

 

 

4. Establishment of Medical Savings

 

   Accounts ("MSAs") (sec. 220)                      12/31/00 3

 

 

5. Tax credit for first-time D.C. homebuyers

 

   (sec. 1400C)                                      12/31/00

 

 

                   D. PROVISIONS EXPIRING IN 2001

 

______________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

______________________________________________________________________

 

 

1. Tax on failure to comply with mental

 

   health parity requirements applicable to

 

   group health plans (sec. 9812)                     9/29/01

 

 

2. Tax credit for non-special needs adoption

 

   (sec. 23(d)(2)(B))                                12/31/01

 

 

3. Exclusion for employer-provided

 

   adoption assistance (sec. 137(f))                 12/31/01

 

 

                   E. PROVISIONS EXPIRING IN 2002

 

_____________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

_____________________________________________________________________

 

 

1. Combined employment tax reporting

 

   demonstration project (sec. 976 of the

 

   1997 Act)                                          8/5/02

 

 

2. Tax incentives for investment in the

 

   District of Columbia:

 

 

   a. Designation of D.C. Enterprise Zone;

 

   employment tax credit; additional

 

   expensing (sec. 1400)                            12/31/02

 

 

   b. Tax-exempt D.C. economic

 

   development bonds (sec. 1400A)                   12/31/02

 

 

   c. Zero percent capital gains rate for

 

   investment in D.C. for property acquired

 

   by 12/31/02; for gains through 12/31/07

 

   (sec. 1400B)                                     12/31/02

 

 

3. Luxury excise tax on passenger highway

 

   automobiles (sec. 4001)                          12/31/02 4

 

 

                   F. PROVISIONS EXPIRING IN 2003

 

______________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

______________________________________________________________________

 

 

1. Disclosure of tax return information for

 

   administration of certain veterans

 

   programs (sec. 6103(l)(7)(D)(viii))                9/30/03

 

 

2. Disclosure of tax return information to

 

   carry out administration of income

 

   contingent repayment of student loans

 

   (sec. 6103(l)(13))                                 9/30/03

 

 

3. IRS user fees for letter rulings,

 

   determination letters, advance pricing

 

   agreements, and similar requests (sec.

 

   10511 of the Revenue Act of 1987, as

 

   last amended by sec. 2 of P.L. 104-117)            9/30/03

 

 

4. Indian employment tax credit (sec. 45A)           12/31/03

 

 

5. Accelerated depreciation for business

 

   property on an Indian reservation (sec.

 

   168(j))                                           12/31/03

 

 

6. Joint Committee on Taxation annual

 

   report and annual joint hearings on IRS

 

   strategic plans (secs. 4001 and 4002 of

 

   the Internal Revenue Service

 

   Restructuring and Reform Act of 1998)             12/31/03

 

 

                   G. PROVISIONS EXPIRING IN 2004

 

_____________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

______________________________________________________________________

 

 

1. Empowerment zone tax incentives

 

   (employment tax credit, additional

 

   expensing, tax-exempt bonds) generally

 

   (secs. 1391, 1394, and 1396)                      12/31/04 5

 

 

2. Tax credit for qualified electric vehicles

 

   (sec. 30)                                         12/31/04 6

 

 

3. Deduction for clean-fuel vehicles and

 

   refueling property (sec. 179A)                    12/31/04 7

 

 

                   H. PROVISIONS EXPIRING IN 2005

 

_____________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

_____________________________________________________________________

 

 

1. Leaking Underground Storage Tank

 

   Trust Fund excise tax (sec. 4081(d)(3))            3/31/05

 

 

2. Highway Trust Fund excise tax rates:

 

 

   a. All but 4.3 cents per gallon of the

 

   taxes on highway gasoline, diesel fuel,

 

   kerosene, and special motor fuels (secs.

 

   4041(a) and 4081(d)(1)) 8                        9/30/05

 

 

   b. Tax on retail sale of heavy highway

 

   vehicles (sec. 4051(c))                            9/30/05

 

 

   c. Tax on heavy truck tires (sec. 4071(d))         9/30/05

 

 

   d. Annual use tax on heavy highway

 

   vehicles (sec. 4481)                               9/30/05

 

 

3. Aquatic Resources Trust Fund and Land

 

   and Water Conservation Fund excise tax

 

   on motorboat gasoline and special fuels

 

   (secs. 4041(a) and 4081(a)(1)) -- all but

 

   4.3 cents per gallon 9                           9/30/05

 

 

4. Puerto Rico economic activity tax credit

 

   (sec. 30A)                                        12/31/05

 

 

5. Puerto Rico and possessions tax credit

 

   (sec. 936)                                        12/31/05

 

 

                  I. PROVISIONS EXPIRING IN 2007 10

 

______________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

______________________________________________________________________

 

 

1. Airport and Airway Trust Fund excise

 

   taxes:

 

 

   a. All but 4.3 cents per gallon of taxes on

 

   noncommercial aviation jet fuel and

 

   noncommercial aviation gasoline (secs.

 

   4041(c), 4081(d), and 4091) 11                   9/30/07

 

 

   b. Domestic and international air

 

   passenger ticket taxes (sec. 4261)                 9/30/07

 

 

   c. Air cargo tax (sec. 4271)                       9/30/07

 

 

2. Reduced excise tax rates for alcohol fuels

 

   and alcohol fuels mixtures (secs.

 

   4041(b)(2) and (k), 4081(c), and 4091(c))          9/30/07 12

 

 

3. Alcohol fuels income tax credits (sec. 40)        12/31/07 13

 

 

4. FUTA surtax of 0.2 percent (sec. 1301)            12/31/07

 

 

5. Empowerment zone tax incentives, for

 

   zones added by the 1997 Act:

 

 

   a. Empowerment zone employment tax

 

   credit (sec. 1396)                                12/31/07 14

 

 

                   J. PROVISIONS EXPIRING IN 2008

 

______________________________________________________________________

 

 

     Provision (Code section)                      Expiration Date

 

______________________________________________________________________

 

 

1. Empowerment zone tax incentives, for

 

   zones added by the 1997 Act:

 

 

   a. Empowerment zone expensing; tax-

 

   exempt bonds (secs. 1391 and 1394)           December 31, 2008 15

 

FOOTNOTES

 

 

1 This document maybe cited as follows: Joint Committee on Taxation, List of Expired and Expiring Federal Tax Provisions, 1998- 2008 (JCX-1-99), January 20, 1999.

2 The Internal Revenue Service has administratively extended the waiver through June 30, 1999. IRS Notice 98-68, November 18, 1998. The previous statutory waiver expired June 30, 1998; see section 931 of the 1997 Act.

3 The ability of individuals to establish MSAs may expire earlier than December 31, 2000, if certain numerical limits on the number of MSAs established are exceeded.

4 The luxury excise tax on automobiles phases down as follows: 6 percent in 1999, 5 percent in 2000, 4 percent in 2001, and 3 percent in 2002.

5 This expiration date does not apply to new empowerment zones added by the 1997 Act, which expire later. See, I. Provisions Expiring in 2007 and J. Provisions Expiring in 2008, below.

6 The credit phases down for vehicles placed in service after 12/31/01. The credit is reduced by 25 percent in 2002, 50 percent in 2003, and 75 percent in 2004. No credit is available after 2004.

7 The deduction phases down for vehicles placed in service after 12/31/01. The deduction is reduced by 25 percent in 2002, 50 percent in 2003, and 75 percent in 2004. No deduction is allowed after 2004.

8 The 4.3-cents-per-gallon rate is permanent.

9 The 4.3-cents-per-gallon rate is permanent.

10 There are no Federal tax provisions expiring in calendar years 2006.

11 The 4.3-cents-per-gallon rate is permanent.

12 The reduced rates expire earlier if the tax rate on gasoline and other motor fuels drops to 4.3 cents per gallon, which is currently scheduled to occur after September 30, 2005, unless the Highway Trust Fund tax rates are extended beyond that date.

13 The income tax credits expire earlier if the tax rate on gasoline and other motor fuels drops to 4.3 cents per gallon, which is currently scheduled to occur after September 30, 2005, unless the Highway Trust Fund tax rates are extended beyond that date.

14 The empowerment zone employment tax credit is only available to the two additional urban empowerment zones that were designated by February 1, 1998.

15 Empowerment zone tax incentives generally expire 10 years after zone designation; thus, the empowerment zones whose designations take effect in 1998 expire December 31, 2008.

 

END OF FOOTNOTES
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Joint Committee on Taxation
  • Subject Area/Tax Topics
  • Index Terms
    legislation, tax
    sunset tax provisions
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 1999-3274 (13 original pages)
  • Tax Analysts Electronic Citation
    1999 TNT 14-13
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