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Senate Small-Business Bill Would Raise $21 Million, Says JCT

JAN. 17, 2007

JCX-6-07

DATED JAN. 17, 2007

DOCUMENT ATTRIBUTES

Institutional Authors
Joint Committee on Taxation
Cross-Reference
For the JCT's description (JCX-5-07) of the chairman's modification,

see Doc 2007-1263 [PDF]. For the JCT's description (JCX-3-07) of the

chairman's mark, see Doc 2007-1132 [PDF] or 2007 TNT 10-70 .

For the JCT's estimate (JCX-4-07) of the chairman's mark, see Doc

2007-1131 [PDF] or 2007 TNT 10-71 .
Code Sections
Section 179
Section 7874
Section 51
Section 1361
Section 448
Subject Area/Tax Topics
Budgets
Legislative tax issues
Jurisdictions
United States
Language
English
Tax Analysts Document Number
Doc 2007-1262
Tax Analysts Electronic Citation
2007 TNT 12-16

Citations: JCX-6-07

JOINT COMMITTEE ON TAXATION

January 17, 2007

JCX-6-07

Fiscal Years 2007 - 2016

[Millions of Dollars]

______________________________________________________________________________

Provision Effective

______________________________________________________________________________

A. Tax Relief Provisions

I. General Provisions

1. Extension of increased expensing for small business --

increase section 179 expensing from $25,000 to

$100,000 and increase the phaseout threshold amount

from $200,000 to $400,000; include software in section

179 property; and extend indexing of both the deduction

limit and the phaseout threshold (sunset 12/31/10) tyba 12/31/09

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

--- --- --- -2,964 -1,897 1,732 1,092 792 613 375 -4,861 -257

2. Extension of the 15-year straight-line cost recovery

period for qualified leasehold and restaurant

improvements (sunset 3/31/08) ppisa 12/31/07

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

--- -30 -88 -114 -112 -109 -100 -95 -100 -98 -345 -847

3. 15-year recovery period for new restaurant buildings

(sunset 3/31/08) ppisa DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

-22 -66 -94 -99 -99 -98 -97 -95 -93 -86 -379 -847

4. 15-year recovery period for retail improvements

(sunset 3/31/08) ppisa DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

-22 -76 -119 -127 -123 -114 -106 -108 -109 -108 -467 -1,012

5. Increase gross receipts threshold for cash accounting to

$10M regardless of inventories, index for inflation, and

reset testing period tyba DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

-9 -278 -151 -52 -57 -63 -69 -76 -84 -92 -547 -931

6. Extension of Work Opportunity Tax Credit with expansions

on post 9/11 disabled veterans, high-risk youth, and wpoifibwa

vocational rehabilitation referrals (sunset 12/31/12) 12/31/07

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

--- -150 -411 -569 -657 -726 -591 -302 -143 -75 -1,788 -3,624

7. Treatment of certified professional employer

organizations as employers [1]

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

--- --- -2 -3 -4 -4 -4 -5 -5 -6 -8 -32

II. Subchapter S Provisions

1. Exclude capital gains from passive investment income tyba DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

--- -15 -30 -32 -34 -35 -37 -40 -43 -46 -111 -312

2. Treatment of qualifying director shares tyba 12/31/06

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

-4 -10 -14 -18 -20 -21 -22 -23 -23 -23 -66 -178

3. Recapture of bad debt reserves tyba 12/31/06

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

11 27 -22 -40 -36 -23 -21 -22 -23 -24 -60 -173

4. Treatment of sale of interest in a qualified subchapter S

subsidiary tyba 12/31/06

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

-1 -3 -3 -4 -4 -4 -5 -5 -5 -6 -15 -40

5. Elimination of all earnings and profits attributable to

pre-1983 years tyba DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

-3 -2 -2 -2 -2 -2 -2 -2 -2 -2 -11 -21

6. Expansion of qualifying beneficiaries of an electing small

business trust DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

--- -1 -2 -3 -4 -4 -4 -5 -5 -5 -10 -33

Total of Tax Relief Provisions

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

-50 -604 -938 -4,027 -3,049 529 34 14 -22 -196 -8,668 -8,307

B. Revenue Provisions

1. Modify the effective date for the application of the AJCA

2004 leasing (SILO) provision -- apply loss limitation to

leases with foreign entities regardless of when the lease

was entered into tyba 12/31/06

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

1,018 1,662 896 407 290 288 260 135 -239 -629 4,273 4,088

2. Tax treatment of inversion transactions tyba 2006

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

42 86 99 107 115 123 123 143 153 162 449 1,153

3. Deny deduction for punitive damages dpoio/a DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

3 37 29 30 31 32 33 34 35 36 130 299

4. Denial of deduction for certain fines, penalties, and other generally

amounts apoio/a DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

25 87 31 15 15 15 15 15 15 15 172 244

5. Impose mark-to-market on individuals who expatriate [2]

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

13 57 54 50 46 43 41 39 38 36 220 417

6. Limitation on annual amounts which may be deferred

under nonqualified deferred compensation

arrangements [3] tyba 12/31/06

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

43 59 60 63 83 94 97 100 103 106 307 806

7. Increase in certain criminal penalties aaftaoa DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

[4] [4] [4] [4] [4] [4] [4] [4] [4] [4] 1 5

8. Double certain penalties, fines, and interest on

underpayments related to certain offshore financial

arrangements oyo/a DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

1 1 1 1 1 1 1 1 1 1 5 10

9. Increase in penalty for bad checks and money orders comora DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

2 2 2 2 2 2 2 2 2 2 10 20

10. Change the tax treatment of contingent convertible

debt instruments diio/a DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

8 37 52 62 63 58 49 45 39 35 222 448

11. Extension of IRS user fees (sunset 9/30/16) [5] ra 9/30/14

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

--- --- --- --- --- --- --- --- 30 30 --- 60

12. Modification of collection due process procedures for

employment tax liabilities lio/a 120da DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

--- 58 50 28 20 17 20 23 26 29 156 271

13. Modifications to Whistleblower reforms [6] ipo/a DOE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

1 6 15 23 32 42 51 63 79 90 77 402

14. Modify definition of covered employee for denial of

deduction for excessive employee remuneration tyba 12/31/06

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

1 3 4 5 7 10 14 18 20 23 20 105

Total of Revenue Provisions

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

1,157 2,095 1,293 793 705 725 706 618 302 -64 6,042 8,328

______________________________________________________________________________

NET TOTAL

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-11 2007-16

____ ____ ____ ____ ____ ____ ____ ____ ____ ____ _______ _______

1,107 1,491 355 -3,234 -2,344 1,254 740 632 280 -260 -2,626 21

______________________________________________________________________________

Joint Committee on Taxation

NOTE: Details may not add to totals due to rounding. Date of enactment is

assumed to be April 1, 2007.

Legend for "Effective" column:

aaftaoa = actions and failures to act occurring after

apoio/a = amounts paid or incurred on or after

comora = checks or money orders received after

diio/a = debt instrument issued on or after

DOE = date of enactment

dpoio/a = damages paid or incurred on or after

oyo/a = open years on or after

ppisa = property placed in service after

ipo/a = information provided on or after

lio/a = levies issued on or after

tyba = taxable years beginning after

ra = requests after

wpoifibwa = wages paid or incurred for individuals

beginning work after

120da = 120 days after

[1] Effective with respect to wages paid for services performed on or after

January 1 of the first calendar year beginning more than 12 months after the

date of enactment.

[2] Generally effective for U.S. citizens who expatriate or long-term

residents who terminate their residency on or after the date of enactment.

[3] Estimate assumes that changes to outstanding elections to reduce

amounts deferred would be permissible.

[4] Gain of less than $500,000.

[5] Estimate provided by the Congressional Budget Office.

[6] Net of outlays.

DOCUMENT ATTRIBUTES

Institutional Authors
Joint Committee on Taxation
Cross-Reference
For the JCT's description (JCX-5-07) of the chairman's modification,

see Doc 2007-1263 [PDF]. For the JCT's description (JCX-3-07) of the

chairman's mark, see Doc 2007-1132 [PDF] or 2007 TNT 10-70 .

For the JCT's estimate (JCX-4-07) of the chairman's mark, see Doc

2007-1131 [PDF] or 2007 TNT 10-71 .
Code Sections
Section 179
Section 7874
Section 51
Section 1361
Section 448
Subject Area/Tax Topics
Budgets
Legislative tax issues
Jurisdictions
United States
Language
English
Tax Analysts Document Number
Doc 2007-1262
Tax Analysts Electronic Citation
2007 TNT 12-16

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