CRS Releases List of Temporary Tax Provisions Expiring in 2005
RS22117
- AuthorsJackson, Pamela J.
- Institutional AuthorsCongressional Research Service
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2005-8349
- Tax Analysts Electronic Citation2005 TNT 76-46
April 19, 2005
List of Temporary Tax Provisions:
"Extenders" Expiring in 2005
Pamela J. Jackson
Analyst in Public Sector Economics
Government and Finance Division
Summary
Several temporary tax provisions will expire this year. Often referred to as "extenders," these provisions were originally enacted with an expiration date that may well be extended. Several have been extended numerous times in the past, sometimes after their expiration date. The extenders provide special tax treatment for certain types of activities and investment and benefit both individuals and corporations. They occur in a variety of policy areas including wage credits to support employment of certain populations; excise taxes on fuel, tires, and other commodities; energy production incentives; deductions for charitable contributions; special depreciation allowances; and many others.
A total of 35 temporary tax provisions are expiring in 2005, of which 11 are tax credits, nine are tax deductions, seven are excise taxes, and eight are other temporary provisions. All of the provisions, unless otherwise noted, expire on December 31, 2005.
This list will be updated as warranted by legislative changes.
Table 1. Expiring Tax Credits
Internal
Revenue
Provision Code
Section
_____________________________________________________________________________
Personal tax credits allowed against regular
tax and alternative minimum taxa 26(a)(2)
Placed-in-service date for eligibility
for tax credit for electricity production
from alternative sourcesa 45(d)(1)-(7)
Work Opportunity Tax Credita 51(c)(4)
Welfare-to-Work Tax Credita 51A(f)
Credit for holders of qualified zone academy
bondsa 1397E(e)(1)
Tax credit for first-time D.C.
homebuyersa 1400C(i)
Tax credit for research and experimentationa 41(h)
Indian employment tax creditb 45A(f)
Puerto Rico economic activity tax credit 30A(h)
Puerto Rico and possessions tax credit 936(j)(3)
Election to include combat pay as earned
income for purposes of the earned
income tax credit 32 (c)(2)
FOOTNOTES TO TABLE
a An overview of this provision is provided in CRS
Report RL32367, Temporary Tax Provisions ("Extenders")
Expired in 2003.
b An overview of this provision is provided in CRS
Report RL32439, Temporary Tax Provisions ("Extenders")
Expiring in 2004.
Table 2. Expiring Tax Deductions
Internal
Revenue
Provision Code
Section
_____________________________________________________________________________
Expense deduction for elementary and
secondary school teachersa 62(a)(2)(D)
Enhanced deduction for corporate
contributions of computer equipment
for educational purposesa 170(e)(6)(G)
Expensing of "brownfields" environmental
remediation costsa 198(h)
Archer medical savings accountsa 220(i)
Suspension of income limitation on
percentage depletion for oil and
gas from marginal wellsa 613A(c)(6)(H)
Accelerated depreciation for business
property on an Indian
reservationb 168(j)(8)
Increase in section 179 expensing 179(b)(1) and (2)
Above-the-line deduction for qualified
tuition and related expenses 222(e)
Deduction for state and local general
sales taxesc 164(b)(5)
FOOTNOTES TO TABLE
a An overview of this provision is provided in CRS
Report RL32367, Temporary Tax Provisions ("Extenders")
Expired in 2003.
b An overview of this provision is provided in CRS
Report RL32439, Temporary Tax Provisions ("Extenders")
Expiring in 2004.
c This provision is discussed in CRS Report RL32781,
Federal Deductibility of State and Local Taxes, by Steven
Maguire.
Table 3. Excise Tax Provisions
(These provisions expire September 30, 2005, except where noted.)
Internal
Revenue
Provision Code
Section
_____________________________________________________________________________
Leaking underground storage tank trust fund
[This provision expired 03/31/05] 4081(d)(3)
Motorboat gasoline and special fuels
(used to fund the aquatic resources trust
fund and the land and water conservation
fund)a 4041(a)
4081(a)(1)
Highway trust fund: 4041(a)
-- Highway gasoline, diesel fuel, kerosene, 4081 (d)(1)
and special motorfuelsa
-- Tax on retail sale of heavy highway vehicles 4051(c)
-- Tax on heavy truck tires 4071(d)
-- Annual use tax on heavy highway vehicles 4481(e)
Partially exempt methanol or ethanol fuel 4041 (m)
FOOTNOTE TO TABLE
a All but 4.3 cents-per-gallon is a temporary tax rate;
4.3 cents-per-gallon is permanent.
Table 4. Other Expiring Tax Provisions
Internal
Revenue
Provision Code
Section
_____________________________________________________________________________
Tax incentives for D.C. enterprise zone 1400(f)(1)
Tax-exempt D.C. empowerment zone bonds 1400A(b)
Special capital gains rate for investment
in D.Ca 1400B(b)(2),
(3)(A), and (4)(A)(i)
Temporary increase in limit on cover over
of rum excise tax revenuesa 7652(f)
Parity in the application of certain
mental health benefitsa 9812(f)
Increased Alternative Minimum Tax
(AMT) exemption amountb 55(d)(1)
New York Liberty Zone: advance
refunding of certain tax-exempt
bondsb 1400L(e)(1)
15-year straight-line cost recovery for 168(e)(3)(E)(iv) and
qualified leasehold improvements and (v)
qualified restaurant improvements
FOOTNOTES TO TABLE
a An overview of this provision is provided in CRS
Report RL32367, Temporary Tax Provisions ("Extenders") Expired in
2003.
b An overview of this provision is provided in CRS
Report RL32439, Temporary Tax Provisions ("Extenders")
Expiring in 2004.
- AuthorsJackson, Pamela J.
- Institutional AuthorsCongressional Research Service
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2005-8349
- Tax Analysts Electronic Citation2005 TNT 76-46