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JCT Scores Modifications to Chairman's Mark of Economic Recovery and Assistance for American Workers Act

NOV. 8, 2001

JCX-79-01

DATED NOV. 8, 2001
DOCUMENT ATTRIBUTES
Citations: JCX-79-01

 

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

 

The Joint Committee on Taxation has estimated (JCX-79-01) the revenue effects of the modified Chairman's mark of the Economic Recovery and Assistance for American Workers Act of 2001, which was marked up by the Senate Finance Committee on November 8.

According to the JCT, the modified mark would cost $52.2 billion over 10 years. Tax incentives for New York City and distressed areas would cost $5.3 billion over 10 years, and tax provisions added to the mark would total $4.9 billion over 10 years.

 

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

 

                     JOINT COMMITTEE ON TAXATION

 

                          November 8, 2001

 

                              JCX-79-01

 

 

     ESTIMATED REVENUE EFFECTS OF A MODIFIED CHAIRMAN'S MARK OF

 

         THE "ECONOMIC RECOVERY AND ASSISTANCE FOR AMERICAN

 

                        WORKERS ACT OF 2001,"

 

 

SCHEDULED FOR MARKUP BY THE COMMITTEE ON FINANCE ON NOVEMBER 8, 2001

 

 

                      Fiscal Years 2002 - 2011

 

 

                        [Millions of Dollars]

 

 

PROVISION                                              EFFECTIVE

 

______________________________________________________________________

 

Supplemental Rebate for Individual Taxpayers -

 

provide a rebate ($300 individual, $600 married

 

filing jointly, and $500 head-of-household) for

 

individuals who filed a tax return in 2000 (including

 

insular areas) other than dependents and

 

nonresident aliens; rebate amount reduced by

 

amount of rebate individual received under H.R.

 

1836 [1]                                               DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

-14,173  ---  ---  ---  ---  ---  ---  ---  ---  --- -14,173 -14,173

 

______________________________________________________________________

 

TEMPORARY BUSINESS RELIEF PROVISIONS

 

______________________________________________________________________

 

1. Special depreciation allowance for certain property -

 

   10% expensing of the value of capital assets with

 

   MACRS lives of 20 years or less, software,

 

   leasehold improvements, and property eligible for

 

   the income forecast method (sunset after 12

 

   months) [2]                                         ppisa 9/10/01

 

 

   2002   2003  2004  2005  2006  2007  2008 2009 2010 2011 2002-06

 

 

-14,010 -1,596 3,507 2,585 2,241 1,828 1,349  956  583  381  -7,274

 

 

                                                            2002-11

 

 

                                                             -2,177

 

______________________________________________________________________

 

2. Increase in section 179 expensing to $35,000, and

 

   increase beginning point for phaseout to $325,000

 

   for 12 months                                       tyba 12/31/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

   -852 -592  424  277  202  158  116   77   42   25    -541    -123

 

______________________________________________________________________

 

3. 5-year carryback of net operating losses and waive

 

   the AMT 90% limitation on the allowance of losses

 

   (sunset after 12 months)                          NOLs gi tyei 2001

 

 

  2002  2003  2004  2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

-4,587 1,147 1,147 1,147  764  115   38   38   38   38    -382    -115

 

______________________________________________________________________

 

TOTAL OF TEMPORARY BUSINESS RELIEF PROVISIONS

 

 

   2002   2003  2004  2005  2006   2007  2008  2009 2010 2011 2002-06

 

 

-19,449 -1,041 5,078 4,009 3,207  2,101 1,503 1,071  663  444  -8,197

 

 

                                                              2002-11

 

 

                                                              -2,415

 

______________________________________________________________________

 

TAX INCENTIVES FOR NEW YORK CITY AND DISTRESSED AREAS [3]:

 

______________________________________________________________________

 

1. Expansion of Work Opportunity Tax Credit targeted

 

   categories to include certain employees in New

 

   York City - add individuals working in or relocated

 

   from the Recovery Zone as a targeted group eligible

 

   for a modified WOTC (40% on first $12,000; allow

 

   against the AMT) (sunset 12/31/02)                 wpoifwpa 9/10/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

 -1,199 -558 -165  -61  -18  ---  ---  ---  ---  ---  -2,000  -2,000

 

______________________________________________________________________

 

2. Authorize issuance of tax-exempt private activity

 

   bonds for rebuilding the portion of New York City

 

   damaged in the September 11, 2001, terrorist attack -

 

   tax-exempt reconstruction bonds capped at $15

 

   billion for calendar year 2002 with 3-year

 

   carryforward of unused amount; exempt from AMT      bia DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -21  -82 -145 -199 -245 -259 -259 -259 -259 -259     -693 -1,986

 

______________________________________________________________________

 

3. Bank carrying cost exception for tax-exempt

 

   reconstruction bonds                                bia DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -17  -51  -58  -80  -82  -82  -82  -82  -82  -82    -288    -698

 

______________________________________________________________________

 

4. Incentive for reinvestment of insurance proceeds

 

   received for property damaged in New York City in

 

   the September 11, 2001, terrorist attack to the

 

   extent reinvested in eligible property in New York

 

   City before January 1, 2007                         [4]

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

   -584 -358 -122   -8   98  118  110  104  104  104    -973    -432

 

______________________________________________________________________

 

5. Re-enact exceptions for qualified mortgage bond

 

   financed loans to victims of Presidentially-declared

 

   disasters for calendar year 2002                    [5]

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

     -3   -7   -8   -8   -8   -8   -8   -8   -8   -8     -33     -73

 

______________________________________________________________________

 

6. One-year expansion of authority for Indian tribes to

 

   issue tax-exempt private activity bonds - authorize

 

   issuance of up to $10 million tax-exempt private

 

   activity bonds for qualified Indian tribal governments

 

   for calendar year 2002 with 3-year carryforward;

 

   exempt from AMT                                     DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

     -1   -4   -8  -13  -16  -16  -16  -16  -16  -16     -41    -121

 

______________________________________________________________________

 

TOTAL OF TAX INCENTIVES FOR NEW YORK CITY AND DISTRESSED AREAS

 

______________________________________________________________________

 

 

   2002   2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

 -1,825 -1,060 -506 -369 -271 -247 -255 -261 -261 -261  -4,028  -5,310

 

______________________________________________________________________

 

EXTENSION OF CERTAIN EXPIRING PROVISIONS

 

______________________________________________________________________

 

1. Treatment of nonrefundable personal credits under the

 

   individual alternative minimum tax (sunset 12/31/02)

 

   [6]                                                 tyba 12/31/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

   -123 -490  ---  ---  ---  ---  ---  ---  ---  ---    -613     -613

 

______________________________________________________________________

 

2. Work opportunity tax credit (sunset 12/31/02)    wpoifibwa 12/31/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -92 -153  -92  -36  -14   -3  ---  ---  ---  ---    -387    -390

 

______________________________________________________________________

 

3. Welfare-to-work tax credit (sunset 12/31/02)     wpoifibwa 12/31/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -27  -52  -38  -16   -7   -2  [7]  ---  ---  ---    -140    -141

 

______________________________________________________________________

 

4. Tax credit for electricity production from wind,

 

   closed-loop biomass, and poultry litter -- facilities

 

   placed in service date (sunset 12/31/02)            ppisa 12/31/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

     -9  -17  -19  -20  -20  -21  -21  -22  -22  -23     -85    -193

 

______________________________________________________________________

 

5. Suspension of 100 percent-of-net-income limitation

 

   on percentage depletion for oil and gas from

 

   marginal wells (sunset 12/31/02)                    tyba 12/31/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -27  -14  ---  ---  ---  ---  ---  ---  ---  ---     -41     -41

 

______________________________________________________________________

 

6. Qualified zone academy bonds (sunset 12/31/02)      DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    [7]   -2   -5   -9  -11  -11  -11  -11  -11  -11     -27     -79

 

______________________________________________________________________

 

7. Exceptions under subpart F for active financing

 

   income (sunset 12/31/02)                            tyba 12/31/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

   -260 -781  ---  ---  ---  ---  ---  ---  ---  ---  -1,041  -1,041

 

______________________________________________________________________

 

8. 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 12/31/02) [8]                       DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -56  -14  ---  ---  ---  ---  ---  ---  ---  ---     -70     -70

 

______________________________________________________________________

 

9. Suspension of requirement that terminals selling

 

   diesel fuel and kerosene must sell both dyed and

 

   undyed fuel (sunset 12/31/02)                       DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

- - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - -

 

______________________________________________________________________

 

10. Deductions for clean-fuel vehicles and refueling

 

   property (sunset after 12 months)                ppisa 12/31/01 [9]

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

     -9  -10   -7   -5    7   11    7    4    2 [10]     -24     ---

 

______________________________________________________________________

 

11. Tax credit for electric vehicles (sunset after

 

   12 months)                                        isa 12/31/01 [11]

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -25  -33  -25  -17   -1    5    3    2    1 [10]    -102     -92

 

______________________________________________________________________

 

12. Tax on failure to comply with mental health parity

 

   requirements applicable to group health plans

 

   (sunset 12/31/02)                                   pybo/a 1/1/02

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

- - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - -

 

______________________________________________________________________

 

13. Combined employment tax reporting demonstration

 

   project (sunset 12/31/02)                           8/6/02

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

- - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - -

 

______________________________________________________________________

 

TOTAL OF EXTENSION OF CERTAIN EXPIRING PROVISIONS

 

 

   2002   2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

   -628 -1,566 -186 -103  -46  -21  -22  -27  -30  -34  -2,530  -2,660

 

______________________________________________________________________

 

EXTENSION OF ADDITIONAL PROVISIONS EXPIRING IN 2001

 

______________________________________________________________________

 

1. Generalized System of Preferences (sunset

 

   12/31/02) [8]                                       10/1/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

   -332  -87  ---  ---  ---  ---  ---  ---  ---  ---    -419    -419

 

______________________________________________________________________

 

2. Andean Trade Preference Initiative (sunset

 

   6/30/02) [8]                                        12/5/01

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -12  ---  ---  ---  ---  ---  ---  ---  ---  ---     -12     -12

 

______________________________________________________________________

 

3. Trade Adjustment Assistance Program (sunset

 

   12/31/02) [8]                                       DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

- - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - -

 

______________________________________________________________________

 

TOTAL OF EXTENSION OF ADDITIONAL PROVISIONS EXPIRING IN 2001

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

   -344  -87  ---  ---  ---  ---  ---  ---  ---  ---    -431    -431

 

______________________________________________________________________

 

HEALTH INSURANCE COVERAGE FOR DISPLACED WORKERS

 

AND INCREASE THE MEDICAID FEDERAL MATCH [8]            ---

 

 

   2002   2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

-12,300 -3,800  ---  ---  ---  ---  ---  ---  ---  --- -16,100 -16,100

 

______________________________________________________________________

 

UNEMPLOYMENT INSURANCE PROVISIONS [8]                  ---

 

 

   2002   2003  2004  2005  2006  2007  2008  2009  2010  2011 2002-06

 

 

-14,300 -4,500 1,200 1,900 2,600 2,600 3,300 3,000 2,200 1,500 -13,100

 

 

                                                               2002-11

 

 

                                                                  -600

 

______________________________________________________________________

 

EMERGENCY AGRICULTURE ASSISTANCE PROVISIONS [8] [12]   ---

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

 -2,849 -751 -727 -443 -307 -258  -71  -45  -59   -8  -5,077  -5,518

 

______________________________________________________________________

 

ADDITIONAL PROVISIONS

 

______________________________________________________________________

 

1. Tax credit bonds for the National Railroad

 

   Passenger Corporation ("Amtrak") - allow $9 billion

 

   of Amtrak tax credit bonds for one year             bia DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -39 -136 -329 -516 -569 -563 -560 -560 -560 -560 - 1,589  -4,393

 

______________________________________________________________________

 

2. Provide a broadband internet access tax credit

 

   (sunset 12/31/02)                                   [13]

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

   -413 -211   15   13   11   10   10    9    8    8    -585    -540

 

______________________________________________________________________

 

3. Expansion of period for reinvestment of converted

 

   citrus tree property and ratable income inclusion for

 

   citrus canker tree payments                         tybbo/a DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -10    1    1    1    1    1    1    1    1 [10]      -7      -3

 

______________________________________________________________________

 

4. Allow Form 1099 to be filed electronically with

 

   respect to taxable years 2001 and 2002              DOE

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

- - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - -

 

______________________________________________________________________

 

5. Expand exemption from aviation fuels excise taxes

 

   for aerial applicators (one year only)              1/1/02

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

     -4   -1  ---  ---  ---  ---  ---  ---  ---  ---      -5      -5

 

______________________________________________________________________

 

6. Recovery period for certain wireless

 

   telecommunications equipment (sunset after 12

 

   months)                                             [14]

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

    -19  -22  -11   -2   -3    5   15   14   10    8     -57      -5

 

______________________________________________________________________

 

TOTAL OF ADDITIONAL PROVISIONS

 

 

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-06 2002-11

 

 

   -485 -369 -324 -504 -560 -547 -534 -536 -541 -544  -2,243  -4,946

 

______________________________________________________________________

 

NET TOTAL

 

 

   2002    2003  2004  2005  2006   2007  2008  2009  2010  2011

 

 

-66,353 -13,174 4,535 4,490 4,623  3,628 3,921 3,202 1,972 1,097

 

 

                                                  2002-06 2002-11

 

 

                                                  -65,879 -52,153

 

______________________________________________________________________

 

Joint Committee on Taxation

 

--------------------------------------

 

NOTE: Details may not add to totals due to rounding.

 

 

LEGEND FOR "EFFECTIVE" COLUMN:

 

 

bia = bonds issued after        tyba = taxable years beginning after

 

 

DOE = date of enactment         tybbo/a = taxable years beginning

 

                                          before on or after

 

 

gi = generated in               tyei = taxable years ending in

 

 

NOLs = net operating losses     wpoifibwa = wages paid or incurred for

 

                                            individuals beginning work

 

                                            after

 

 

ppisa = property placed in      wpoifwpa = wages paid or incurred for

 

        service after                      work performed after

 

 

pybo/a = plan years beginning on or after

 

FOOTNOTES

 

 

[1] Includes outlay effect of $14,173 million in fiscal year 2002.

[2] A binding contract placed-in-service extension would apply in certain cases.

[3] The New York City Recovery Zone is defined as all business addresses located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan, New York, NY.

[4] Effective with respect to involuntary conversions in the New York City Recovery Zone on or after September 11, 2001, as a consequence of the terrorists acts, in the taxable year that includes such date.

[5] Effective for bonds issued during calendar year 2002 and for qualified mortgage bonds issued during calendar year 2002.

[6] The "Economic Growth and Tax Relief Reconciliation Act of 2001" provides that the child tax credit and adoption tax credit are allowed for purposes of the alternative minimum tax for 2002 through 2010.

[7] Loss of less than $500,000.

[8] Estimate provided by the Congressional Budget Office.

[9] The deduction phases down for vehicles placed in service after 12/31/02. The credit is reduced by 25 percent in 2003, 50 percent in 2004, and 75 percent in 2005. No expensing is available after 2005.

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

[11] The credit phases down for vehicles placed in service after 12/31/02. The credit is reduced by 25 percent in 2003, 50 percent in 2004, and 75 percent in 2005. No credit is available after 2005.

[12] The money allocated for the emergency agriculture section includes $50 million to offset additional USDA Farm Service Agency expenses for administering the programs.

[13] Effective for qualified expenditures made after December 31, 2001, and before January 1, 2003.

[14] Effective for wireless telecommunications equipment placed in service after September 10, 2001, and before September 11, 2002.

 

END OF FOOTNOTES
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