JCT Scores Modifications to Chairman's Mark of Economic Recovery and Assistance for American Workers Act
JCX-79-01
- Institutional AuthorsJoint Committee on Taxation
- Code Sections
- Subject Area/Tax Topics
- Index Termsbudget, federalaccounting periodlegislation, taxtax reliefwork opportunity creditexempt bondsfuel, aviationACRSdepreciation, expensing electionsunset tax provisions
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-28236 (4 original pages)
- Tax Analysts Electronic Citation2001 TNT 218-7
=============== 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
[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
- Institutional AuthorsJoint Committee on Taxation
- Code Sections
- Subject Area/Tax Topics
- Index Termsbudget, federalaccounting periodlegislation, taxtax reliefwork opportunity creditexempt bondsfuel, aviationACRSdepreciation, expensing electionsunset tax provisions
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-28236 (4 original pages)
- Tax Analysts Electronic Citation2001 TNT 218-7