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Modifications to Chairman's Mark of Economic Stimulus Bill

NOV. 8, 2001

Modifications to Chairman's Mark of Economic Stimulus Bill

DATED NOV. 8, 2001
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=============== FULL TEXT ===============

 

TAX CHANGES

1. MODIFICATION OF WOTC PROVISION FOR NEW YORK CITY. Expansion

 

of definition of qualified employees of employers within New

 

York Recovery Zone to allow for business expansion within

 

Zone. Cost: $26 million in 2002 and $47 million over 10

 

years.

 

 

2. BROADBAND TAX CREDIT (one year). 10% credit for costs of

 

deploying current generation broadband in underserved/rural

 

areas. 20% credit for deployment of next generation broadband

 

nationwide. Cost: $413 million in 2002 and $540 million over

 

10 years.

 

 

3. TAXATION OF CITRUS CANKER PAYMENTS (one year). Permits

 

inclusion of citrus canker disaster payments into income over

 

10 years; permits longer period for rollover of proceeds into

 

new groves. Cost: $10 million in 2002 and $3 million over 10

 

years.

 

 

4. ELECTRONIC 1099s. Permit filing of electronic 1099s for 2001

 

and 2002. Cost: no revenue effect.

 

 

5. AMTRAK TAX CREDIT BONDS (one year). Permit issuance of $7

 

billion in tax credit bonds for rail infrastructure plus a $2

 

billion set aside for Hudson River Tunnel. Cost: $39 million

 

in 2002 and $4.393 billion over 10 years.

 

 

6. WIRELESS DEPRECIATION (one year). Specify that wireless

 

telecommunications equipment has a class life of 5 years for

 

purposes of depreciation. Cost: $19 million in 2002 and $5

 

million over 10 years.

 

 

7. CROP DUSTERS (one year). Clarify exemption from the excise

 

tax on aviation fuel for crop dusters. Cost: $3 million in

 

2002 and $4 million over 10 years.

 

 

HEALTH CHANGES

 

 

1. MODIFICATION TO FMAP. Increase FMAP by 1.5 percent for all

 

states. Increase FMAP by additional 1.5 percent for states

 

with higher than average unemployment rate. Cost: $1.4

 

billion in 2002 and $1.6 billion over 10 years.

 

 

2. BREAST AND CERVICAL CANCER. Clarify that American Indian and

 

Alaska native women should not be excluded from receiving

 

coverage through Medicaid for breast and cervical cancer

 

treatment through the end of FY2002. Cost: $1 million in 2002

 

and over 10 years.

 

 

TRADE CHANGES

 

 

1. REDUCE ANDEAN EXTENSION TO 6 MONTHS. Cost: Raises $6 million

 

in 2002 and $12 million over 10 years.

 

 

AGRICULTURE CHANGES

 

 

1. SUGAR BEETS. Authorizes a sugar beet disaster program. Cost:

 

$25 million in 2002 and over 10 years.

 

 

2. TECHNICAL CHANGES. Clarifies the Rural Development

 

expenditures in the Mark. Expands definition of commodities

 

eligible for purchase under the commodity purchase program.

 

Cost: no revenue effect.

 

 

Total 2002 Revenue Cost of Modifications (Approximate): $5.2 billion

Total Ten Year Revenue Cost of Modifications (Approximate): $10.2 billion

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