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Key differences in Senate, House versions of stimulus package by the Committee on Ways and Means Republicans

Key differences in Senate, House versions of stimulus package by the Committee on Ways and Means Republicans

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Published by tndotcom
Key differences in Senate, House versions of President Obama's stimulus package by the Committee on Ways and Means Republicans
Key differences in Senate, House versions of President Obama's stimulus package by the Committee on Ways and Means Republicans

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Published by: tndotcom on Feb 11, 2009
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06/14/2009

 
 
Key Differences Between House & SenateStimulus Bills
The following are key differences, within our jurisdiction, between the stimulus bill passed by the Houseand the Nelson-Collinssubstitute to the stimulus bill expected to be passed by the Senate today. Please feel free to call us withany questions.
 
Major provisions in the Senate bill but not the House bill:
 
Individual Taxation
 
 
AMT patch for 2009.
(Costs $69.8b / 11)
 
 
Allow computer technology and equipment as qualified higher education expense for 2009and 2010.
(Costs $6m /11)
 
 
Temporary above the line deduction for interest expenses and state taxes on purchasingnew automobiles.
(Costs
 
$10.5b / 1 1 )
 
Business Taxation
 
 
Cancellation of indebtedness income spread over the eight years following year of cancellation, instead of immediate recognition.
(Costs $26.2b / 3, $813m / 11)
 
 
Note that a provision in the Senate Finance Committee-reported
 
bill providing a five-yearcarryback (instead of one) for general business credits for 2008 and 2009 and allowingsuch credits to fully offset federal tax liability will be deleted by Collins-Snow (the Househad no such provision, either).
 
 
Extends and modifies new markets tax credit.
(Costs $1b / 11)
 
 
Election to accelerate AMT and research credits in lieu of bonus depreciation.
(Costs$805m / 11)
 
Temporarily increases section 1202 small business capital gains exclusion to 75%.
(Costs$829m / 11)
 
 
Temporary cut in the built-in gains holding period for S corporations to seven years from10 years.
(Costs $415m / 11)
 
 
Broadband Internet access tax credit.
(Costs $110m / 11)
 
 
Require TARP recipients paying certain bonuses to return TARP funds or pay excise tax.
(Costs $3.2b / 10)
 
 
Acceleration of low-income housing credits and eliminating reduction in basis for receiptof certain federal grants for determining credit.
(Costs $1.7b / 11)
 Energy
 
 
Credit for investment in advanced energy property.
(Costs $1.4b / 11)
 
 
Election to expense manufacturing facilities for plug-in vehicles.
(Costs $1.8b / 11)
 
 
Modification of credits for alternative motor vehicles and qualified plug-in electric drivevehicles.
(Costs $94m / 11)
 
 
Five year depreciation for smart meters purchased before 2011.
(Costs $22m / 11)
 
Bonds
 
 
Modifies speed requirement for high-speed rail bonds.
(Costs $288m / 11)
 
 
Expands Industrial Development Bonds.
(Costs $203m / 11)
 
Health
 
 
Provides a one-year extension through 2010 of the Qualified Individual (QI) program,which helps low-income Medicare beneficiaries with their Part B premiums.
(Costs$562m)
 
 
 Temporary Assistance for Needy Families (TANF) and Unemployment
 
 
Waives interest on Federal loans to state unemployment benefit programs through CY2010.
(Costs $1.1b / 11)
 
 
Extends TANF supplemental grants through FY 2010.
(Costs $319m / 11)
 
 
Allows States to spend TANF carryover funds on noncash benefits.
(No long-run cost)
 
 
Appropriates additional $400 million for Social Services Block Grant funding.
(Costs$400m / 11)
 
 
Excludes up to $2,400 of unemployment insurance benefits from 2009 gross income.
(Costs $4.7b / 11)
 
Trade
 
 
Extends current trade adjustment assistance program (placeholder for expansion).
(Costs$108m / 11)
 
 
Prohibits collection of certain payments made under Continued Dumping and SubsidyOffset Act (Byrd Amendment
)
disbursements on imports from Canada and Mexico.
(Costs$90m / 11)
 
Major provisions in the House bill but not the Senate bill:
 
 
Grants to States for low-income housing in lieu of low-income housing credit 2009allocations.
(2009 outlay of $3b, largely offset over 11 years by revenue increase of $2.9b)
 
 
Grants for specified energy property in lieu of tax credits
(2009 – 2011 outlay of $158m; largely offset by increased 2009-2016
 
revenue of $153m)
 
 
Medicare Provisions: Long-Term Care Hospital earmarks and the delay of hospice andIndirect Medical Education regulations.
 
 
GAO study of economic and employment effects of bill.
 
Similar provisions with important differences:
 
Individual Taxation
 
 
Making Work Pay Credit: House
costs $145.3b / 11
. Senate reduces the credit by amountspaid by SSA, Railroad Retirement and VA, and also phases-out the credit at lower AdjustedGross Income level,
costs $139.4b / 11
.
 
 
Refundable Child Tax Credit: House temporarily reduces earnings threshold to $0,
costs$18.3b / 11
; Senate temporarily reduces earnings threshold to $8100,
costs $7.2b / 11
.
 
American Opportunity Tax Credit: House – 40% of the credit is refundable, costs
$3.5b / 11
;Senate 30% of the credit is refundable,
costs
 
$2.7b / 11
.
 
 
Extension of homebuyer credit: House waives repayment requirement unless home isresold within 36 months,
costs $2,562 / 11
; Senate waives repayment requirement unlesshome is resold within 24 months, increases credit to $15,000, eliminates the income phase-out, and extends the credit through 2009,
costs $35.5b /11
. Business Taxation
 
 
3% withholding on government contracts: House permanently repeals,
costs $10.9b / 11
;Senate has 1-year delay,
costs $291m / 11
.
 
 
Extension of Net Operating Loss carryback period to 5 years: House imposes a 10% haircut,
costs $54b / 2, $15b / 11
; Senate has no haircut,
costs $67.5b /2,
 
$ 19.5b / 11
.Energy
 
 
Section 25C investment tax credit for improving energy efficiency of existing homes.House
costs $4.3b /11
; Senate imposes stricter qualification standards,
costs $1.9b / 11
. Bonds
 

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