Signed by President Barack Obama II

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that amends the tax code.

Highlights:

• Amends provisions of the "Economic Growth and Tax Relief Reconciliation Act of 2001" to extend expiration from December 31, 2010, to December 31, 2012 (Sec. 101).

• Amends provisions of the "Jobs and Growth Tax Relief Reconciliation Act of 2003" to extend expiration from December 31, 2010, to December 31, 2012 (Sec. 102).

• Extends the American Opportunity Tax Credit from taxable years beginning in 2009 or 2010 to taxable years beginning in 2009 through 2012 (Sec. 103).

• Extends the period of time in which the allowable credit for the Child Tax Credit can be increased by 15 percent of the taxpayer's taxable income in excess of $3,000 from taxable years 2009 or 2010 to taxable years beginning in 2009 through 2012 (Sec. 103).

• Extends the reduced marriage penalty of $5,000, and the increased credit percentage of 45 percent for taxpayers with 3 or more qualifying children, for the Earned Income Tax Credit from taxable years beginning in 2009 or 2010 to taxable years beginning in 2009 through 2012 (Sec. 103).

• Increases the Alternative Minimum Tax exemption amount for taxpayers other than corporations in the cases of joint returns or surviving spouses in taxable years beginning in 2010 from $70,950 to $72,450, and in taxable years beginning in 2011 from $70,950 to $74,450 (Sec. 201).

• Increases the Alternative Minimum Tax exemption amount for taxpayers other than corporations in the cases of individuals who are not married and are not surviving spouses in taxable years beginning in 2010 from $46,700 to $47,450, and in taxable years beginning in 2011 from $47,450 to $48,450 (Sec. 201).

• Repeals the provisions of the "Economic Growth and Tax Relief Reconciliation Act of 2001" that eliminated the estate tax for estates of individuals dying after December 31, 2009 (Sec. 301).

• Specifies that the applicable exclusion amount for a credit against a tax on a decedent's estate is set at $5 million (Sec. 302).

• Specifies that the tax on any estate over $500,000 is capped at $155,800 plus 35 percent of the excess of such amount over $500,000 (Sec 302).

• Increases the depreciation deduction for property acquired after September 8, 2010, and before January 1, 2012, from 50 percent to 100 percent (Sec. 401).

• Specifies that the dollar limitation for deductible small business expenses is set at $125,000 for taxable years beginning in 2012, and at $25,000 for taxable years beginning after 2012 (Sec. 402).

• Extends full Federal funding for unemployment compensation from November 30, 2010, to January 3, 2012 (Sec. 501).

• Specifies that the tax rate for Social Security taxes paid by an employer for taxable years beginning in the payroll tax holiday period is set at 10.4 percent (Sec. 601).

• Specifies that the tax rate for Social Security taxes deducted from an employee's wages during the payroll tax holiday period is set at 4.2 percent (Sec. 601).

• Defines "payroll tax holiday period" as "calendar year 2011" (Sec. 601).

• Extends the expiration date of tax credits for biodiesel and renewable diesel used as fuel from December 31, 2009, to December 31, 2011 (Sec. 701).

• Extends eligibility for the New Energy Efficient Home Credit from homes acquired before December 31, 2009, to homes acquired before December 31, 2011 (Sec. 703).

• Extends the expiration date of tax credits for certain alternative fuels from December 31, 2009, to December 31, 2011 (Sec. 704).

• Extends eligibility for tax credits for nonbusiness energy property from property placed in service before December 31, 2010, to property placed in service before December 31, 2011 (Sec. 710).

• Extends the expiration date of certain tax credits for tuition and related expenses from December 31, 2009, to December 31, 2011 (Sec. 724).

• Specifies that the national limitation for the "New Markets" tax credit is set at $3.5 billion for 2010 and 2011 (Sec. 733).

Full Bill Text

Vote Smart's Synopsis:

Vote to concur with House amendments and adopt additional amendments to a bill that amends the tax code.

Highlights:

• Amends provisions of the "Economic Growth and Tax Relief Reconciliation Act of 2001" to extend expiration from December 31, 2010, to December 31, 2012 (Sec. 101).

• Amends provisions of the "Jobs and Growth Tax Relief Reconciliation Act of 2003" to extend expiration from December 31, 2010, to December 31, 2012 (Sec. 102).

• Extends the American Opportunity Tax Credit from taxable years beginning in 2009 or 2010 to taxable years beginning in 2009 through 2012 (Sec. 103).

• Extends the period of time in which the allowable credit for the Child Tax Credit can be increased by 15 percent of the taxpayer's taxable income in excess of $3,000 from taxable years 2009 or 2010 to taxable years beginning in 2009 through 2012 (Sec. 103).

• Extends the reduced marriage penalty of $5,000, and the increased credit percentage of 45 percent for taxpayers with 3 or more qualifying children, for the Earned Income Tax Credit from taxable years beginning in 2009 or 2010 to taxable years beginning in 2009 through 2012 (Sec. 103).

• Increases the Alternative Minimum Tax exemption amount for taxpayers other than corporations in the cases of joint returns or surviving spouses in taxable years beginning in 2010 from $70,950 to $72,450, and in taxable years beginning in 2011 from $70,950 to $74,450 (Sec. 201).

• Increases the Alternative Minimum Tax exemption amount for taxpayers other than corporations in the cases of individuals who are not married and are not surviving spouses in taxable years beginning in 2010 from $46,700 to $47,450, and in taxable years beginning in 2011 from $47,450 to $48,450 (Sec. 201).

• Repeals the provisions of the "Economic Growth and Tax Relief Reconciliation Act of 2001" that eliminated the estate tax for estates of individuals dying after December 31, 2009 (Sec. 301).

• Specifies that the applicable exclusion amount for a credit against a tax on a decedent's estate is set at $5 million (Sec. 302).

• Specifies that the tax on any estate over $500,000 is capped at $155,800 plus 35 percent of the excess of such amount over $500,000 (Sec 302).

• Increases the depreciation deduction for property acquired after September 8, 2010, and before January 1, 2012, from 50 percent to 100 percent (Sec. 401).

• Specifies that the dollar limitation for deductible small business expenses is set at $125,000 for taxable years beginning in 2012, and at $25,000 for taxable years beginning after 2012 (Sec. 402).

• Extends full Federal funding for unemployment compensation from November 30, 2010, to January 3, 2012 (Sec. 501).

• Specifies that the tax rate for Social Security taxes paid by an employer for taxable years beginning in the payroll tax holiday period is set at 10.4 percent (Sec. 601).

• Specifies that the tax rate for Social Security taxes deducted from an employee's wages during the payroll tax holiday period is set at 4.2 percent (Sec. 601).

• Defines "payroll tax holiday period" as "calendar year 2011" (Sec. 601).

• Extends the expiration date of tax credits for biodiesel and renewable diesel used as fuel from December 31, 2009, to December 31, 2011 (Sec. 701).

• Extends eligibility for the New Energy Efficient Home Credit from homes acquired before December 31, 2009, to homes acquired before December 31, 2011 (Sec. 703).

• Extends the expiration date of tax credits for certain alternative fuels from December 31, 2009, to December 31, 2011 (Sec. 704).

• Extends eligibility for tax credits for nonbusiness energy property from property placed in service before December 31, 2010, to property placed in service before December 31, 2011 (Sec. 710).

• Extends the expiration date of certain tax credits for tuition and related expenses from December 31, 2009, to December 31, 2011 (Sec. 724).

• Specifies that the national limitation for the "New Markets" tax credit is set at $3.5 billion for 2010 and 2011 (Sec. 733).

Full Bill Text

Vote Smart's Synopsis:

Vote to concur with Senate amendments and adopt additional amendments to a bill that provides certain tax cuts for taxpayers.

Highlights:

• Exempts the following provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 from an expiration date of December 31, 2010 (Sec. 101):
• Provisions relating to 'individual income tax rate reductions'; -Provisions relating to 'tax benefits related to children';
• Provisions relating to 'marriage penalty relief'; and
• Provisions relating to 'affordable education provisions'.

• Substitutes the following for individual income tax reductions (Sec. 102):
• For the 31 percent tax bracket, a 25 percent tax rate reduced from 28 percent; and
• For the 36 percent tax bracket, a 33 percent tax rate, unless the income of the individual is not greater than the 'applicable amount' divided by the dollar amount at which the bracket begins.

• Defines 'applicable amount' as the excess of $250,000 divided by the sum of the basic standard deduction and the exemption amount.

• Describes formulas for capping the maximum capital gains tax for a taxable year (Sec. 102).

• Increases the limitation on expensing by small businesses of depreciable assets from $25,000 to $125,000 and increases the threshold at which the phase out of such limitations begins from $200,000 to $500,000 (Sec. 201).

• Increases the alternative minimum tax exemption amount from $70,950 to $72,450 for years beginning in 2009 in the case of a joint return or a surviving spouse, and sets the amount at $47,450 for years beginning in 2010 or 2011 in the case of an individual who is not married and is not a surviving spouse (Sec. 302).

• Requires compliance with the 'Statutory Pay-As-You-Go Act of 2010' (Sec. 401).

Full Bill Text

Full Bill Text

Full Bill Text

Full Bill Text