TEGL03-09c.pdf

ETA Advisory File Text

Attachment C. 123 STAT. 306 PUBLIC LAW 111 5 FEB. 17 2009 DIVISION B TAX UNEMPLOYMENT HEALTH STATE FISCAL RELIEF AND OTHER PROVISIONS TITLE I TAX PROVISIONS American Recovery and Reinvestment Tax Act of 2009 Section 1221 26 USC 1 et seq. 26 USC 1 note. SEC. 1000. SHORT TITLE ETC. a SHORT TITLE. This title may be cited as the American Recovery and Reinvestment Tax Act of 2009 . b REFERENCE. Except as otherwise expressly provided whenever in this title an amendment or repeal is expressed in terms of an amendment to or repeal of a section or other provision the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. c TABLE OF CONTENTS. The table of contents for this title is as follows TITLE I TAX PROVISIONS Sec. 1000. Short title etc. Subtitle A Tax Relief for Individuals and Families PART I GENERAL TAX RELIEF Sec. 1001. Making work pay credit. Sec. 1002. Temporary increase in earned income tax credit. Sec. 1003. Temporary increase of refundable portion of child credit. Sec. 1004. American opportunity tax credit. Sec. 1005. Computer technology and equipment allowed as a qualified higher education expense for section 529 accounts in 2009 and 2010. Sec. 1006. Extension of and increase in first-time homebuyer credit waiver of requirement to repay. Sec. 1007. Suspension of tax on portion of unemployment compensation. Attachment C. Sec. 1008. Additional deduction for State sales tax and excise tax on the purchase of certain motor vehicles. PART II ALTERNATIVE MINIMUM TAX RELIEF Sec. 1011. Extension of alternative minimum tax relief for nonrefundable personal credits. Sec. 1012. Extension of increased alternative minimum tax exemption amount. Subtitle B Energy Incentives PART I RENEWABLE ENERGY INCENTIVES Sec. 1101. Extension of credit for electricity produced from certain renewable resources. Sec. 1102. Election of investment credit in lieu of production credit. Sec. 1103. Repeal of certain limitations on credit for renewable energy property. Sec. 1104. Coordination with renewable energy grants. PART II INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND QUALIFIED ENERGY CONSERVATION BONDS Sec. 1111. Increased limitation on issuance of new clean renewable energy bonds. Sec. 1112. Increased limitation on issuance of qualified energy conservation bonds. PART III ENERGY CONSERVATION INCENTIVES Sec. 1121. Extension and modification of credit for nonbusiness energy property. Sec. 1122. Modification of credit for residential energy efficient property. Sec. 1123. Temporary increase in credit for alternative fuel vehicle refueling property. PART IV MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION Sec. 1131. Application of monitoring requirements to carbon dioxide used as a tertiary injectant. Attachment C. n POQ96SHH1PUBLIC LAW 111 5 FEB. 17 2009 123 STAT. 307 PART V PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES Sec. 1141. Credit for new qualified plug-in electric drive motor vehicles. Sec. 1142. Credit for certain plug-in electric vehicles. Sec. 1143. Conversion kits. Sec. 1144. Treatment of alternative motor vehicle credit as a personal credit allowed against AMT. PART VI PARITY FOR TRANSPORTATION FRINGE BENEFITS Sec. 1151. Increased exclusion amount for commuter transit benefits and transit passes. Subtitle C Tax Incentives for Business PART I TEMPORARY INVESTMENT INCENTIVES Sec. 1201. Special allowance for certain property acquired during 2009. Sec. 1202. Temporary increase in limitations on expensing of certain depreciable business assets. PART II SMALL BUSINESS PROVISIONS Sec. 1211. 5-year carryback of operating losses of small businesses. Sec. 1212. Decreased required estimated tax payments in 2009 for certain small businesses. PART III INCENTIVES FOR NEW JOBS Sec. 1221. Incentives to hire unemployed veterans and disconnected youth. PART IV RULES RELATING TO DEBT INSTRUMENTS Sec. 1231. Deferral and ratable inclusion of income arising from business indebtedness discharged by the reacquisition of a debt instrument. Sec. 1232. Modifications of rules for original issue discount on certain high yield obligations. PART V QUALIFIED SMALL BUSINESS STOCK Sec. 1241. Special rules applicable to qualified small business stock for 2009 and 2010. Attachment C. PART VI S CORPORATIONS Sec. 1251. Temporary reduction in recognition period for built-in gains tax. PART VII RULES RELATING TO OWNERSHIP CHANGES Sec. 1261. Clarification of regulations related to limitations on certain built-in losses following an ownership change. Sec. 1262. Treatment of certain ownership changes for purposes of limitations on net operating loss carryforwards and certain built-in losses. Subtitle D Manufacturing Recovery Provisions Sec. 1301. Temporary expansion of availability of industrial development bonds to facilities manufacturing intangible property. Sec. 1302. Credit for investment in advanced energy facilities. Subtitle E Economic Recovery Tools Sec. 1401. Recovery zone bonds. Sec. 1402. Tribal economic development bonds. Sec. 1403. Increase in new markets tax credit. Sec. 1404. Coordination of low-income housing credit and low-income housing grants. Subtitle F Infrastructure Financing Tools PART I IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of financial institutions. Sec. 1502. Modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions. Sec. 1503. Temporary modification of alternative minimum tax limitations on taxexempt bonds. Sec. 1504. Modification to high speed intercity rail facility bonds. PART II DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS Sec. 1511. Delay in application of withholding tax on government contractors. ate Nov Attachment C. PUBLIC LAW 111 5---FEB. 17 2009 123 STAT. 337 A certification under subclause II shall be in such form and manner and filed at such time as the Secretary may by regulations prescribe. iii INCOME FROM A SMALL BUSINESS. For purposes of clause ii income from a small business means with respect to any individual income from a trade or business the average number of employees of which was less than 500 employees for the calendar year ending with or within the preceding taxable year of the individual. iv SEPARATE RETURNS. In the case of a married individual within the meaning of section 7703 who files a separate return for the taxable year for which the amount of the installment is being determined clause ii I shall be applied by substituting 250 000 for 500 000 . v ESTATES AND TRUSTS. In the case of an estate or trust adjusted gross income shall be determined as provided in section 67 e . . PART III INCENTIVES FOR NEW JOBS SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED YOUTH. a IN GENERAL. Subsection d of section 51 is amended by adding at the end the following new paragraph 14 CREDIT ALLOWED FOR UNEMPLOYED VETERANS AND DISCONNECTED YOUTH HIRED IN 2009 OR 2010. A IN GENERAL. Any unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010 shall be treated as a member of a targeted group for purposes of this subpart. B DEFINITIONS. For purposes of this paragraph i UNEMPLOYED VETERAN. The term unemployed veteran means any veteran as defined in paragraph 3 B determined without regard to clause ii thereof who is certified by the designated local agency as I having been discharged or released from active duty in the Armed Forces at any time during the 5-year period ending on the hiring date and II being in receipt of unemployment compensation under State or Federal law for not less Attachment C. 123 STAT. 338 PUBLIC LAW 111 5 FEB. 17 2009 than 4 weeks during the 1-year period ending on the hiring date. ii DISCONNECTED YOUTH. The term disconnected youth means any individual who is certified by the designated local agency I as having attained age 16 but not age 25 on the hiring date II as not regularly attending any secondary technical or post-secondary school during the 6- month period preceding the hiring date III as not regularly employed during such 6-month period and IV as not readily employable by reason of lacking a sufficient number of basic skills. . 26 USC 51. b EFFECTIVE DATE. The amendments made by this section shall apply to individuals who begin work for the employer after December 31 2008. PART IV RULES RELATING TO DEBT INSTRUMENTS SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION OF A DEBT INSTRUMENT. a IN GENERAL. Section 108 relating to income from discharge of indebtedness is amended by adding at the end the following new subsection i DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION OF A DEBT INSTRUMENT. 1 IN GENERAL. At the election of the taxpayer income from the discharge of indebtedness in connection with the reacquisition after December 31 2008 and before January 1 2011 of an applicable debt instrument shall be includible in gross income ratably over the 5-taxable-year period beginning with A in the case of a reacquisition occurring in 2009 the fifth taxable year following the taxable year in which the reacquisition occurs and B in the case of a reacquisition occurring in 2010 the fourth taxable year following the taxable year in which Attachment C. the reacquisition occurs.