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Title: Extension of Tax Cuts for Those Making Under $250,000
Vote Smart's Synopsis:
Vote on a motion to invoke cloture on an amendment to HR 4853 that extends certain tax provisions.
- Substitutes the following for individual income tax reductions (Sec. 101):
- For the 28 percent tax bracket, a 25 percent tax rate;
- For the 31 percent tax bracket, a 28 percent tax rate;
- 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.
- Extends full federal funding for unemployment compensation until January 3, 2012 (Sec. 801).
- Amends the Hope Scholarship Credit by (Sec. 207):
- Increasing from $1,000 to $2,000 the maximum amount of qualified tuition and expenses paid by the taxpayer during the taxable year;
- Decreasing from 50 percent to 25 percent the expenses paid as exceeds $2,000;
- Increasing from 2 years to 4 years the time allowed for such a tax credit to apply;
- Increasing from the first 2 years to the first 4 years of post-secondary education that the credit is allowed for tuition, fees, and course materials; and
- By renaming the 'Hope Scholarship Credit' 'American Opportunity Credit'.
- Specifies that the applicable exclusion amount for the estate tax is $3.5 million (Sec. 303).
- Specifies that the applicable exclusion amount for a decedent dying in a calendar year after 2010 is to be increased by an amount equal to the dollar amount, multiplied by the cost of living adjustment determined by the Consumer Price Index of calendar year 2009, rounded to the nearest $10,000 (Sec. 303).
- Increases the dollar limitation on depreciable business assets claimed as expenses from $25,000 to $125,000, and also specifies that the dollar limitation will be reduced by the amount by which the cost of the property exceeds $500,000 (Sec. 401).
- Excludes, temporarily, 100 percent of gain from certain small business stocks until January 1, 2012 (Sec. 811).
- Increases the alternative minimum tax exemption amount (Sec. 501):
- From $70,950 to $72,450 for taxable years beginning in 2010 in the case of a joint return or a surviving spouse;
- From $72,450 to $74,450 for taxable years beginning in 2011 in the case of a joint return or a surviving spouse;
- From $46,700 to $47,450 for taxable years beginning in 2010 in the case of an individual who is not married and is not a surviving spouse; and
- From $47,450 to $48,450 for taxable years beginning in 2010 in the case of an individual who is not married and is not a surviving spouse.
- Extends tax-free distributions from individual retirement plans for charitable purposes from December 31, 2009, to December 31, 2011 (Sec. 636).
- Extends a credit for an alternative fuel vehicle refueling property from December 21, 2010, to December 31, 2011 (Sec. 821).
- Extends tax-exempt eligibility for home loans guaranteed by Federal home loan banks from December 31, 2010 to December 31, 2011 (Sec. 606).
- Extends the new energy efficient home credit to include any home acquired prior to December 31, 2011, whereas existing law excluded homes acquired after December 31, 2009 (Sec. 616).
- Extends the Making Work Pay credit so that it can be claimed for all taxable years beginning prior to December 31, 2011, whereas existing law restricted the credit to taxable years beginning prior to December 31, 2010 (Sec. 841).
- Extends the Work Opportunity credit so that it can be applied to wages earned prior to December 31, 2011, whereas existing law restricted the application of the credit to wages earned prior to August 31, 2011 (Sec. 842).
- Increases the refundable portion of the child tax credit, from 15 percent of the taxpayer's earned income in excess of $10,000 to 15 percent of the taxpayer's earned income in excess of $3,000, effective December 31, 2010 (Sec. 103).
- Specifies that the bill is designated as an emergency bill for the purposes of pay-as-you-go principles (Sec. 1002).