Vote Smart's Synopsis:

Vote on a motion to waive the budget act with respect to S Amdt 1709 to HR 4210, which replaces the original language of the bill and replaces it with alternative amendments to federal tax code, including providing a tax credit for first-time home buyers and a capital gains tax reduction for noncorporate taxpayers.

Highlights:

- Provides a tax credit for first-time home buyers equal to 10 percent of the purchase price of a home, not to exceed $5,000 [sec. 141 (23) (a)]. - Provides for the following capital gains tax deductions for taxpayers other than corporations [Sec. 111 (1202) (a-b)]:

- 15 percent on a one year gain; - 30 percent on a one year gain; and - 45 percent on a three year gain.

- Establishes a special depreciation allowance for equipment acquired as investment property between February 1, 1992 and January 1, 1993, equal to 15 percent of the adjusted basis of the equipment, which is the original price plus the cost of improvements minus any depreciation. The deduction is capped at 50 percent for the taxable year in which the equipment is placed in service, and 50 percent will be allowed for the succeeding taxable year [sec. 122 (a) (j) (1-3)]. - Designates real estate development as single trade or business activity, thus allowing taxpayers providing real estate development services to receive a deduction or tax credit for passive losses accrued during the previous taxable year (Sec. 121). - Repeals the luxury excise tax (Sec. XXX). - Applies the limits of Medicare Part B coverage to medical services for retirees who are insured under the Federal Employees Health Benefit Program [sec. 213 (a) (1)].

Full Bill Text

Full Bill Text