Bob Inglis

Provision

Details

Cost

Individual AMT Patch

AMT patch for 2009.

$69.8 billion

Higher education expenses

Allows computer technology and equipment as qualified higher education expense for 2009 and 2010. 

$6 million

Tax incentive for purchasing certain motor vehicles

Deduction is limited to state and local sales and excise taxes only.  In the case of taxpayers that do not itemize their deductions, the new deduction would be in addition to their standard deduction.

$1.7 billion

Commuting benefits 

Equalizes tax-free transit and parking benefits, sets both at $230 for 2009, and indexes equally in 2010. 

$192 million

Refundable Child Tax Credit

Reduces earnings threshold to $3,000 for 2009 and 2010.

$14.8 billion

Making Work Pay Credit

Provides up to $400 credit per worker for 2009 and 2010.  Phases-out for one worker families from $75,000 to $95,000 and from $150,000 to $190,000 for two worker families. Reduces the credit by amounts paid by SSA, Railroad Retirement and VA. Spouse not required to have a SSN or TIN to qualify.

$116 billion

American Opportunity Tax Credit/Education

$2,500 tax credit for college, 40% refundability. Adds funding for the possessions to administer refunds.

$13 billion

Homebuyer credit

$8,000 tax credit through 11/30/2009 and waives repayment requirement unless home is resold within 36 months. Phases out for $75k ( ind) and $150k (fam)

$6.7 billion

Unemployment benefits

Excludes up to $2,400 of unemployment insurance benefits from 2009 gross income.

$4.7 billion

Provision

Details

Cost

Cancellation of indebtedness income

Generally can defer for 4-5 years and spread ratably over the following 5 years; applies to all re-acquisitions; also exempts certain refinanced debt instruments from AHYDO interest disallowance rules.

$42.5 billion

New markets tax credit

Increases new markets tax credit equity limitation to a total of $5 billion for calendar years 2008 and 2009. 

$815 million

Election to accelerate AMT and research credits in lieu of bonus depreciation 

$805 million

Small business capital gains exclusion  

Temporarily increases section 1202 small business capital gains exclusion to 75%.

$829 million

Built-in gains holding period for S corporations

Temporarily cuts the built-in gains holding period for S corporations to seven years from 10 years. 

$415 million

Low-income housing credit

Accelerates low-income housing credits and eliminates reduction in basis for receipt of certain federal grants for purposes of determining the credit.

$143 million

3% withholding on government contracts

Delays for 1 year.

$291 million

Net Operating Losses

Only certain businesses eligible ($15,000,000 or less gross receipts test) and only for NOLs in 2008.

$4.7 billion

Work opportunity credit

Expands credit to veterans released from active duty during the five years prior to the hiring date and disconnected youth hired in 2009 and 2010. 

$231 million

TARP-triggered ownership changes and NOLs

Provides that TARP-triggered ownership changes will not limit use of NOLs.

$3.2 billion

Small Business Estimated Tax

Reduces the 2009 required estimated tax payments for certain small businesses. 

No estimated cost

Provision

Details

Cost

Credit for investment in advanced energy property 

$2.3b credit to allocate. Costs $1.65b / 11.

$1.65 billion

Modification of credits for alternative motor vehicles and qualified plug-in electric drive vehicles

Modifies tax credit for each qualified plug-in vehicle placed in service during taxable year - capped at 200,000 cars per manufacturer; Costs $2b / 11.

$2 billion

Credit for plug-in electric vehicle conversion

Included in $2 billion above

Treatment of alternative motor vehicle credit

Included in $2 billion above

Grants for specified energy property in lieu of tax credits

2009 – 2011 outlay of $158m; largely offset by increased 2009-2016 revenue of $153m.

$158 million; offset by $153 million revenue increase

Section 25C investment tax credit for improving energy efficiency of existing homes

Extends tax credits for improvements to energy-efficient existing homes through 2010.  Applies to tax years after 12/31/08.

$2 billion

Temporarily increase credit for alternative fuel vehicle refueling property

$54 million

Provision

Details

Cost

High-speed rail bonds 

Modifies speed requirement for high-speed rail bonds.

$288 million

Industrial Development Bonds

Expands industrial development bonds to include creation of intangible property and to eliminate proceeds restriction.

$203 million

Grants to States for low-income housing in lieu of low-income housing credit 2009 allocations 

2009 outlay of $3b, largely offset over 11 years by revenue increase of $2.9b.

$67 million

School Construction Bonds

Authorizes $22b in bonds.

$9.9 billion

Recovery Zone Bonds

Authorizes $25b in bonds, 45% subsidy to issuers of Recovery Zone Economic Development Bonds.

$5.4 billion

Build America Bonds - Taxable Bond option for governmental issuers

Provides two years in which issuer can issue taxable bonds; 35% subsidy for all issuers.

$4.3 billion

Tax credit rules for RICs

Provides rules for RICs to pass through tax credits.

No cost.

Qualified energy conservation bonds

Additional $2.4b authorization. Provides that green community bonds shall not be deemed private activity bonds for purposes of allocation rules for these bonds (note that this does remove such bonds from volume cap).

$803 million

AMT and private activity bonds

Also provides AMT relief for current refundings of private activity bonds issued since 1/1/04 during 2009 and 2010.

$555 million

Provision

Details

Cost

Trade adjustment assistance program 

Extension and expansion for two years, including Health Coverage Tax Credit.

$1.6 billion

Byrd Amendment

Prohibits collection of certain payments made under Continued Dumping and Subsidy Offset Act (Byrd Amendment) disbursements on imports from Canada and Mexico.

$90 million

Provision

Details

Cost

Health IT

Provides $35 billion in HIT adoption incentives, beginning in 2011.  Penalizes non-adopters beginning in 2015.  Each physician could collect up to $65,000 in incentives, while a hospital could receive as much as $16.5 million in incentives.  No restrictions on how physicians or hospitals could use leftover incentive payments if they purchase a low-cost HIT system.

$19.2 billion

Critical Access Hospitals are eligible for smaller incentive payments

$2 billion for ONCHIT grants and loans.

Mostly House language on privacy, with some discretion by Secretary on accounting for disclosure and small exception for breach notification. 

Allows State AGs to enforce the federal HIPAA law. 

Increases the limit on civil monetary penalties to $1.5 million and allows plaintiffs to share in these awards. 

Net cost: $19.2 billion

Comparative Effectiveness Research

Provides $1.1 billion for a new federal board to conduct “comparative” effectiveness research. 

The new federal board (Federal Coordinating Council on Comparative Effectiveness Research) cannot mandate coverage and payment decisions, but would allow the board to make recommendations.  Drops the Senate language that would have prevented access restrictions in Medicare.

$1.1 billion

COBRA

Individuals making up to $125,000 and couples earning up to $250,000 would be eligible for 65% premium subsidy for 9 months.  The subsidy begins to phase-out above these income levels and would not apply to individuals who earn more than $145,000 and couples making more than $290,000.

Allows individuals to opt-in to a cheaper employer plan, if one is offered.

$24.7 billion

Medicaid Provisions

Temporary Federal Medical Assistance Percentage (FMAP) increase

Regulation Moratorium

Each state would receive an automatic 6.2% increase in its FMAP rate.  States could also receive additional increases based off the increase in the unemployment rate in the state. 65% of new spending goes toward the across-the-board increases for all States and 35% of the increase based off unemployment. The increase is from October 1, 2008 through December 31, 2010.

Contains a 60-day extension of the moratoria on Medicaid regulations produced by the Bush Administration.

$90.1 billion

Medicare Provisions

Long-Term Care Hospital earmarks and the delay of hospice and Indirect Medical Education (IME) regulations.

$338 million

Qualified Individual (QI) program

Provides a one-year extension through 2010 of the QI program, which helps low-income Medicare beneficiaries with their Part B premiums. 

$562 million

Transitional Medical Assistance (TMA)

Extends TMA through December 31, 2010 (current program expires June 30).  TMA helps workers who are transitioning from welfare to work keep their Medicaid benefits.

$1.3 billion

Provision

Details

Cost

Waives interest on Federal loans to state unemployment benefit programs through CY 2010

$1.1 billion

Extends TANF supplemental grants through FY 2010

$319 million

Allows States to spend TANF carryover funds on noncash benefits

No long-run cost

New TANF “emergency fund” for States that increase welfare caseloads, and reduces work and activity requirements for welfare recipients

Provides States up to $5 billion over 2 years for States that increase welfare caseloads; also allows States to ignore recent caseload rises in determining the share of welfare recipients expected to engage in work, education, training and other productive activities.

$3 billion

Extend current temporary Federal extended unemployment insurance (UI) program

Extends current temporary program through CY 2009, with a phaseout through mid-2010, using general revenue. 

$27 billion

Federalize State portion of permanent law Federal/State extended UI benefits (EB) program

For States that trigger onto the EB program (9 currently, including AK, CT, ID, MI, NC, OR, PR, RI, and WA), the Federal government will pick up the State share (50%) of program costs through CY 2009, with a phaseout through mid CY 2010. 

Costs in $27 billion above.

Continue EB eligibility despite lack of recent work

Continue eligibility for EB payments despite the unemployed worker’s lack of recent work (an EB program requirement that would otherwise end eligibility as some individuals collect benefits over long periods and prior work becomes more remote).  

Costs in $27 billion above.

Increase in weekly UI benefits

Increases weekly UI checks by $25, using general revenue.

$8.8 billion

Unemployment Insurance “Modernization”

Offers States a one-time payment of part of $7 billion in Federal unemployment funds if they have permanently expanded eligibility for UI benefits to include recent entrants to work, part time workers and others. 

$7 billion

One-time payment to recipients of certain federal benefits

One-time payment ($250) to Social Security beneficiaries, SSI recipients (and also certain veterans and those receiving Railroad Retirement). 

New provision:  one-time refundable credit of $250 in 2009 to certain government retirees who are not eligible for Social Security benefits.

$14.3 billion