Since 2000

Tax Relief and Health Care Act of 2006

• Extensions and modifications of certain tax credits. Extended and modified new markets tax credit for certain equity investments in a qualified community development entity (CDE) through 2008, extended and modified research tax credit through 2007, extended the Indian employment tax credit through 2007, and extended work opportunity tax credit and welfare-to-work tax credit for 2006 and combined and modified these for 2007.
• Extensions and modifications of certain deductions. Extended allowance of sales tax deduction in lieu of deduction for state and local income taxes through 2007, extended the deduction for teachers for school related expenses through 2007, extended deduction for qualified tuition and related expenses through 2007, and extended the enhanced deduction for computer technology and equipment through 2007.
• Earned Income Tax Credit. Extended election to include combat pay that is otherwise excluded from gross income in earned income for Earned Income Tax Credit.
• Zone academy bonds. Extends availability of qualified zone academy bonds (QZABs) for school modernization, equipment and teacher training in high poverty areas, imposes new arbitrage requirements and new spending requirements on QZABs.
• Economic development provisions. Extended tax incentives established by the Taxpayer Relief Act of 1997 for the District of Columbia through 2007, including designation of D.C. zones, wage credit, tax-exempt financing authority for bonds, zero-percent capital gains rate for certain qualified assets, and first-time homebuyer credit. Extended placed-in-service deadline for certain Gulf Opportunity Zone property extension property to qualify for additional first-year depreciation deduction. Provided economic development credit to American Samoa.
• Business provisions. Extended accelerated depreciation for business property on Indian reservations, extended 15-year straight-line cost recovery for qualified leasehold and restaurant improvements.
• Energy Tax Provisions. Allowed credit for electricity produced from certain renewable resources through 2008, extended placed-in-service date for tax credit for electricity produced at certain qualified facilities, extended and expanded clean renewable energy bonds (authorized an additional $400 million of CREBs and increased the maximum amount that may be allocated to qualified projects of governmental bodies to $750 million), allowed deduction for certain energy efficient commercial building property through 2008, extended and expanded to petroleum products expensing of "Brownfields" environmental remediation costs through 2007 for qualified contaminated sites.
• Health Savings Accounts (HSAs). Allowed a one-time rollover of health reimbursement account (HRA) and health flexible spending arrangement (FSA) funds into HSAs through 2011, repealed provision that limited the maximum annual deductible contribution to an HSA to that under a high-deductible insurance policy effective in 2007, allowed earlier indexing of cost of living adjustments for taxable years beginning after 2007, allowed full deductible contribution for months preceding the month that taxpayer is in high deductible plan beginning in 2007, and allowed one-time direct contribution to an HSA from an individual retirement arrangement (IRA) as of 2007.
• AMT provisions. Allowed refundable long-term individual AMT credit with respect to certain long-term unused alternative minimum tax (AMT) credits existing before January 1, 2013.
• Manufacturing deduction. Allowed deduction for income attributable to domestic production activities in Puerto Rico through 2007.

Pension Protection Act of 2006

• IRA provisions. Made permanent the pension and IRA provisions in EGTRRA (increased contribution limits to IRAs and 401(k)s to $5,000 and $15,000 respectively and catch-up contributions for IRAs, increased limitation on exclusion for elective deferrals, increased annual addition limitation for defined contribution plans). Indexed certain income limits for IRA contributions for inflation beginning in 2007; and allowed direct rollovers from retirement plans to ROTH IRAs; allowed direct deposit of tax refunds into IRAs.
• Saver's Credit. Made the Saver’s Credit permanent and annually indexed its income threshold to inflation beginning in 2007.
• Pension plan funding rules. Established new minimum financing standards for single- and multi-employer defined benefit pension plans and increased the deduction limits for these plans.
• Pension plans and health care. Allowed transfer of excess single- and multi-employer defined benefit pension assets to retiree medical accounts, under certain conditions; permitted tax-free distribution from government retirement plans to pay health and long-term care insurance premiums; allowed deductions for contributions to fund a reserve for medical benefits for future years; made tax deductible, portions of annuity and life insurance contracts used to pay health and long-term care insurance premiums.
• Qualified tuition programs. Extended EGTRRA modifications to qualified tuition program rules, including tax exempt withdrawals from qualified tuition accounts and certain rules regarding the coordination with Hope and lifetime learning credit programs.
• PBGC. Changed some rules regarding Pension Benefit Guarantee Corporation premiums and interest rates for small employer plans, and created special funding rules for defined benefit plans maintained by commercial airlines, among other changes.
• Charitable contributions and tax exempt organizations. Allowed tax-free distributions from IRAs to certain public charities from age 70 ½ and older, not to exceed $100,000 per taxpayer; extended current law charitable deductions for food and book inventories; adjusted basis of S corporation stock for certain charitable contributions; encouraged contributions of property interest made for conservation purposes; restricted qualifying contributions of clothing and other household items to those in good condition, required greater substantiation (e.g., receipts for all cash gifts) for gifts made, and penalized contributors and appraisers who grossly overvalue donated property.
• Tariffs. Included various small provisions relating to tariffs.

Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA)

• Depreciation. Extended the increased expensing allowance for depreciable business property from $25,000 to $100,000; increased threshold amount for determining reductions to the expensing allowance; and increased the period during which a taxpayer may revoke an election to expense depreciable business property through 2009.
• Capital gains. Extended through 2010 reductions in capital gains and dividends tax rates (5 percent for taxpayers in the 15 percent bracket and 15 percent for others) enacted by JGTRRA (2003).
• Inflation adjustment. Accelerated the inflation adjustment to the exclusion amount for foreign earned income to 2006 from 2008; also, extended through 2008 certain exemptions for income of controlled foreign companies.
• AMT. Increased the AMT tax exemption, last altered in 2004 under WFTRA (2004), to $42,500 for single filers and $62,550 for married filers, and extended this through 2006.
• IRAs and Roth IRAs. Allowed taxpayers to convert traditional IRA balances into Roth IRAs; eliminated the income limit ($100,000) on Roth IRA conversions starting in 2010.
• Unearned income of minor children. Increased the age of minor children whose unearned income is taxed as if parent's income from 14 to 18 years old.
• Excise tax penalty. Imposed an excise tax penalty on certain tax-exempt entities for participation in prohibited tax shelter activities.

Energy Tax Incentives Act of the Energy Policy Act of 2005

• Energy Infrastructure Tax Incentives. Extended and modified credit for producing electricity from renewable resources through 2007; Allowed issuance of clean renewable energy bonds through 2007; Provided credit for production from advance nuclear power facilities and investment in clean coal facilities; Allowed a 15-year cost recovery period for the depreciation of certain electric transmission property; Allowed a taxpayer election to carryback net operating losses from transmission property and pollution control investment for a 5-year period.
• Domestic Fossil Fuel Security. Extended a business tax credit for producing fuel from a nonconventional source to include coke or coke gas; Allowed temporary 50 percent expensing for equipment used in refining of liquid fuels; Assigned a 15-year cost recover period for the depreciation of natural gas distribution lines; Allowed the amortization of geological and geophysical expenditures for the exploration for oil and gas within the U.S. over 24 months.
• Conservation and Energy Efficiency. Allowed a tax deduction for energy efficient commercial building property placed in service before 2008; Allowed individual tax credit for certain residential energy efficiency improvements before 2008 and tax credit for 30 percent of expenditures made for certain residential energy efficient property; Allowed business tax credit for production of certain household appliances with specified energy efficiency rating; Allowed investment tax credit for installation of qualified fuel cell property or microturbine property through 2007.
• Alternative Motor Vehicles and Fuels Incentives. Allowed a tax credit for investment in alterative motor vehicles technology through 2014 for qualified fuel cell motor vehicles and 2010 for advanced lean burn, hybrid, and alternative fuel motor vehicles.
• Additional Energy Tax Incentives. Provided tax credit for increasing energy research through 2005.

American Jobs Creation Act of 2004 (AJCA)

• Provisions related to repeal of exclusion for extraterritorial income (ETI). Provided transitional relief for taxpayers subject to the ETI repeal by allowing a tax exclusion of 80 percent in 2005 and 60 percent in 2006 of extraterritorial income; created deduction relating to income attributable to U.S. production activities.
• Business tax incentives. Increased section 179 expensing from $25,000 to $100,000 and increased the phase-out threshold amount from $200,000 to $400,000; included software in section 179 property; and extended indexing of deduction limit and phaseout threshold through 2007; instituted 15-year straight-line cost recovery for qualified (1) leasehold improvements and (2) restaurant improvements, through 2005 only; provided S-corporation reform and simplification; repealed 4.3-cent General Fund excise taxes on various fuels usually through 2005 or 2006; and modified application of the income forecast method of accounting; provided incentives to film and television production and repealed some taxes on distilled spirits, wine, and beer, among other incentives.
• Provisions relating to tax relief for agriculture and small manufacturers. Provided that the General Fund be used to pay all alcohol and fuel and excise taxes; provided outlay payments (in lieu of excise tax credits and refunds) to producers of alcohol fuel mixtures; and provided tax credits for biodiesel (again, from the General Fund); extended some bonus depreciation rules for certain aircraft, among other items.
• Tax reform and simplification for U.S. businesses. Provided incentives to reinvest foreign earnings in the U.S.; installed new interest expense allocation rules; re-characterized overall domestic loss; applied look-through rules for dividends for certain section 902 corporations; based differences and reduction to 2 foreign tax credit baskets; implemented 10-year foreign tax credit carryforward and 1 year carryback; and repealed the 90 percent limitation on the use of foreign tax credits against the AMT among other items.
• Allowed deduction by businesses of state and local general sales taxes through 2005.
• Miscellaneous provisions. Extended and expanded credit for electricity produced from certain renewable resources, among many other items.
• Revenue provisions. Extended certain custom user fees; reformed the tax treatment of leasing transactions; modified the dispositions of transmission property to implement FERC restructuring policy; installed provisions to reduce tax avoidance and curtail tax shelters; modified charitable contribution rules for donations of patents and other intellectual property; modified the valuation of the charitable deduction for vehicles; and provided consistent amortization periods for intangibles, among many other items.

Working Families Tax Relief Act of 2004 (WFTRA)

• Extended expiring provisions of EGTRRA (2001) and JGTRRA (2003). Extended several provisions, including the $1,000 child tax credit through 2009, the doubling of the standard deduction for joint filers through 2008, the new 10 percent bracket through 2010, and the increased AMT exemption from the AMT through 2005. In addition, accelerated the increase in the refundability of the child tax credit to 15 percent in 2004 instead of 2005.
• Extended other expiring tax provisions through 2005 only. Extended the tax credit for increasing research activities, the work opportunity tax credit, the welfare-to-work tax credit, the treatment of personal nonrefundable credits against the AMT, the deduction for teacher classroom expenses, tax incentives for investment in the District of Columbia, Indian employment tax credit, accelerated depreciation of business property on Indian reservations, certain New York Liberty Zone bond provisions, expensing of Brownfields, deduction for clean-fuel vehicles, among others.
• Included combat pay in earnings for tax credit purposes. Included combat pay in earnings for calculating the earned income tax credit and the child tax credit, at taxpayer’s election.
• Applied the uniform definition of a qualifying child to most child-related tax provisions.

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003

• Introduced Health Savings Accounts. Allowed taxpayers under age 65 to make tax-free deposits up to the deductible on a high deductible plan if they also purchase a catastrophic health policy.
• Provided tax exclusions for certain employer subsidies.
• Increased taxes indirectly by reducing employer incentives to retain prescription drug insurance coverage.
• Introduced a new income-related premium for future Medicare Part B participants based on IRS records sent to the Social Security Administration.

Military Family Tax Relief Act of 2003

• Gain from sale of a home. Extended the five-year period utilized in determining full exclusion of gain from the sale of a principal residence up to ten years for a member of the uniformed or foreign services.
• Death benefits. Doubled from $6,000 to $12,000 military death gratuity payments and provided that the full payment is tax-exempt.
• Education distributions. Exempted distributions made from education IRAs for non-educational purposes from the 10 percent tax penalty if made for an account holder in a military academy.
• Travel expenses. Created above-the-line deduction for overnight travel expenses of National Guard and reserve members traveling more than 100 miles from home.

The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA)

• Accelerated provisions of EGTRRA (2001). Expanded child tax credit to $1,000 per child for 2003-04, reverting to present law (2001-enacted phase ins and outs) in 2005; expanded 15 percent tax bracket and standard deduction for joint filers to double the ranges and levels for single filers for 2003-04, reverting to present law in 2005; expanded 10 percent bracket for 2003-04, reverting to present law in 2005; implemented 2006 rate schedule: 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent; increases individual AMT exemption amount by $4,500 single and $9,000 joint for 2003-04.
• Capital gains and dividends. Taxed capital gains with a 15 percent rate for most gains and 5 percent for gains of moderate income taxpayers for 2003-07; becomes 15 percent/0 percent in 2008 and reverts to present law in 2009. Taxed dividends with a 15 percent/5 percent rate structure for 2003-07, 15 percent/0 percent in 2008, reverting to present law in 2009.
• Depreciation. Increased bonus depreciation or expensing to 50 percent for physical asset purchases for 2003-04, reverting to present law in 2005; increased section 179 (100 percent) expensing by raising expensible amounts from $25,000 to $100,000 and the phase-out threshold amount from $200,000 to $400,000.
• Aid to states. Provided states $20 billion in fiscal relief over 2003-04.

The Job Creation and Worker Assistance Act of 2002 (JCWA)

• Depreciation allowances. Allowed additional first year depreciation or expensing equal to 30 percent of the adjusted basis of qualified property.
• Five-year carryback provisions. Allowed five-year carryback of net operating losses (NOLs). Temporarily extended the NOL carryback period from two to five years for NOLs arising in taxable years ending 2001 and 2002.
• Unemployment assistance. Provided up to 13 weeks of temporary extended unemployment benefits for eligible displaced workers.
• Expansion of Work Opportunity Tax Credit. Expanded targeted categories to include certain employees in New York City; created a new targeted group for the credit.
• New York. Authorized issuance of $8 billion in tax-exempt private activity bonds for rebuilding the portion of New York City damaged in the September 11, 2001 attack. For New York Liberty Zone, increased the maximum dollar amount that may be deducted.
• Extensions of certain expiring provisions. Extended the following: AMT relief for individuals; credit for purchase of electric vehicles; Section 45 credit for production of electricity from wind, closed loop biomass, and poultry litter; Work Opportunity Tax Credit for two years; Welfare-To-Work Tax Credit for two years; deduction of qualified clean-fuel vehicle property and qualified clean-fuel vehicle refueling property; taxable income limit on percentage depletion for marginal production; authority to issue qualified zone academy bonds; increased carryover payments to Puerto Rico and the Virgin Islands; tax failure to comply with mental health parity requirements; suspension of reduction of deductions for mutual life insurance companies; Archer medical savings accounts (MSAs); tax incentives for investments on Indian reservations; extended and modified exceptions under Subpart F for active financing income; repealed dyed-fuel requirements.

Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)

• Individual income tax rate reductions. When fully-phased in 2006, levied a new 10 percent rate on the first $12,000 of income for a married couple ($10,000 for a single head of household and $6,000 for an individual); the 15 percent rate begins thereafter; reduced 28 percent rate to 25 percent, the 31 percent rate to 28 percent, the 36 percent rate to 33 percent and the 39.6 percent rate to 35 percent. Repealed the phaseout of the itemized deduction and personal exemption by 2008. Made the 10 percent bracket retroactive, resulting in refund checks of up to $300 for individuals and $600 for couples 4-5 months hence.
• Child tax credit increase. Doubled the $500 per child tax credit to $1,000 and made it refundable for persons earning above $10,000 to the extent of 10 percent for every dollar of earned income above $10,000 up to the maximum per child. The refundability rate rises to 15 percent in 2005 and the $10,000 threshold is indexed for inflation.
• Marriage penalty abatement. Lowered marriage penalties for couples by making the standard deduction and 15 percent bracket twice the size as for a single taxpayer.
• Child and dependent care tax credit increases. Provided a credit of 25 percent on expenditures for employer-provided childcare and increases the dependent care and adoption credits.
• Estate and gift tax reduction and elimination. Gradually reduced the estate and gift tax rate from 55 percent to 45 percent by 2007; raised the effective exemption from $1 million in 2002 to $3.5 million in 2009. Eliminated the estate tax portion entirely in 2010 in lieu of a capital gains tax with high disregard ($3.3 million) for transfers to a surviving spouse.
• PEP and PEASE. Phased-in both the repeal of the personal exemption phase out (PEP) and the repeal of the Pease cut back in itemized deductions, over five years.
• Retirement savings contribution ceiling increases. Increased IRA annual contribution limits from $2,000 to $5,000 and 401(k) limits from $10,000 to $15,000; allowed individuals 50 and older to make larger, catch-up contributions; permitted Roth 401(k)s beginning in 2006; and established a temporary credit for retirement savings for households earning $50,000 or less.
• Education credit and deduction expansions. Among others, allowed $4,000 maximum deduction of college tuition expenses; allowed tax-free distributions from pre-paid college tuition plans, allowed private institutions to offer these, and allowed taxpayers to simultaneously claim HOPE or Lifetime Learning credits in some instances; eliminated the 60 month limit on student loan interest deduction.

Community Renewal Tax Relief Act enacted by the Consolidated Appropriations Act of 2001

• Renewal Communities. Designated 40 renewal communities, 12 in rural areas, to receive the following tax benefits available from January 1, 2002 to December 31, 2009: a zero-percent rate for capital gain from sale of qualifying assets, a 15-percent wage credit to employers for the first $10,000 of qualified wages, a commercial revitalization deduction, an additional $35,000 of section 179 expensing for qualified property, an expansion of the work opportunity tax credit for individuals who live in a renewal community.
• Empowerment Zones. Designated nine new empowerment zones and extended present-law empowerment zones through 2009.
• New markets tax credit. Provided new markets tax credit maximum qualifying equity investment of $1 billion in 2001, $1.5 billion in 2002 and 2003, $2 billion in 2004 and 2005, and $3.5 billion in 2006 and 2007.
• Low income housing tax credit. Increased the per-capita low-income tax credit cap from $1.25 per capita to $1.50 per capital in 2001 and $1.75 in 2002. Adjusted for inflation beginning in 2003.
• Expensing Environmental Remediation Costs. Extended the expiration date for expenditures for environmental remediation to be eligible for a current deduction.
• District of Columbia. Extended the $5,000 credit for first-time homebuyers of a principal residence in the District of Columbia. Extended the D.C. Enterprise Zone designation through 2003.
• Medical Savings Accounts. Extended the MSA program through 2002 and renamed MSAs as Archer MSAs.

1990-1999

Internal Revenue Service Restructuring Act of 1998

• Mission statement revision. Directed IRS to revise its mission statement to provide greater emphasis on serving the public; replaced three-tier geographic organization with a structure that features operating units geared around different types of taxpayers and their specialized needs; created an independent appeals function within the IRS.
• IRS Oversight Board. Created board to oversee the administration, management, and conduct of the IRS, ensuring that the organization and operations of the IRS allow it to properly carry out its mission.
• Appointment and duties of IRS Commissioner and other appointed personnel. Gave Oversight Board authority to recommend candidates, who should have a strong management background, to the President, for appointment to a statutory five-year term (instead of a non-specific term), with the advice and consent of the Senate. President can still select and remove candidates.
• Taxpayer advocate role revision. Taxpayer Advocate now to be appointed by Secretary of the Treasury; limited the Advocate’s former and future involvement with the IRS, and provided clearer definitions and limits on the scope of taxpayer assistance orders that the Advocate can issue.

Surface Transportation Revenue Act of 1998

• Motor fuels tax extension. Extended current taxes on varieties of motor fuels through 2003: 18.3 cents per gallon in gasoline, 24.3 cents per gallon on diesel and kerosene, 13.6 cents per gallon of propane, and 11.9 cents per gallon of liquefied natural gas, among others.

Taxpayer Relief Act of 1997

• Child tax credit. Introduced a child credit of $500 per child per year.
• Education tax credit. Introduced the HOPE and Lifetime Learning non-refundable education credits. The Hope credit is the maximum of taxable income or $1,500, per student for at most the first two years of school. The Lifetime Learning credit is the maximum of 20 percent of taxable income or $1,000, per taxpayer return (rather than per student), with no limit on the number of years claimed.
• Estate and gift tax reductions. Boosted the present law unified credit beginning in 1998 from $600,000 per person to $1 million by 2006. Also indexed other estate and gift tax parameters, such as the $10,000 annual gift exclusion, to inflation after 1998.
• Capital gains rates reduction. Reduced capital gains tax rates from 28 percent and 15 percent to 20 percent and 10 percent respectively.
• IRA modification. Extended AGI phaseouts for deductible IRAs, allowed tax-free withdrawals for first-time home purchases, created new Roth IRAs and education IRAs.
• Alternative minimum tax reductions. Repealed the AMT for small businesses (those averaging less than $7.5 million in gross receipts in the prior three years), modified the depreciation adjustment used in the AMT calculation, and repealed the AMT installment method adjustment for farmers.
• Excise taxes. Phased-in 30 cents per pack increase in the cigarette tax. Extended air transportation excise taxes.

Revenue Provisions of the Health Insurance and Portability Act of 1996

• Medical savings accounts. Offered these IRA-like vehicles for the tax-advantaged accumulation of assets against possible medical expenses for employees covered under an employer-sponsored high deductible plan (e.g., at least a $1,500 deductible) of a small employer and self-employed individuals, regardless of the size of the entity for which they perform work. Individual contributions to an MSA are deductible (within limits) in determining AGI (i.e., above the line); additionally, employer contributions are excludible from gross income.
• Health expense deduction increased for self-employed.
• Treatment of long-term care services and accelerated death benefits.
• Income tax exemption for state-sponsored health organizations covering high risk individuals.
• IRA withdrawals for health care expenses. Made such withdrawals penalty free.
• Group health plan requirements. Applied and enforced plan provisions to ensure genuine portability.

Revenue Provisions of the Small Business Job Protection Act of 1996

• Small business expensing increase. Increased the $17,500 of qualified depreciable property allowable for expensing or immediate write-off to $25,000.
• Social Security tax credit. Credit applicable to Social Security taxes paid with respect to employee cash tips.
• Pension simplification provisions. Included here are provisions allowing contributions to a spousal IRA for a non-working spouse (thus doubling potential maximum contributions from $2,000 to $4,000 for eligible participants), simplifying distributions from small business pension plans, tightening of nondiscrimination provisions, eliminating special aggregation rules applying to self-employed individual plans, and reform of miscellaneous pension rules governing state and local, special job-status or professional individuals.

Taxpayer Bill of Rights 2 of 1996

• Taxpayer Advocate. Established position of Taxpayer Advocate within the IRS, replacing Taxpayer Ombudsman. The Advocate is appointed by the Commissioner. The Advocate has four responsibilities: (1) assist taxpayers in resolving problems with the IRS, (2) identify problem areas where taxpayers have difficulty dealing with the IRS, (3) propose administrative changes within IRS that might mitigate these problem areas, and (4) identify potential legislative changes that might mitigate these problem areas.
• Installment agreement modification. Where the IRS enters into a paid installment agreement with taxpayers to facilitate the collection of taxes, it must notify said taxpayers within 30 days if such agreement is modified or terminated for any reason other than the collection of the tax is determined to be in jeopardy. Additionally, the IRS must establish procedures for independent administrative review of installment agreements that are modified or terminated.
• Interest and penalties abatement. IRS is directed to abate interest penalties against the taxpayer caused by any unreasonable error or delay on the part of IRS management.
• Other provisions. Re-examination of joint and several liability for spouses filing joint returns; flexibility in moderating collection activities according to level of compliance, and a number of other provisions that boost taxpayers’ standing relative to the IRS in legal disputes.

Omnibus Budget Reconciliation Act of 1993

• Individual income tax rate increases. Imposed new higher tax rates of 36 percent and 39.6 percent. Increased tax rates and exemption amounts under the AMT. Permanently extended the itemized deduction limitation and the personal exemption phase-out legislated in OBRA 1990.
• Corporate tax rate increases. Increased corporate tax rate to 35 percent on income above $10 million.
• Hospital Insurance wage base cap repeal. Repealed the cap on the HI tax base - set at $135,000 in 1993- so that the HI tax applies to all income.
• Social Security benefit taxation expansion. Expanded the taxable portion of Social Security benefits from 50 percent to 85 percent, when modified AGI goes above $44,000 for joint returns and $34,000 for single returns.
• Motor fuels tax increase. Increased fuel taxes by 4.3 cents per gallon (plus extended the current motor fuels tax of 2.5 cents per gallon).
• Reduced business meals and entertainment deduction.
• EITC expansion. Extended EITC to single workers with no children earning $9,000 or less.

Tax Extension Act of 1991

• Tax provision extensions. Provided a six-month extension for a number of tax provisions and credits facing expiration. Categories included research tax credits; exclusions for employer-provided educational assistance; targeted jobs credits; alternative energy credits; itemized deduction for health insurance costs; drug clinical testing credits; issuance authority for mortgage revenue bonds, certificates, and manufacturing/farm facility construction; credit for charitable contributions of appreciated tangible property.

Omnibus Budget Reconciliation Act of 1990

• Excise tax increases. Imposed a 30 percent excise tax on the amount of price over $30,000 for autos, $100,000 for boats, $250,000 for airplanes, and $10,000 for furs. Increased motor fuels taxes by 5 cents per gallon. Increased taxes on tobacco and alcoholic beverages: by 8 cents per pack of cigarettes, by $1.00 per proof gallon of liquor; by 16 cents per six-pack of beer; and by 18 cents per bottle of table wine. Extended Airport and Airway trust fund taxes and increased them by 25 percent. Permanently extended 3 percent excise tax on telephone service.
• Individual income tax rate increases. Increased top statutory tax rate from 28 percent to 31 percent, and increased the individual alternative minimum tax rate from 21 percent to 24 percent. Capped the capital gains rate at 28 percent. Limited value of high income itemized deductions: reduced by 3 percent times the extent to which AGI exceeds $100,000. Modified the bubble: temporarily created the personal exemption phase out applicable to the range of taxable income between $150,000 and $275,000.
• Payroll tax rate increases. Raised the cap on taxable wages for Hospital Insurance (Medicare) from $53,400 to $125,000. Extended social security taxes to state and local employees without other pension coverage. Imposed a supplemental 0.2 percent unemployment insurance surtax.
• Earned income tax credit (EITC) expansion and other low-income credits. Adjusted EITC benefit levels and phase-in and phase-out rates for family size. Created a low-income credit for the premium costs of health insurance that includes coverage for children.
• Income tax base erosion. Extended expiring provisions: tax credits for research and exploration, low-income housing, business energy, targeted jobs, and orphan drugs; tax exemptions for mortgage revenues and issue bonds; exclusions for employer-provided legal and educational assistance; and 25 percent health insurance deduction for the self-employed. Extended and created new energy producer tax benefits: extended non-conventional fuels credit and tax incentives for ethanol production; created a new credit for enhanced oil recovery costs; amended percentage depletion; reduced alternative minimum tax preference treatment of energy items. Created a small-business oriented credit for accommodations for disabled persons. Modified estate freeze rules. Eliminated appreciation of certain donated property as a minimum tax preference item.
• Miscellaneous revenue-raisers. Permitted transfers from over-funded pension plans for retiree health; added chemicals subject to ozone-depleting chemicals tax; re-imposed Leaking Underground Storage Tank Trust Fund tax; reduced loss deductions by property and casualty insurance companies; improved IRS ability to obtain information from foreign corporations; increased harbor maintenance tax; reduced business income tax loopholes.

1980-1989

Omnibus Budget Reconciliation Act of 1989

• Limited tax deductions and exclusions for employee stock ownership plans.
• Increased fees and excise taxes on air travel, ozone-depleting chemicals, and oil spill liability.
• Repealed completed contract method of accounting.
• Modified the corporate alternative minimum tax.
• Extended expiring provisions: employer provided educational assistance; research and experimentation tax credit and allocation rules; low income housing credit.

Medicare Catastrophic Coverage Repeal Act of 1989

• Eliminated supplemental premium tax for Medicare catastrophic coverage.

Financial Institutions Reform, Recovery, and Enforcement Act of 1989

• Repealed three provisions that had provided tax relief to financially troubled thrift institutions.

Technical and Miscellaneous Revenue Act of 1988

• Passed technical corrections for the Tax Reform Act of 1986.
• Extended expiring provisions: research and experimentation tax credit and allocation rules; targeted jobs credit; mortgage subsidy bonds; employer-provided educational assistance and group legal services: FSLIC relief provisions, and mutual fund expense exclusion.
• Restricted single premium life insurance, Alaskan Native Corporations, and completed contract accounting rules; and accelerated corporate estimated tax payments.

Medicare Catastrophic Coverage Act of 1988

• Passed new supplemental premium tax on all persons eligible for Medicare. Premium rate was 15 percent of individual income tax liability in excess of $150, increased to 28 percent in 1993. Premium limited to $800 in 1989, raised to $1,050 in 1993, with future premium cap dependent on medical care costs after 1993.

The Family Security Act of 1988

• Extended the debt refund offset provision.
• Tightened eligibility for the dependent care credit.
• Required taxpayer identification number for younger children.

Continuing Resolution for Fiscal Year 1988

• Increased IRS funding for more enforcement staff and equipment.

Airport and Airway Trust Fund Extension of 1987

• Extended airport and airway trust excise tax.

Omnibus Budget Reconciliation Act of 1987

• Repealed installment sales method of accounting for dealers and vacation pay reserve.
• Tightened completed contract method of accounting.
• Reduced inter-corporate dividends received deduction.
• Accelerated corporate estimated tax payments.
• Limited employer deductible contributions to defined benefit pension plans.
• Limited mortgage interest deduction to debt less than $1 million and home equity loans of less than $100,000.
• Extended telephone excise tax, FUTA tax, 55 percent estate tax rate, and employer Social Security to cover cash tips.
• Increased IRS and BATF fees.

Continuing Resolution for Fiscal Year 1987

• Increased Internal Revenue Service funding for staffing and equipment.
• Established Immigration and Naturalization Service inspection fee.

Superfund Amendments and Reauthorization Act of 1986

• Enacted excise tax of 8.2 cents per barrel on domestic crude oil and 11.7 cents per barrel on imported petroleum products.
• Enacted new broad-based tax on all corporations equal to 0.12 percent of alternative minimum taxable income in excess of $2 million.
• Enacted a 0.1 cent per gallon excise tax on gasoline, diesel fuels and other special motor fuels to finance cleanup of wastes from leaking underground petroleum storage tanks.

Omnibus Budget Reconciliation Act of 1986

• Accelerated state and local government deposits of Social Security payroll taxes.
• Accelerated collections of alcohol and tobacco excise taxes.
• Increased substantial underpayment penalty and penalty for failure to comply with deposit requirements.
• Increased customs user fee on value of imported merchandise.

Tax Reform Act of 1986

• Individual income tax provisions. Lowered top marginal tax rate to 28 percent; increased standard deduction to $5,000 for married couples; increased personal exemption to $2,000; and increased earned income tax credit.
• Repealed two-earner deduction, long-term capital gains exclusion, state and local sales tax deduction, income averaging, and exclusion of unemployment benefits. Limited IRA eligibility, consumer interest deduction, deductibility of passive losses, medical expenses deductions, deduction for business meals and entertainment, pension contributions, and miscellaneous expense deduction.
• Reduced top corporate marginal tax rate to 34 percent, and tightened corporate minimum tax.
• Repealed the investment tax credit and lengthened capital cost recovery periods.
• Further tightened state volume limitations for private purpose tax-exempt bonds.
• Extended research and experimentation credit: initiated new low-income housing tax credit and phased in deductibility of health insurance costs of self-employed individuals.

Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

• Permanently extended 16 cents per pack cigarette excise tax.
• Enacted new excise tax on smokeless tobacco.
• Increased excise tax on coal production.
• Extended hospital insurance coverage to new state and local government employees.
• Repealed income averaging for former students.

Deficit Reduction Act of 1984

• Increased excise taxes. Increased distilled spirits excise tax and extended telephone excise tax.
• Restrictions on leasing. Reduced benefits from tax-exempt leasing and postponed effective data of liberalized finance leasing rules.
• Increased depreciable life of structures from 15 to 18 years.
• Placed state volume limitation on private purpose tax exempt bonds.
• Placed time value of money restrictions on accounting rules.
• Repealed net interest exclusion (ERTA provision) before its effective date.
• Reduced long-term capital gains holding period from one year to six months.

Social Security Amendments of 1983

• Accelerated scheduled increases in OASDI payroll tax rate.
• Taxed some Social Security benefits. At most 50 percent of Social Security benefits subject to tax if income exceeds $25,000 for a single taxpayer or $32,000 for a joint return.

Interest and Dividends Tax Compliance Act of 1983

• Repealed interest and dividend withholding and replaced with backup withholding and expanded information reporting.
• Enacted Caribbean Basin Initiative (CBI) tax benefits.

Railroad Retirement Revenue Act of 1983

• Increased railroad retirement payroll taxes and railroad unemployment insurance taxes.
• Taxed railroad retirement pension plan benefits.

Tax Equity and Fiscal Responsibility Act of 1982

• Improvements in compliance and collection. Imposed withholding on interest and dividends; further accelerated corporate estimated tax payments; expanded information reporting; and increased penalties on non-compliance.
• Reduction in unintended benefits and obsolete incentives. Strengthened individual minimum tax; repealed future acceleration of depreciation allowances; repealed safe-harbor leasing; and tightened completed contract method of accounting rules.
• Increased excise taxes. Increased airport and airway trust fund taxes, cigarette excise taxes, and telephone excise tax.
• Increased employment taxes. Increased FUTA tax rate and wage base, and extended hospital insurance taxes to Federal employees.

Highway Revenue Act of 1982

• Increased excise tax on gasoline and diesel fuel from 4 to 9 cents per gallon for 5 years.

Economic Recovery Tax Act of 1981

• Individual income tax reductions. Reduced marginal tax rates 23 percent over three years; reduced maximum rate to 50 percent and maximum capital gains rate to 20 percent; indexed income tax brackets, personal exemption and standard deduction for inflation beginning in 1985; and provided new deduction for two-earner married couples.
• Capital cost recovery provisions. Replaced facts and circumstances and the Asset Depreciation Range guidelines with Accelerated Cost Recovery System. Faster write-off of capital expenditures under simplified rules. Most equipment written off over 5 years, structures over 15 years. Allowed liberalized safe-harbor leasing rules, which effectively allowed companies to sell tax losses.
• Savings incentives. Extended eligibility for IRA's to include active participants in employer pension plans. Increased Keogh annual contribution limit to $15,000.
• Estate and gift tax provisions. Permitted unlimited marital deduction: increased estate credit to exempt from tax all estates of $600,000 or less; and reduced maximum estate tax rate from 70 to 50 percent.
• Accelerated corporated estimated tax payments and tightened rules on tax straddles with mark-to-market rule.

Crude Oil Windfall Profit Tax Act of 1980

• Excise Taxes. Created temporary excise tax on crude oil profits (phased-out by end of 1993).
• Energy Tax Credits. Created several business energy tax credits.
• Dividend Exclusion. Temporarily increased $200 dividend exclusion (for joint filers) to $400 and expanded to include interest.

1970-1979

Revenue Act of 1978

• Individual Income Tax. Reduced individual taxes (widened tax brackets and reduced number of tax rates).
• Personal Exemption. Increased personal exemption amount from $750 to $1,000.
• Corporate Tax. Reduced corporate tax rates (top rate dropped from 48% to 46%).
• Standard Deduction. Increased standard deduction from $3,200 to $3,400 for joint filers.
• Capital Gains. Increased capital gains exclusion from 50% to 60%.
• State and Local Taxes. Repealed nonbusiness deduction for state and local gasoline taxes.

Tax Reduction and Simplification Act of 1977

• Standard Deduction. Replaced percentage standard deduction and minimum standard deduction with single standard deduction of $3,200 (for joint filers).
• General Tax Credit. Temporarily extended general tax credit through 1978 (maximum of $35 per capita or 2% of $9,000 of income).

Tax Reform Act of 1976

• Standard Deduction. Increased percentage standard deduction to 16% (maximum $2,800) and minimum standard deduction to $2,100 (for joints filers).
• General Tax Credit. Temporarily extended general tax credit through 1977 (maximum of $35 per capita or 2% of $9,000 of income).
• Investment Tax Credit. Delayed decrease in investment tax credit from 10% to 7% through 1980.
• Individual Mimimum Tax. Expanded individual minimum tax.
• Estate and Gift Tax. Created unified rate schedule for estate and gift taxes with $175,000 exemption.
• Small Business Tax Rates. Temporarily lowered small business tax rates through 1977.
• Capital Gains. Increased long-term capital gains holding period from 6 months to 1 year.

Tax Reduction Act of 1975

• Tax Liability. Provided 10% rebate on 1974 tax liability ($200 cap).
• General Tax Credit. Created temporary $30 general tax credit for each taxpayer and dependent.
• Investment Tax Credit. Temporarily increased investment tax credit to 10% through 1976.
• Minimum Standard Deduction. Temporarily increased minimum standard deduction to $1,900 (for joint filers) for 1975 only.
• Percentage Standard Deduction. Temporarily increased percentage standard deduction to 16% for 1975 only.

Revenue Act of 1971

• Investment Tax Credit. Reinstated investment tax credit (no basis adjustment).
• Excise Tax. Repealed 7% auto excise tax, which was due to phase-out in 1982.
• Depreciation Convention. Replaced 3/4-year depreciation convention with 2-year convention.
• Minimum Standard Deduction. Increased minimum standard deduction from $1,000 to $1,300.
• Personal Exemption. Accelerated scheduled increases in personal exemption amount and percentage standard deduction.

1960-1969

Tax Reform Act of 1969

• Personal Exemption. Phased-in increase in personal exemption amount from $600 to $750.
• Investment Tax Credit. Repealed investment tax credit.
• Minimum Standard Deduction. Increased minimum standard deduction from $300 plus $100 per capita (total maximum $1,000) to $1,000.
• Standard Deduction. Phased-in increase in percentage standard deduction from 10% to 15%.
• Income Tax Surcharge. Temporarily extended income tax surcharge at 5% annual rate through 6/30/70.
• Minimum Taxes. Established individual and corporate minimum taxes.
• Tax Rate Schedule. Established new tax rate schedule for single taxpayers.
• Excise Taxes. Delayed scheduled reduction in telephone and auto excise taxes.
• Maximum Tax Rate. Lowered maximum tax rate on earned income from 70% to 50%.

Revenue and Expenditure Control Act of 1968

• Individual Tax Surcharge. Created temporary 10% income tax surcharge on individuals through 6/30/69.
• Corporate Tax Surcharge. Created temporary 10% income tax surcharge on corporations through 6/30/69.
• Excise Taxes. Delayed scheduled reduction in telephone and auto excise taxes.

Tax Adjustment Act of 1966

• Corporate Estimated Tax Payments. Accelerated scheduled acceleration of corporate estimated tax payments.

Revenue Act of 1964

• Individual Tax Rates. Reduced individual tax rates (top rate dropped from 91% to 70%).
• Corporate Tax Rates. Reduced top corporate tax rate from 52% to 48%.
• Corporate Estimated Tax Payments. Phased-in acceleration of corporate estimated tax payments through 1970.
• Minimum Standard Deduction. Created minimum standard deduction of $300 + $100/exemption (total $1,000 maximum).

Revenue Act of 1962

• Investment Tax Credit. Established 7% investment tax credit.
• Information Reporting. Required information reporting to government for interest and dividend payments.

1950-1959

Internal Revenue Code of 1954

• Corporate Tax Rates. Temporarily extended 5 percentage point increase in corporate tax rates through 3/31/55.
• Depreciation Deductions. Increased depreciation deductions by providing additional depreciation schedules.
• Dividend Tax Credit. Created 4% dividend tax credit for individuals.

Excise Tax Reduction Act of 1954

• Excise Tax Increases. Temporarily extended 1951 excise tax increases through 3/31/55.
• Excise Tax Rates. Reduced excise tax rates on telephones, admissions, jewelry, etc.

Revenue Act of 1951

• Individual Income Tax. Temporarily increased individual income tax rates through 1953.
• Corporate Tax. Temporarily increased corporate tax rates 5 percentage points through 3/31/54.
• Excise Taxes. Temporarily increased excise taxes on alcohol, tobacco, gasoline, and autos through 3/31/54.

Revenue Act of 1950

• Individual Income Tax. Eliminated portion of the individual income tax rate reductions from 1945 and 1948 acts.
• Corporate Tax. Eliminated 53% corporate tax rate "bubble"; increased top corporate rate from 38% to 45%.

Excess Profits Tax of 1950

• Corporate Tax Rate. Increased top corporate tax rate from 45% to 47%.
• Excess Profits Tax. Created temporary excess profits tax of 30% through 6/30/53.

1940-1949

Revenue Act of 1948

• Individual Income Tax Rates. Reduced individual income tax rates 5-13%.
• Personal Exemption. Increased personal exemption amount from $500 to $600.
• Joint Filers. Permitted married couples to split their incomes for tax purposes.
• Additional Exemption. Provided additional exemption for taxpayers age 65 and over.

Revenue Act of 1945

• Excess Profits Tax. Repealed excess profits tax.
• Individual Income Tax Rates. Reduced individual income tax rates 3 percentage points and 5% (top rate fell from 94% to 86.45%).
• Corporate Tax Rates. Reduced corporate tax rates (top rate dropped from 40% to 38%).

Individual Income Tax Act of 1944

• Individual Income Tax. Raised individual income taxes.
• Victory Tax. Repealed 3% Victory tax.
• Personal Exemptions. Standardized value of personal exemptions at $500 per person.

Current Tax Payment Act of 1943

• Withholdings. Imposed withholding of income tax by employers on wages paid.
• Income Tax Liability. Canceled 75-100% of lower of 1942 or 1943 individual income tax liability.

Revenue Act of 1943

• Excise Taxes. Increased excise taxes on alcohol, jewelry, telephones, admissions, etc.
• Excess Profits Tax. Increased excess profits tax rate from 90% to 95%.
• Victory Tax. Lowered Victory tax rate from 5% to 3% and repealed postwar credit.

Revenue Act of 1942

• Individual Income Tax. Increased individual income tax rates.
• Corporate Tax. Increased corporate tax rates (top rate increased from 31% to 40%).
• Excess Profits Tax. Replaced 35-60% graduated rate schedule for excess profits tax with flat 90% rate.
• Victory Tax. Created 5% Victory tax on all individual income over $624, with postwar credit.
• Personal Exemption. Reduced personal exemption amount from $1,500 to $1,200 (married couples).
• Exemption for Dependents. Reduced exemption amount for each dependent from $400 to $350.

Revenue Act of 1941

• Excess Profits Tax. Increased excess profits tax by 10 percentage points (top rate increased from 50% to 60%).
• Tax Increases. Permanently extended 1940 temporary individual, corporate, and excise tax increases.
• Corporate Tax. Increased corporate tax rates 6-7 percentage points (top rate increased from 24% to 31%).
• Excise Taxes. Increased excise taxes on alcohol, tires, etc.
• Personal Exemption. Reduced personal exemption amount from $2,000 to $1,500 (married couples).

Revenue Act of 1940

• Individual Income Tax. Temporarily and permanently increased individual income tax rates.
• Corporate Tax. Temporarily and permanently increased corporate income tax rates (top rate from 19% to 22.1%).
• Excise Taxes. Temporarily increased most excise tax rates to 30-50%.
• Personal Exemption. Reduced personal exemption amount from $2,500 to $2,000 (married couples).

Second Revenue Act of 1940

• Excess Profits Tak. Created corporate excess profits tax (top rate of 50%).
• Corporate Tax. Increased corporate income tax rates (top rate increased from 22.1% to 24%).