|
Individual |
|
|
|
Provision |
In Effect |
Impact |
|
Making Work Pay Credit |
2009-2010 |
Provides individuals with a refundable
credit equal to the lesser of 6.2% of the
taxpayer’s earned income or $400 ($800 in
the case of joint filers), phased out for
AGI above $75,000 ($150,000 in the case of
joint filers). |
|
First-Time Homebuyer Credit |
1/1/09-11/30/09 |
Extends the credit for purchases before
12/1/09, increases the maximum credit amount
to $8,000 ($4,000 for married taxpayers
filing separately), and waives the repayment
requirement for purchases in 2009. |
|
Child Tax Credit |
2009-2010 |
Provides that refundable portion of child
credit is calculated to apply to 15 percent
of earned income in excess of $3,000. |
|
Deduction for Tax on Purchase of Vehicle |
Date of enactment-12/31/09 |
Allows itemizers and non-itemizers to deduct
sales and excise taxes incurred on purchase
of new motor vehicle. |
|
Suspension of Tax on Unemployment
Compensation |
2009 |
Excludes up to $2,400 of unemployment
compensation from gross income. |
|
American Opportunity Tax Credit |
2009-2010 |
Increases Hope credit to 100 percent of
first $2,000 and 25 percent of next $2,000
for first 4 years of post-secondary
education; extends it to apply to course
materials; increases AGI limits; allows
credit against AMT; and makes a portion
refundable. |
|
Computer Technology Treated as Higher
Education Expense |
2009-2010 |
Enables taxpayers to use distributions from
Section 529 accounts to purchase computer
technology or equipment or Internet access
and services while beneficiary is enrolled
at educational institution. |
|
AMT Exemptions |
2009 |
Increases the exemption amounts for 2009 to
$70,950 for married individuals filing
jointly and surviving spouses, $46,700 for
other unmarried individuals, and $35,475 for
married individuals filing separately. |
|
Non-refundable Credits Offset AMT |
2009 |
Allows individuals to offset non-refundable
personal credits against the AMT through
2009. |
|
|
|
|
|
Business |
|
|
|
Provision |
In Effect |
Impact |
|
Bonus Depreciation |
2009 |
Extends 50 percent first-year bonus
depreciation deduction to property placed in
service during 2009 (2010 for certain
property having longer production periods
and aircraft). |
|
Section 179 Expensing |
2009 |
Increases the Code Section 179 deduction to
$250,000 for 2009. Phase-out starts at
$800,000. |
|
NOL Carryback |
2008 |
Allows eligible small businesses to elect up
to a five year carryback of a net operating
loss for a tax year ending or beginning in
2008. |
|
Estimated Tax Payments |
2009 |
Provides that the required annual estimated
tax payments of an individual with adjusted
gross income of less than $500,000, more
than 50 percent of which is income from a
small business, to satisfy estimated tax
requirement is not greater than 90 percent
of the tax liability shown on the return for
the preceding taxable year. |
|
Built-in Gains Tax |
2009-2010 |
BIG tax is not imposed in tax year beginning
in 2009 or 2010 if the seventh tax year in
recognition period preceded that tax year. |
|
Work Opportunity Credit |
2009-2010 |
Expands the work opportunity credit to cover
unemployed veterans and disconnected youth
hired in 2009 and 2010. |
|
|
|
|
|
Energy |
|
|
|
Provision |
In Effect |
Impact |
|
Plug-in Vehicles |
After 2009 (existing credit); date of
enactment-2011 (new credits) |
Modifies the existing credit; adds a new 10%
credit (up to $2,500) for plug-in electric
vehicles that are low-speed vehicles,
motorcycles, or three-wheeled vehicles; adds
a new 10% credit (up to $4,000) for the cost
of converting a motor vehicle into a
qualified plug-in vehicle. |
|
Credit for Nonbusiness |
2009-2010 |
Extends the credit through 2010, modifies
the calculation of the credit, and updates
the efficiency standards |
|
Energy Property |
|
(effective as of the date of enactment). |
|
Residential Energy Efficient Property |
2009-2016 |
Eliminates the credit caps for solar hot
water, geothermal, and wind property. |
|
Alternative Motor Vehicle credit |
Beginning after 12/31/08 |
Treats the credit as a personal credit
allowed against the AMT. |
