|
National
Key Vote
Tax Relief Extension Reconciliation Act of 2005
Project Vote Smart's Synopsis:
Vote to pass a bill that reduces federal spending by $56.1 billion over five years by decreasing the amount of funds spent on Medicaid, Medicare, agriculture, employee pensions, conservation, student loans, and other projects and retains a reduced tax rate on capital gains and dividends.
Official Title of Legislation:
HR 4297: To provide for reconciliation pursuant to section 201(b) of the concurrent resolution on the budget for fiscal year 2006.
Highlights:
-All tax provisions in highlights are extended by a period of one year, except where noted otherwise.
-Continues to allow taxpayers to claim personal tax credits for disabled or dependent care, the HOPE college expenses, certain home mortgages and Life Learning Credits against the Alternative Minimum Tax (AMT) in order to decrease the number of people that will be required to pay the AMT (Sec. 101).
-Lengthens wage tax credit for employment on Indian reservations continues to allow businesses that are located on reservations accelerated depreciation rates on their investments (Sec. 102).
-Extends the opportunity tax credit as well as the credit for individuals who have been receiving public assistance for an extended period of time (welfare-to-work credit) (Sec. 103).
-Increases the age limit for eligibility for food stamp recipients from 25 to 35 years (Sec. 103).
-Extends the availability of the Archer Medical Savings Account Program (MSA) (Sec. 106).
-Retains tax incentives for investment in the District of Columbia (Sec. 110).
-Increases and lengthens tax credits for certain research expenses (Sec. 113).
-Extends the qualified zone academy bonds program that provides funding for school renovations, equipment and teacher training in high-need areas (Sec. 114).
-Allows for deductions of state and local general sales taxes instead of state income taxes through 2007 instead of 2006 (Sec. 117)
-Extends through 2007 the expense allowances for environmental remediation costs (the cost of cleanup of sites where petroleum products have been released or disposed) (Sec. 201).
-Continues reduced tax rates of 15 percent and 5 percent on capital gains and dividends through 2010 (Sec. 203).
-Continues the "saver's credit" program which allows qualified individuals who invest in Individual Retirement Accounts (IRA) to receive a Federal "matching" tax credit through 2008 (Sec. 204).
-Increases the expensing limits on investments of depreciable assets for small businesses through 2010 (Sec. 205).
-Repeals the requirement that a veteran must have served before 1977, in order to receive the benefits of qualified veterans' mortgage bond programs and imposes specific dollar limitations on some states (Sec. 303).
-Allows an election to treat an artist's musical sales as capital gains "certain self-created musical works" when these works are sold by the artist (Sec. 304).
-Amends charges collected by ton on vessels entering the US by reducing the weight threshold from 10,000 pounds to 6,000 pounds (Sec. 305).
Link to Legislation: http://thomas.loc.gov/cgi-bin/query/z?c109:hr4297:
House Passage: 12/08/2005 : Bill Passed 234 - 197 (Roll no. 621) Senate Passage With Amendment: 02/02/2006 : Bill Passed: 66 - 31 (Record Vote Number 10)
NOTE: THIS IS A SUBSTITUTED BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. House Conference Report Vote: 05/10/2006 : Conference Report Adopted: 244 - 185 (Roll no. 135) Senate Conference Report Vote: 05/11/2006 : Conference Report Adopted: 54 - 44 (Record Vote Number 118) President Passage: 05/17/2006 : Signed Became Public Law Number 109-222
Sponsor: Rep. Thomas, William (R-CA) (out of office)
PVS provides summaries for each version of the bill selected as a key vote. The summary does not necessarily reflect the final version of the bill. For further status information, call the Voter's Research Hotline at 1-888-VOTE-SMART (1-888-868-3762).
| 
Print
Share