IRS
Tax Credit Bonds
Date:
March 18, 2010
Who:
IRS
Policy Area:
Other
Economic Target:
Other
Action Type:
Tax Break
Maximum Amount:
$2.29 billion
Deficit Impact:
-$0.16 billion The Hiring Incentives to Restore Employment Act included tax credits on qualifying bonds.
Also included in the Hire Act were provisions creating incentives for hiring unemployed workers.
Notes:
Maximum amount reflects the lost revenue from the tax provisions over a 10-year period. Deficit impact reflects the total net cost of the provision in proportion to the total net cost of -$1.1 billion for the bill. Offsets totaled $16.7 billion, stemming largely from foreign account tax compliance and a delay in implementing worldwide interest expense allocation until 2020.
Amount spent unknown.
Incentives for Hiring Unemployed Workers
Date:
March 18, 2010
Who:
IRS
Economic Target:
Other
Action Type:
Tax Break
Maximum Amount:
$12.96 billion
Deficit Impact:
-$0.88 billion The Hiring Incentives to Restore Employment Act included several tax provisions aimed at providing tax breaks for companies and organizations that hire previously unemployed workers. The bill excludes employers from paying the 6.2 percent in federal payroll taxes for the rest of 2010 on new employees they hire who have been previously unemployed for over two months. The bill also allows employers to receive a $1,000 tax credit for each of these new hired employees if they are still with the same employer after a year.
Notes:
Maximum amount reflects the lost revenue from the tax provisions over a 10-year period. Deficit impact reflects the total net cost of the provision in proportion to the total net cost of -$1.1 billion for the bill. Offsets totaled $16.7 billion, stemming largely from foreign account tax compliance and a delay in implementing worldwide interest expense allocation until 2020.
Amount spent unknown.
IRS Exempts Citigroup from Tax on Repurchase of TARP Assets
Date:
December 11, 2009
Who:
IRS
Who:
Treasury
Policy Area:
Financial Sector Policy
Economic Target:
Citigroup
Action Type:
Tax Break
Maximum Amount:
$38.00 billion The IRS agreed to give up billions in tax money in exchange for Citigroup’s repurchase of $20 billion of its assets held by TARP.
Notes:
According to a Washington Post article, the exact value of the IRS ruling will depend on Citi’s future profits and other factors. But accounting experts estimated that Citi will save at least several billion dollars. Some experts have also said that the lost tax revenue could easily outweigh the profits the Treasury will likely make in selling its ownership stake in Citi.
Increase in Low-Income Housing Tax Credit
Date:
July 23, 2008
Who:
IRS
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Housing
Action Type:
Tax Break
Maximum Amount:
$11.77 billion
Amount Spent:
$7.63 billion
Deficit Impact:
$7.63 billion This measure increased in 2008 and 2009 the per capita amount of the low-income housing tax credit allocable by each state. In addition, the new rule ignored the distinction between new buildings and existing buildings, allowed buidling receiving moderate rehabilitation assistance to dually qualify for the low-income housing credit, and extended the credit to some eligible students.
Notes:
Maximum amount reflects the peak cumulative cost of the provision over the 2008-2018 period. Amount spent and deficit impact reflect CBO's estimated ten-year budget impact of the provision (http://www.cbo.gov/ftpdocs/95xx/doc9597/hr3221.pdf).
Tax Credit for First-Time Homebuyers
Date:
July 23, 2008
Who:
IRS
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Housing
Action Type:
Tax Break
Maximum Amount:
$4.65 billion
Amount Spent:
$4.65 billion
Deficit Impact:
$4.65 billion This measure provides a $7,500 tax credit for some qualifying first-time homebuyers. The credit will be claimed on tax returns to reduce the home-purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Notes:
Maximum amount reflects the peak cumulative cost of the provision over the 2008-2018 period. Amount spent and deficit impact reflect CBO's estimated ten-year budget impact of the provision (http://www.cbo.gov/ftpdocs/95xx/doc9597/hr3221.pdf).
Net Carryback Loss Extension and Expansion
Date:
November 6, 2009
Who:
IRS
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Other Business
Action Type:
Tax Break
Maximum Amount:
$33.20 billion
Amount Spent:
$33.20 billion
Deficit Impact:
$0.06 billion This provision would reduce corporate taxes by extending net operating loss carryback rules under the stimulus act from two to five years.
Notes:
Maximum amount reflects the peak total loss in government revenue. Deficit impact based on CBO calculation of ten-year deficit impact (http://finance.senate.gov/sitepages/leg/LEG%202009/103009_CBO_Estimates.pdf).
First-Time Homebuyer Tax Credit Extension and Expansion
Date:
November 6, 2009
Who:
IRS
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Housing
Action Type:
Tax Break
Maximum Amount:
$12.72 billion
Amount Spent:
$12.72 billion
Deficit Impact:
$0.06 billion This provision would further extend and expand the First Time Home Buyer Tax Credit, which was previously extended through November 30, 2009 in February's American Recovery and Reinvestment Act and was originally enacted in the Housing and Economic Recovery Act of 2008. This extension would continue the tax credit of up to $8,000 for housing deals signed by April 30, 2010 and completed by June 30, 2010.
Notes:
Maximum amount reflects the peak total loss in government revenue. Deficit impact equals zero since costs of measure would be fully offset.
Tax Provisions
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Other Business
Action Type:
Tax Break
Maximum Amount:
$420.00 billion
Amount Spent:
$244.40 billion
Deficit Impact:
$335.00 billion Provisions are part of the $787 billion "American Recovery and Reinvestment Act of 2009," a set of policies designed to mitigate the effects of the economic crisis. The act contains significant tax breaks for individuals and corporations, among other spending provisions.
Notes:
Positive numbers in table indicate spending, negative numbers indicate savings or revenue. Maximum amount is the peak cumulative cost of a provision over the period 2009-2019, though the provision may eventually cost less by 2019. Several tax provisions shift deductions for depreciation or other tax savings into the next several years. These are tax breaks that would normally be written off over a longer period of time. Much of the cost for these provisions is eventually made back in the "out" years, because it is the timing--not the amount--of an existing tax break that is being shifted. Deficit impact is the final cost of a provision from 2009-2019. Amount spent reflects CRFB calculated continuations of tax disbursal rates since last reported on Recovery.gov in June 2010, and extrapolated to the present by CRFB staff.
In the January 2010 baseline (http://www.cbo.gov/ftpdocs/108xx/doc10871/01-26-Outlook.pdf), CBO estimated that an additional $26 billion would be made available for the Build America Bond program under the Infrastructure Financing Tools of the "Other Tax Provisions" category.
Other Individual Tax Breaks
Date:
February 17, 2009
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$72.00 billion
Amount Spent:
$57.00 billion
Deficit Impact:
$72.00 billion Provisions are part of the $787 billion "American Recovery and Reinvestment Act of 2009," a set of policies designed to mitigate the effects of the economic crisis. The act contains significant spending for direct worker assistance, infrastructure, healthcare, education, aid to states, and other areas, and tax breaks for individuals and corporations.
Notes:
Maximum amount is the peak cumulative cost of a provision over the period 2009-2019, though the provision may eventually cost less by 2019. Deficit impact is the final cost of a provision from 2009-2019. Amount spent reflects CRFB calculated continuations of disbursal rates since last reported on Recovery.gov in April 2010, and extrapolated to the present by CRFB staff.
Other Individual Tax Breaks
Date:
February 17, 2009
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$0.00 billion
Deficit Impact:
$0.00 billion Provisions are part of the $787 billion "American Recovery and Reinvestment Act of 2009," a set of policies designed to mitigate the effects of the economic crisis. The act contains significant spending for direct worker assistance, infrastructure, healthcare, education, aid to states, and other areas, and tax breaks for individuals and corporations.
Notes:
Maximum amount is the peak cumulative cost of a provision over the period 2009-2019, though the provision may eventually cost less by 2019. Deficit impact is the final cost of a provision from 2009-2019. Amount is spent is currently unknown.
