Notice

Stimulus.org is a historical project of the Committee for a Responsible Federal Budget, which tracked the money spent by the 2009 stimulus bill. This site is not regularly updated.

Corporate Tax Breaks

Date: 
February 17, 2009
Who: 
Policy Area: 
Economic Target: 
Action Type: 
Maximum Amount: 
$76.00 billion
Amount Spent: 
$32.10 billion
Deficit Impact: 
$6.00 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.

On 3/16/2009, the Obama administration's announcement on assistance for small business also provided an IRS guidance for the administration's small business-related tax provisions in the $787 billion February stimulus. This provision allows businesses with up to $15 million in revenue to "carry back" any losses into the five previous years. The administration also re-stated its other small-business tax breaks, including immediate write-offs of up to $250,000, reductions in estimated tax payments, extending bonus depreciation deduction, and reducing capital gains taxes on small business investors.

 

Corporate Tax Breaks (in millions of dollars)











Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009-2019
Special allowance for certain property acquired
during 2009
23,523 15,285 -8,096 -6,548 -5,607 -4,574 -3,061 -1,951 -1,225 -1225 -930 5,879
Expensing increase 642 425 -352 -222 -162 -125 -79 -45 -22 -10 -10 41
5-year carry-back for small businesses 4,741 -708 -753 -648 -486 -365 -274 -205 -154 -115 -87 947
Reduce required estimated tax payments in 2009
for certain small businesses
275 -275 0 0 0 0 0 0 0 0 0  
Incentives to hire unemployed veterans 32 81 70 28 11 6 2 0 0 0 0 231
Deferral and ratable inclusion of income arising
from business indebtedness discharged by the
reacquisition of a debt instrument, and temporary AHYDO exception for debt exchange or modifcation
12,113 22,803 7,479 483 269 -4,948 -8,349 -8,328 -8,306 -8,285 -3,310 1,622
Special rules applicable to qualified small
business stock for 2009 and 2010
-2 -6 -2 0 0 207 360 163 50 36 22 829
Temporarily reduce the S corporation built-in gains holding period from 10 to 7 years 31 154 73 32 28 19 20 16 14 13 15 415
Clarification of regulations related to limitations
on certain built-in losses following an ownership
change
-1,437 -1,775 -646 -261 -225 -304 -419 -457 -470 -484 -499 -6,977
Treatment of certain ownership changes of
manufacturing firms for purposes of limitation
on net operating loss carryforwards and certain
built-in losses
0 0 19 19 181 289 289 491 625 625 625 3,163
Totals 39,918 35,984 -2,208 -7,117 -5,991 -9,795 -11,511 -10,316 -9,488 -9,445 -4,174 6,150

 

 

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 disbursal rates since last reported on Recovery.gov in December 2010, and extrapolated to the present by CRFB staff.
 

 

 

Website Design and Development, Washington DC