Corporate Tax Breaks
Data File:
Date:
February 17, 2009
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Other Business
Action Type:
Tax Break
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.