Stimulus.org - Other Business

Other Investment and Tax Incentives

Jason Peuquet — Fri, 07 Jan 2011 16:23:09 +0000

Date:

December 17, 2010

Who:

IRS

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Economic Target:

Manufacturers

Economic Target:

Other Business

Action Type:

Tax Break

Maximum Amount:

156808000000

Deficit Impact:

77178000000

The 2010 tax cut package included a provision that would temporarily allow businesses to immediately write off the costs of equipment for the next two years. In addition, the package included a number of tax extenders that provide various targeted benefits.

Source:

CBO Cost Estimate

Notes:

Maximum amount represents peak cost of these provision in the ten-year window. Deficit impact represents net costs of these provision from 2011-2020. Because the cost of the business expensing will be partially recouped after it expires, there is a significant difference between these two numbers.

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2-Year Extension of 2001/2003 Tax Cuts

Jason Peuquet — Fri, 07 Jan 2011 16:04:32 +0000

Date:

December 17, 2010

Who:

IRS

Economic Target:

Consumers

Economic Target:

Other Business

Action Type:

Tax Break

Maximum Amount:

407640000000

Deficit Impact:

407640000000

The 2010 tax cut included a two-year extension of all the provisions from the 2001/2003 tax cuts.

Source:

CBO Cost Estimate

Notes:

Maximum amount and deficit impact represent gross and net cost, respectively, of this portion of the bill from 2011-2020.

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2010 Tax Cut

Jason Peuquet — Fri, 07 Jan 2011 15:58:23 +0000

Who:

Congress

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Economic Target:

Other Business

Action Type:

Direct Spending

Action Type:

Tax Break

Maximum Amount:

937440000000

Deficit Impact:

857810000000

With the initial expiration of ther 2001/2003 tax cuts set for December 31, 2010, lawmakers acted to prevent the tax cuts from expiring. The 2001/2003 tax cuts were extended for all taxpayers for two years, beyond the President's initial proposal of extending them only for those earning under $200,000 ($250,000 for couples).

Included in the tax cut deal were several additional tax cuts and extensions: a 13-month extension in unemployment insurance, a temporary two percentage point cut in the Social Security payroll tax on the employee side (bringing the rate down from 6.2 to 4.2 percent), a two-year AMT patch, temporary full business expensing for new equipment, an extension of ARRA changes to refundable tax credits, and several other tax incentives.

The total deficit impact of the bill was estimated to be $858 over the coming decade, larger than the $821 billion stimulus package passed in early 2009.

Source:

CBO Cost Analysis of Tax Cut Package

Notes:

Maximum amount represents peak cost of provisions in the ten-year window. Deficit impact represents net impact of the bill from 2011-2020.

CRFB Commentary on Tax Cut Package

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Net Carryback Loss Extension and Expansion

Jason Peuquet — Fri, 06 Nov 2009 22:05:04 +0000

Date:

November 6, 2009

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Other Business

Action Type:

Tax Break

Maximum Amount:

33197000000

Amount Spent:

33197000000

Deficit Impact:

59000000

This provision would reduce corporate taxes by extending net operating loss carryback rules under the stimulus act from two to five years. This means that, for the purpose of taxation, businesses will be able to subtract losses in 2008 and 2009 from profits over the last five years - and in turn recieve a tax refund. A measure in February's American Recovery and Reinvestment Act increased the carryback loss period from two to five years for small businesses, but this rule now applies to companies of all sizes.

The provision was passed as part of the Worker, Homeownership, and Business Assistance Act of 2009 along with an extension of the homebuyer tax credit and of unemployment benefits.

The provision would cost $33 billion in 2010. However, because it largely defers rather than reduces taxes, it would cost closer to $10 billion over a ten year period. And this cost would be offset -- mainly by delaying, until 2018, a rule to allow the worldwide allocation of interest for the purposes of taxation.

Source:

JCT: Worker, Homeownership, and Business Assistance Act of 2009

CBO: Worker, Homeownership, and Business Assistance Act of 2009

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).

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Tax Provisions

Jason Peuquet — Tue, 03 Nov 2009 22:25:39 +0000

Who:

IRS

Policy Area:

Fiscal Policy

Economic Target:

Other Business

Action Type:

Tax Break

Maximum Amount:

420000000000

Amount Spent:

284500000000

Deficit Impact:

275000000000

Provisions are part of the $821 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.

Source:

Analysis of the Final Bill by the Joint Committee on Taxation

Text of "American Recovery and Reinvestment Act of 2009"

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 December 2010 and extrapolated to the present by CRFB staff.

In the January 2010 baseline, 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.

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Spending Provisions

Jason Peuquet — Tue, 03 Nov 2009 22:22:42 +0000

Who:

Congress

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Other Business

Action Type:

Direct Spending

Maximum Amount:

551000000000

Amount Spent:

477502000000

Deficit Impact:

556000000000

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.

Source:

CBO Analysis of Final Bill

Text of "American Recovery and Reinvestment Act of 2009"

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. Deficit impact is taken from CBO's deficit impact calculation for 2009-2019. Amount Spent as of 9/21/2012 (http://www.recovery.gov/?q=/content/agency-summary&agency_code=75).

In the January 2010 baseline, CBO estimated that the total cost of the bill would total $862 billion, after making several upward revisions (including $21 billion more for unemployment insurance, $34 billion more for food stamps, and $3 billion less for Medicaid state matching).

CBO's August 2010 Budget Update re-estimated the total of ARRA, putting the number at $814 billion.

CBO's January 2011 baseline upped the estimate of ARRA slightly to $821 billion.

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Temporary Corporate Tax Cuts

Maya MacGuineas — Fri, 10 Jul 2009 19:05:11 +0000

Date:

February 13, 2008

Policy Area:

Fiscal Policy

Economic Target:

Other Business

Action Type:

Tax Break

Maximum Amount:

51000000000

Amount Spent:

51000000000

Deficit Impact:

7500000000

This law (H.R. 5140) included two provisions aimed at providing temporary tax breaks for businesses. The first provision allowed businesses to deduct 50 percent of their investments in certain depreciable property (e.g. equipment and computer software) from 2008 taxable income. The second provision increased the expensing allowance for depreciable business assets up to $250,000 and increased the maximum phase-out threshold for the allowance to $800,000.

Source:

Economic Stimulus Act of 2008

Notes:

Maximum Amount indicate CBO estimates for Fiscal Year 2008 and Fiscal Year 2009. Amount spent is CBO estimated cost for fiscal year 2008. Deficit Impact indicates CBO projection over ten years.

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Corporate Tax Breaks

Maya MacGuineas — Fri, 10 Jul 2009 18:56:45 +0000

Stimulus 2009 - Corporate Tax Breaks

Date:

February 17, 2009

Who:

IRS

Policy Area:

Fiscal Policy

Economic Target:

Other Business

Action Type:

Tax Break

Maximum Amount:

76000000000

Amount Spent:

32100000000

Deficit Impact:

6000000000

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

Source:

Analysis of the Final Bill by the Joint Committee on Taxation

Text of "American Recovery and Reinvestment Act of 2009"

IRS Guidance on Small Business 5 Year "Carryback" Tax Provision

Recovery.gov

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.

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SBA Actions Promoting Small Business Lending

suggp — Fri, 10 Jul 2009 18:47:09 +0000

Date:

March 16, 2009

Who:

SBA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Other Business

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

Programs are part of a package of government actions by the Treasury Department and Small Business Administration (SBA) on March 16, 2009 to promote small business lending.

These measures include:

• Eliminating borrower and lender fees for SBA-backed 504 loans, which combines government-backed loans with private mortgage loans to support community development.

• Eliminating up-front fees for SBA 7(a) loans.

• Providing rebates for loan fees paid since February 17th.

• Expediting future SBA loan processing.

• Requiring the 21 biggest banks receiving federal money must compile monthly reports on their levels of small business lending. The Treasury department also calls on all banks to report on their small business lending quarterly, rather than annually.

Source:

Treasury Announcement 3/16/2009

Program Q & A

Notes:

Costs of provisions are unknown.

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Health Care Spending

Maya MacGuineas — Fri, 10 Jul 2009 18:22:53 +0000

Stimulus 2009 - Health Care Spending

Date:

February 17, 2009

Who:

Congress

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Other Business

Action Type:

Direct Spending

Maximum Amount:

146000000000

Amount Spent:

114416000000

Deficit Impact:

126000000000

Health Care Spending (in millions of dollars)
Year	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2009-2019
Medicaid Matches (State Fiscal Relief)*	33,881	43,923	11,847	3,885	-6	35	44	56	57	59	59	93,042
National Institutes of Health	855	3,286	3,703	1,505	249	118	27	0	0	0	0	9,743
National Coordinator for Health Information Technology	300	1,280	360	40	0	0	0	0	0	0	0	1,980
Other Department of Health and Human Services	2,173	3,009	2,358	1,612	593	65	0	0	0	0	0	9,810
Health Information Technology	417	178	4,741	6,469	6,463	14,231	3,848	-5,535	-4,980	-2,780	-2,233	20,819
Savings from Health Insurance Assistance	0	-52	-86	-93	-75	-46	-29	-10	-1	0	0	-392
Savings from Health Information Technology	0	0	-120	-250	-360	-410	-435	-435	-425	-415	-410	-3,260
Totals	37,626	51,624	22,803	9,371	6,864	13,993	3,455	-5,924	-5,349	-3,136	-2,584	125,742

Source:

CBO Analysis of Final Bill

Text of "American Recovery and Reinvestment Act of 2009"

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. Deficit impact is taken from CBO's deficit impact calculation for 2009-2019. Amount Spent as of 11/3/2012 (http://www.recovery.gov/?q=/content/agency-summary&agency_code=75).

*In the Budget and Economic Update in August 2009 (http://cbo.gov/ftpdocs/105xx/doc10521/08-25-BudgetUpdate.pdf), CBO estimated that an additional $2 billion would be made available for Medicaid matches, increasing the maximum amount for Health Care Spending. However, in the January 2010 baseline (http://www.cbo.gov/ftpdocs/108xx/doc10871/01-26-Outlook.pdf), CBO estimated that total Medicaid matching will be $3 billion lower.

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Infrastructure

Maya MacGuineas — Fri, 10 Jul 2009 18:21:14 +0000

Stimulus 2009 - Infrastructure

Date:

February 17, 2009

Who:

Congress

Policy Area:

Fiscal Policy

Economic Target:

Other Business

Action Type:

Direct Spending

Maximum Amount:

139000000000

Amount Spent:

133104000000

Deficit Impact:

139000000000

Infrastructure (in millions of dollars)
Year	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2009-2019
Distance Learning, Telemedicine, and Broadband Program	63	350	587	575	475	325	125	0	0	0	0	2,500
Broadband Technology Opportunities Program	84	756	860	1,250	1,210	390	150	0	0	0	0	4,700
Energy and Water Development	3,159	9,389	11,063	9,988	6,945	5,090	2,234	1,317	1,150	470	-30	50,775
Federal Buildings Fund	400	900	1,000	1,100	1,000	500	300	150	50	0	0	5,400
Clean Water and Drinking Water State Revolving Funds	180	1,380	1,800	1,240	600	320	120	68	36	42	0	5,786
Highway Construction	2,750	6,875	5,500	4,125	3,025	2,750	1,925	550	0	0	0	27,500
Other Transportation	2,232	2,511	3,285	2,910	3,027	2,672	1,987	1,051	400	320	160	20,555
Public Housing Capital Fund	80	1,200	1,200	800	640	40	40	0	0	0	0	4,000
Other Infrastructure Projects in Agriculture, Rural Development, Food and Drug Administration, and Related Agencies	816	1,623	736	421	172	138	34	0	0	0	0	3,940
Other Infrastructure Projects in Interior, Environment, and Related Agencies	988	2,118	897	531	183	9	9	9	9	6	0	4,759
Department of Defense	1,679	2,122	551	129	36	11	3	0	0	0	0	4,531
Homeland Security	506	591	857	457	230	93	10	0	0	0	0	2,744
Other Infrastructure Projects in Military Construction,Veterans Affairs, and Related Agencies	448	1,564	1,229	638	241	93	33	0	0	0	0	4,246
Other Infrastructure Projects in State, Foreign Operations and Related Programs	96	180	162	114	50	0	0	0	0	0	0	602
Totals	13,481	31,559	29,727	24,278	17,834	12,431	6,970	3,145	1,645	838	130	139,038*

Source:

CBO Analysis of Final Bill

Text of "American Recovery and Reinvestment Act of 2009"

Notes:

Positive numbers in table indicate spending, negative numbers indicate savings or revenue. Maximum amount is taken from CBO's calculation of budget authority over the 2009-2019 period. Deficit impact is taken from CBO's deficit impact calculation for 2009-2019. Amount spent as of 11/3/2012. Individual provisions may include some smaller specific measures not directly related to infrastructure spending, but these items do not significantly alter total figures.

*In CBO's January 2010 Budget and Economic Outlook, it revised its cost estimates for infrastructure down by $3 billion, bringing the total cost to $139 billion.

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