H.R.4579 - Taxpayer Relief Act of 1998105th Congress (1997-1998)
Summary: H.R.4579 — 105th Congress (1997-1998)
Passed House amended (09/26/1998)
TABLE OF CONTENTS:
Title I: Provisions Primarily Affecting Individuals and
Subtitle A: General Provisions
Subtitle B: Provisions Relating to Education
Subtitle C: Provisions Relating to Social Security
Title II: Provisions Primarily Affecting Farming and Other
Subtitle A: Increase in Expense Treatment for Small
Subtitle B: Provisions Relating to Farmers
Subtitle C: Increase in Volume Cap on Private Activity
Title III: Extension and Modification of Certain Expiring
Subtitle A: Tax Provisions
Subtitle B: Generalized System of Preference
Title IV: Revenue Offset
Title V: Technical Corrections
Title VI: American Community Renewal Act of 1998
Title VII: Establishment of the Protect Social Security
Taxpayer Relief Act of 1998 - Title I: Provisions Affecting Individuals and Families - Subtitle A: General Provisions - Amends the Internal Revenue Code (IRC) to: (1) make the basic standard deduction on a joint return equal to twice the deduction of a single return; (2) make the aged or blind additional deduction amounts the same for married and unmarried individuals; (3) as a general rule, exclude from gross income up to $200 ($400 in the case of a joint return) of dividends and interest received by an individual; (4) revise provisions concerning the aggregate amount of nonrefundable personal credits allowed to provide that the aggregate amount of such credits shall not exceed the sum of the taxpayer's regular tax liability and the alternative minimum tax; (5) allow for the deduction of 100 percent of the health insurance costs of self-employed individuals; (6) set forth a special rule for members of the uniformed services and foreign service in determining the exclusion of gain from the sale of a principal residence; and (7) accelerate the $1 million exemption from the estate and gift taxes.
Subtitle B: Provisions Relating to Education - Permits private educational institutions to maintain qualified tuition programs which are comparable to qualified State tuition programs.
Modifies arbitrage rebate rules applicable to public school construction bonds.
Subtitle C: Provisions Relating to Social Security - Amends title II (Old Age, Survivors, and Disability Insurance) of the Social Security Act to: (1) increase the limit on earnings before there is a reduction in benefits for individuals who have attained retirement age but who are under age 70; and (2) provide for the recomputation of benefits resulting from earnings after reaching retirement age.
Title II: Provisions Primarily Affecting Farming and Other Businesses - Subtitle A: Increase in Expense Treatment for Small Businesses - Amends the IRC to accelerate the increase in the dollar limitation on the cost of property which may be expensed by businesses as depreciable assets. Directs the Secretary of the Treasury to conduct a specified study concerning depreciation methods.
Subtitle B: Provisions Relating to Farmers - Amends the Taxpayer Relief Act of 1997 to permanently extend income averaging for farmers.
Amends the IRC to provide a five-year carryback period for farming losses.
Amends the Agricultural Market Transition Act to disregard the payment option provided by the Emergency Farm Financial Relief Act.
Subtitle C: Increase in Volume Cap on Private Activity Bonds - Amends IRC provisions concerning State private activity bond volume limits to repeal the adjustment for years after 1987.
Title III: Extension and Modification of Certain Expiring Provisions - Subtitle A: Tax Provisions - Extends, for a limited period, the: (1) credit for increasing research activities; (2) work opportunity credit; and (3) welfare-to-work credit.
Extends permanently the special rule for contributions of stock for which market quotations are readily available. Establishes rules for the public inspection of the returns of private foundations.
Revises provisions concerning the special rule for income derived in the active conduct of banking, financing, or similar businesses to provide, as general rule, that foreign personal holding company income shall not include qualified banking or financing income of an eligible controlled foreign corporation. Revises the definition of insurance income and provides that, as a general rule, foreign personal holding company income shall not include qualified insurance income of a qualifying insurance company.
Subtitle B: Generalized System of Preferences - Amends the Trade Act of 1974 to extend the Generalized System of Preferences through February 29, 2000. Provides for the retroactive application of certain liquidations and reliquidations.
Title IV: Revenue Offset - Amends IRC provisions concerning the complete liquidations of subsidiaries to provide that if a corporation receives a distribution form a regulated investment company or a real estate investment trust which is considered as being in complete liquidation of such company or trust, then such corporation shall treat as a dividend from such trust or company an amount equal to the deduction for dividends paid allowable to such company or trust by reason of such distribution.
Title V: Technical Corrections - Revises provisions of the IRC, the Internal Revenue Service Restructuring and Reform Act of 1998, the Taxpayer Relief Act of 1997, the Tax Reform Act of 1984, and the Transportation Equity Act for the 21st Century.
Title VI: American Community Renewal Act of 1998 - American Community Renewal Act of 1998 - Amends the IRC to authorize the Secretary of Housing and Urban Development to designate (upon local or State nomination) up to 20 renewal communities, of which at least 20 percent shall be in rural areas.
Requires for nomination purposes that: (1) the area be experiencing high rates of poverty and unemployment and general distress; and (2) State and local governments enter into written contracts with community organizations to promote specified economic growth and employment activities.
Excludes from gross income capital gains on the sale or exchange of a qualified community asset (stock, business property, or partnership interest) held for more than five years.
Allows a specified deduction for amounts paid into a family development account on behalf of an individual or another qualified individual who is a renewal community resident. Excludes from gross income account distributions used for qualified family development expenses (postsecondary education, first-home purchase, business capitalization, medical, and rollovers). Provides a penalty (with exceptions) in addition to inclusion as gross income for nonqualifying distributions.
Provides for designation of up to five qualifying renewal communities as matching demonstration areas eligible to receive family development account matching contributions.
Authorizes: (1) designation of earned income tax credit payments for family development account deposit; (2) a commercial building revitalization tax credit; (3) increased first year expensing for renewal community businesses; (4) extension of environmental remediation cost expensing and the work opportunity credit for renewal communities; and (5) similar tax treatment of renewal communities and enterprise zones for specified youth residence requirements.
Permits a deduction for contributions to a family development account whether or not a taxpayer itemizes.
Makes conforming amendments to provisions respecting: (1) tax on excess contributions and prohibited transactions; (2) trust and annuity information; (3) tax exemption applications; and (4) the commercial revitalization credit.
Sets forth reporting requirements.
Directs the Director of the Office of Management and Budget not to make any estimates of changes in receipts under the pay-as-you-go estimate provisions of the Balanced Budget and Emergency Deficit Control Act of 1985 resulting from the enactment of this Act.
Title VII: Establishment of the Protect Social Security Account - Establishes a special reserve account to be named the Protect Social Security Account to be used to save budget surpluses until a reform measure is enacted to ensure the long-term solvency of the social security trust funds.