RIA's Complete Analysis of the Tax and Benefits Provisions
of the American Recovery and Reinvestment Act of 2009 -- Order
your copy today!
RIA's Highlights of the Tax and Benefits Provisions of the
American Recovery and Reinvestment Act of 2009 -- Order
your copy today!
Self Study CPE
This course covers many tax breaks for individuals and businesses such as a
refundable "making work pay" stimulus credit, enhanced child tax credit,
an improved homebuyer credit, and much more. This self-study course is free.
(There is a $49.00 grading fee.)
The New COBRA Subsidy Rules Your essential resource for the most in-depth and timely analysis of this
new legislation from our expert editorial staff at RIA and EBIA.
The American Recovery and Reinvestment Act of 2009 (the Recovery Act), which
was signed into law by the President on Feb. 17, 2009, includes many tax breaks
for businesses and individuals as well as energy incentives and important bond
changes, including the following:
Tax breaks for businesses. These include extended bonus
depreciation and increased expensing for 2009, longer NOL carrybacks for some,
deferral on debt discharge income from reacquisitions of debt, reduced capital
gains tax for holders of qualified small business stock, and a shortened S
corporation built-in gain holding period.
Tax breaks for individuals. These include a refundable
tax credit of up to $400 per worker ($800 per couple filing jointly), phasing
out completely at $190,000 for couples filing jointly and $95,000 for single
filers, eased child tax credit and earned income tax credit rules, a beefed-up
tax credit for higher education, an enhanced credit for first-time home purchases
with the removal of the repayment requirement, a tax deduction for state sales
and excise taxes paid on the purchase of new cars, including light trucks
and SUVs, motorcycles and motor homes, and a 65% subsidy for COBRA premiums
for up to nine months.
AMT relief. The Recovery Act boosts AMT exemption amounts
for individuals for 2009, and also provides that for 2009, personal nonrefundable
credits may offset AMT and regular tax. Additionally, interest on qualifying
private activity bonds issued in 2009 or 2010 isn't treated as an AMT preference
(nor is there an ACE adjustment for interest on tax-exempts issued in 2009
or 2010).
Energy incentives. These include a three-year extension
of the production tax credit (PTC) for electricity derived from wind (through
2012) and for electricity derived from biomass, geothermal, hydropower, landfill
gas, waste-to-energy, and marine facilities (through 2013), extension through
2010 and expansion of tax credits for home energy efficiency for purchases
such as new furnaces, energy-efficient windows and doors, or insulation, a
tax credit of up to $5,000 for families that purchase plug-in hybrid vehicles
and a new manufacturing investment tax credit for investment in advanced energy
facilities, such as facilities that manufacture components for the production
of renewable energy, advanced battery technology, and other innovative next-generation
green technologies.
Read the full summary of provisions
from Senate Finance, House Ways & Means Committees.
RIA Special Study: Key
Tax Changes in the American Recovery and Reinvestment Act of 2009
