Description of Expiring Tax Provisions: Scheduled for a Hearing Before the Subcommittee on Taxation and Debt Management of the Senate Committee on Finance on March 28, 1988U.S. Government Printing Office, 1988 - 26 pages |
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allocating and apportioning allocation and apportionment August 13 base period beginning after August bond financing corporation credit for biomass credit for qualified December 31 disadvantaged summer youth educational assistance Energy Tax Act energy tax credit excise tax exemption expired for taxable Finance financially troubled thrift foreign tax credit geothermal gross income method group legal services incremental credit jobs tax credit legal services plan Legislative Background limitation category loans March 28 mortgagors ocean thermal property percent for 1987 place-of-performance pre-credit U.S. tax Present Law Prior Law private activity bonds proposal qualified mortgage bonds qualified research expenditures R&D regulation residence rules for allocating scheduled to expire Senate Senate Finance Committee September 30 source gross income source taxable income summer youth employees targeted group targeted jobs tax tax credit limitations tax provisions Tax Reform Act taxable years beginning taxpayer tion trade or business U.S. and Foreign U.S. tax liability wages paid
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Page 9 - ... definitely be allocated to some item or class of gross income. The remainder, if any, shall be included in full as net income from sources within the United States.
Page 25 - ... prior to the satisfaction of all liabilities with respect to employees and their beneficiaries under the trust, for any part of the corpus or income to be (within the taxable year or thereafter) used for, or diverted to, purposes other than for the exclusive benefit of his employees or their beneficiaries...
Page 15 - In the case of an individual who owns an interest in an unincorporated trade or business, who is a beneficiary of a trust or estate, who is a partner in a partnership, or who is a shareholder in a...
Page 3 - The following tax provisions are scheduled to expire at the end of 1988, unless otherwise indicated: (1) 20-percent tax credit for qualified research expenditures; (2) 10-percent energy tax credits for solar and geothermal property, and 15-percent credit for ocean thermal property; (3) Targeted jobs tax credit; (4) Tax exemption for qualified mortgage bonds and election to issue mortgage credit certificates; (5) Certain rules relating to financially troubled thrift institutions (reorganizations,...
Page 21 - ... may elect to exchange qualified mortgage bond authority for authority to issue mortgage credit certificates (MCCs) (sec. 25). MCCs entitle homebuyers to nonrefundable income tax credits for a specified percentage of interest paid on mortgage loans on their principal residences. Once issued, an MCC remains in effect as long as the residence being financed continues to be the certificate-recipient's principal residence. MCCs are generally subject to the same eligibility and targeted area requirements...
Page 13 - ... research floors plus (b) an amount reflecting any decrease in nonresearch giving to universities by the corporation as compared to such giving during a fixed-base period, as adjusted for inflation. This separate credit computation is commonly referred to as the "university basic research credit
Page 13 - The 1986 Act provided statutory rules defining qualified research for purposes of the incremental credit. These rules target the credit to research undertaken to discover information that is technological in nature and that pertains to functional aspects of products. Also, the 1986 Act expressly excluded certain types of expenditures from eligibility for the credit, including post-production research activities, duplication or adaptation costs, and surveys, studies, and certain other costs. The definitional...
Page 10 - ... source deduction converts an amount of US source taxable income to foreign source taxable income, thus increasing the foreign tax credit limitation and reducing the taxpayer's current US tax liability by approximately 34 cents for each dollar of deduction that is converted from foreign to US source. Conversely, upon a change in the allocation rules that shifts deductions from US to foreign income, a taxpayer with excess credits (or a taxpayer that previously had excess limit and finds itself,...
Page 13 - A 20-percent research tax credit also applied to the excess of ( 1) 100 percent of corporate cash expenditures (including grants or contributions) paid for basic research conducted by universities (and certain...
Page 19 - Interest on bonds issued by a State or local government to finance governmental activities generally is tax-exempt (Code sec. 103). Interest on private activity bonds is taxable unless a specific exception is provided in the Internal Revenue Code. Private activity bonds are bonds that satisfy one or both of (1) a private business use and private payment test and (2) a private loan test. Private activity bonds qualifying for tax-exemption include exempt-facility bonds, small-issue bonds, qualified...