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Pork Barrel Tax Provisions in the Extenders Bill

1 min readBy: Scott Hodge

Reading through the taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. provisions of the misnamed “American Jobs and Closing Tax Loopholes Act of 2010” is like reading a pork barrel laden appropriations bill. The vast majority of the so-called tax cuts are essentially earmarked spending through the tax code.

Below is a short list of some of the more glaring giveaways in the bill. Some of the bigger winners are local governments who will benefit from taxpayer-subsidized bond authority and the alternative energy industry who are getting a windfall of targeted tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. s. The more curious “business” tax breaks are the tax benefit for “certain motorsports entertainment complexes” and the special expensing rules for film and television productions.


2010 Cost in Millions

10-Year Cost in Millions

Extend Build America Bonds



Alternative motor vehicle credit for new qualified hybrid motor vehicles other than passenger automobiles and light trucks



Excise tax credits and outlay payments for biodiesel and renewable diesel



Extend and modify credit for electricity produced at open-loop biomass facilities placed in service before 10/22/04



Extend and modify credit for steel industry fuel



Credit for construction of energy efficient new homes



Incentives for alternative fuel and alternative fuel mixtures



Direct payment of energy-efficient appliance tax credit



Deduction for certain expenses of elementary and secondary school teachers



Election for direct payment of low-income housing credit



7-year recovery period for certain motorsports entertainment complexes



Enhanced charitable deduction for contributions of food inventory



Enhanced charitable deduction for contributions of book inventory



Enhanced charitable deduction for qualified computer contributions



Special expensing rules for qualified film and television productions



Tax incentives for investment in the District of Columbia



Payment to American Samoa in lieu of extension of economic development credit



Bill Summary:

JCT estimate: