Pork Barrel Tax Provisions in the Extenders Bill May 27, 2010 Scott Hodge Scott Hodge Reading through the tax 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 credits. 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. Item 2010 Cost in Millions 10-Year Cost in Millions Extend Build America Bonds $0 $4,042 Alternative motor vehicle credit for new qualified hybrid motor vehicles other than passenger automobiles and light trucks $3 $8 Excise tax credits and outlay payments for biodiesel and renewable diesel $634 $868 Extend and modify credit for electricity produced at open-loop biomass facilities placed in service before 10/22/04 $43 $84 Extend and modify credit for steel industry fuel $13 $44 Credit for construction of energy efficient new homes $23 $66 Incentives for alternative fuel and alternative fuel mixtures $73 $96 Direct payment of energy-efficient appliance tax credit $68 $69 Deduction for certain expenses of elementary and secondary school teachers $43 $215 Election for direct payment of low-income housing credit $3,072 $11 7-year recovery period for certain motorsports entertainment complexes $11 $38 Enhanced charitable deduction for contributions of food inventory $43 $78 Enhanced charitable deduction for contributions of book inventory $17 $31 Enhanced charitable deduction for qualified computer contributions $107 $195 Special expensing rules for qualified film and television productions $54 $46 Tax incentives for investment in the District of Columbia $55 $85 Payment to American Samoa in lieu of extension of economic development credit $18 $18 Bill Summary: http://waysandmeans.house.gov/media/pdf/111/America_Jobs_Summary.pdf JCT estimate: http://waysandmeans.house.gov/media/pdf/111/HR4213_JCT.pdf Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for Federal Tax Policy Individual Tax Expenditures, Credits, and Deductions Tags Film Tax Credits
