Below is a comprehensive analysis on the significant tax provisions of EESA provided by the staff of BNA Tax Management.

On October 3, 2008, President Bush signed into law P.L. 110-343, the Emergency Economic Stabilization Act of 2008, the principal parts of which are: (1) a $700 billion financial markets stabilization plan; and (2) $150 billion in tax benefits, which are partially offset by $40 billion in revenue-raisers.

The tax benefits include individual AMT relief, a package of energy- and conservation-related incentives, numerous extensions of expired or expiring provisions, disaster relief, plus an amendment to the §6694 penalty imposed on tax preparers for understating a taxpayer's liability. Revenue raisers include: freezing the §199 deduction for oil and gas production activities at 6%, reducing the foreign tax credit for oil and gas activities, extending the FUTA surtax, requiring brokers to report a customer's basis in securities, and currently taxing deferred compensation held offshore.

As a BNA Subscriber, you have access to further incisive analysis on these and additional topics impacted by the Emergency Economic Stabilization Act, including:

FINANCIAL PRODUCTS:

• Treat Gain or Loss From Sale or Exchange of Certain Preferred Stock as Ordinary Income or Loss

COMPENSATION PLANNING:

• Section 132(f) Employee Fringe Benefits
• Sections 162(m) and 280G Limitations for Companies Participating in Bailout

…and more.

ENERGY RELATED PROVISIONS:

• Section 25C Nonbusiness Energy Property Credit
• Section 25D Residential Energy Efficient Property
• Section 30C Alternative Fuel Vehicle Refueling Property Credit
• Section 30D Credit for New Qualified Plug-In Electric-Drive Motor Vehicles
• Section 40 Alcohol Credit
• Section 40A Biodiesel and Renewable Credit
• Section 45 Renewable Electricity Credit
• Section 45L New Energy Efficient Home Credit
• Section 45M Energy Efficient Appliance Credit
• Section 45Q Carbon Dioxide Sequestration Credit
• Section 48 Energy Credit
• Section 48A Qualifying Advanced Coal Project Credit

…and more.

ALTERNATIVE MINIMUM TAX RELIEF:

• Section 26(a)(2) AMT Relief for Nonrefundable Personal Credits
• Section 53 Credit for ISO Holders Who Paid Taxes Under the AMT
• Section 55(d) Increased Alternative Minimum Tax Exemption Amount

…and more.

INDIVIDUAL TAX RELIEF:

• Section 24 Child Tax Credit
• Section 63(c)(1)(C) Additional Standard Deduction for Real Property Taxes
• Section 108 Exclusion of Income from Discharge of Qualified Mortgage Debt
• Section 222 Deduction for Qualified Tuition and Related Expenses

…and more.

CHARITABLE GIVING TAX PROVISIONS:

• IRA Owners Making Charitable Distributions Under §408
• Section 170(e)(3)(C) Enhanced Deduction for Contributions of Food Inventory
• Section 170(e)(6) Enhanced Deduction for Qualified Computer Contributions

…and more.

BUSINESS TAX RELIEF:

• Section 41 Research Credit
• Section 45D New Markets Credit
• Section 45N Mine Rescue Team Training Credit
• Certain Farming Business Machinery and Equipment Treated As Five-Year Property Under §168
• Section 168(e)(3)(E) 15-year Straight-line Cost Recovery
• Section 168(j) Accelerated Depreciation for Business Property on Indian Reservations
• Section 179E Election to Expense Advanced Mine Safety Equipment
• Section 1367 Basis Adjustment to Stock of S Corporations Making Charitable Contributions of Property

…and more.

DISASTER RELIEF:

• National Disaster Relief
• Hurricane Ike Disaster Tax Relief
• Hurricane Katrina Extensions

…and more.

FOREIGN TAX PROVISIONS:

• Section 897 RIC Investments in U.S. Real Property
• Section 907 Expansion of Foreign Tax Credit Limitation on Foreign Oil and Gas Income
• Section 953(e) Subpart F Exception for Active Financing Income
• Section 954 Look-Thru Rule for Related CFCs

…and more.

TAX REPORTING:

• Basis Reporting by Brokers on Stock Sales Under §6045, §6045A (new) and §6045B (new)
• Modification of Return Preparer Understatement Penalty Standard Under §6694

…and more.

For more details:

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