The Tax Relief and Health Care Act of 2006 (Pub. L.Tooltip Public Law (United States) 109–432 (text) (PDF), 120 Stat. 2922), includes a package of tax extenders, provisions affecting health savings accounts and other provisions in the United States.
Tax Relief and Health Care Act of 2006
Long title
An act to amend the Internal Revenue Code of 1986 to extend expiring provisions, and for other purposes
Elective itemized deduction for state and local general sales taxes (in lieu of a deduction for state and local income taxes)
Research credit
For tax years ending after December 31, 2006, the Act also modifies the rules for calculating the research credit: it increases the rates of the alternative incremental credit and creates a new alternative simplified credit
Work opportunity tax credit, welfare-to-work tax credit
Accelerated depreciation for business property on Indian reservations
Fifteen-year depreciation for qualified leasehold improvements and qualified restaurant property
Enhanced charitable deductions—for corporate donations of scientific property used for research, and of computer technology and equipment
Archer medical savings accounts
Suspension of the taxable income limit on percentage depletion for oil and natural gas produced from marginal properties
In addition, the Act extended (through December 31, 2007) certain provisions that would otherwise expire at the end of 2006, including:
Election to treat combat pay as earned income for purposes of calculating the earned income credit
Provisions affecting IRS disclosure of certain tax return information
The Act extended the new markets tax credit through the end of 2008 and requires that future regulations ensure that non-metropolitan counties receive a proportional allocation of qualified entity investments.
The Act extended through December 31, 2008, numerous energy provisions that would otherwise have expired at the end of 2007, including:
Tax credit for electricity produced from certain renewable resources
Authority to issue clean renewable energy bonds
Deduction for energy-efficient commercial buildings
Tax credit for new energy-efficient homes
Tax credit for residential energy-efficient property
Several provisions affect health savings accounts (HSAs), including provisions dealing with limitations on HSA contributions and tax-free rollovers to HSAs from health reimbursement accounts, flexible spending accounts and individual retirement accounts.
Other provisionsedit
This section relies largely or entirely on a single source. Relevant discussion may be found on the talk page. Please help improve this article by introducing citations to additional sources. Find sources: "Tax Relief and Health Care Act of 2006" – news · newspapers · books · scholar · JSTOR(October 2016)
Other provisions include:
Expansion of the Section 199 domestic production activity deduction to income from Puerto Rico, if all Puerto Rican receipts are subject to federal income tax
A refundable credit of 20 percent of the long-term unused alternative minimum tax credits per year for the next five years, subject to certain limitations and phaseouts
Enhancing reporting requirements for the exercise of incentive stock options and employee stock purchase plans
Reform and expansion of whistleblower awards to certain individuals who provide information regarding violations of the tax laws
An increase of the penalty for frivolous tax submissions from $500 to $5,000 and an extension of the scope of the penalty
A temporary itemized deduction for qualified mortgage insurance premiums accrued during 2007, subject to limitations and phase-out
Increased information sharing between the IRS and certain regional governmental organizations
Charitable remainder trusts having unrelated business taxable income are subjected to an excise tax equal to 100% of unrelated business taxable income
A technical correction to the Subpart F look-through rule under the Tax Increase Prevention and Reconciliation Act of 2005
Clarifying that the Tax Court has jurisdiction to review requests for equitable innocent spouse relief
Ordering the completion without delay of the All-American Canal Lining Project and identifying a 1944 treaty between the US and Mexico as the exclusive authority concerning the impacts of projects constructed within US territory on foreign territories[1]
The Act makes permanent certain provisions that were included as temporary provisions in the Tax Increase Prevention and Reconciliation Act of 2005 and were otherwise scheduled to expire after 2010, including:
Federal income tax exemption of certain qualified settlement funds established to resolve CERCLA claims
"Separate affiliated group" rule for satisfaction of active trade or business requirement under Section 355
Election to treat self-created musical works as capital assets
Exemption from imputed interest rules for certain loans to qualified continuing care facilities
Referencesedit
^Ries, Nicole (2008). "The (Almost) All-American Canal: Consejo de Desarrollo Economico de Mexicali v. United States and the Pursuit of Environmental Justice in Transboundary Resource Management". Ecology Law Quarterly. 35 (3): 491–530. Retrieved 31 December 2012.
CRS Report in the public domain
External linksedit
H.R. 6111, Legislative History
January 01, 1970
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The Tax Relief and Health Care Act of 2006 Pub L Tooltip Public Law United States 109 432 text PDF 120 Stat 2922 includes a package of tax extenders provisions affecting health savings accounts and other provisions in the United States Tax Relief and Health Care Act of 2006Long titleAn act to amend the Internal Revenue Code of 1986 to extend expiring provisions and for other purposesEnacted bythe 109th United States CongressEffective4 January 2007CitationsPublic lawPub L Tooltip Public Law United States 109 432 text PDF Statutes at Large120 Stat 2922CodificationTitles amended12 15 16 19 25 26 29 30 42 43Legislative historyIntroduced in the House as H R 6111 by Ellen O Tauscher D CA on 19 September 2006Committee consideration by Ways and MeansPassed the House on 5 December 2006 Voice Passed the Senate on 7 December 2006 Unanimous Consent with amendmentHouse agreed to Senate amendment on 8 December 2006 367 45 with further amendmentSenate agreed to House amendment on 9 December 2006 79 9 Signed into law by President George W Bush on 20 December 2006 President Bush signs the act into law Contents 1 Tax provisions 1 1 Extenders 2 Health savings account provisions 3 Other provisions 4 References 5 External linksTax provisions editThis section does not cite any sources Please help improve this section by adding citations to reliable sources Unsourced material may be challenged and removed October 2016 Learn how and when to remove this message Extenders edit The Act retroactively extended for two years through December 31 2007 certain provisions that had expired at the end of 2005 including Above the line deduction for qualified tuition and higher education expenses Elective itemized deduction for state and local general sales taxes in lieu of a deduction for state and local income taxes Research credit For tax years ending after December 31 2006 the Act also modifies the rules for calculating the research credit it increases the rates of the alternative incremental credit and creates a new alternative simplified credit Work opportunity tax credit welfare to work tax credit Tax credit for Qualified Zone Academy Bonds Up to 250 above the line deduction for certain expenses of elementary and secondary school teachers Expensing of brownfields remediation costs Tax incentives for investment in Washington DC Indian employment tax credit Accelerated depreciation for business property on Indian reservations Fifteen year depreciation for qualified leasehold improvements and qualified restaurant property Enhanced charitable deductions for corporate donations of scientific property used for research and of computer technology and equipment Archer medical savings accounts Suspension of the taxable income limit on percentage depletion for oil and natural gas produced from marginal properties In addition the Act extended through December 31 2007 certain provisions that would otherwise expire at the end of 2006 including Election to treat combat pay as earned income for purposes of calculating the earned income credit Provisions affecting IRS disclosure of certain tax return information The Act extended the new markets tax credit through the end of 2008 and requires that future regulations ensure that non metropolitan counties receive a proportional allocation of qualified entity investments The Act extended through December 31 2008 numerous energy provisions that would otherwise have expired at the end of 2007 including Tax credit for electricity produced from certain renewable resources Authority to issue clean renewable energy bonds Deduction for energy efficient commercial buildings Tax credit for new energy efficient homes Tax credit for residential energy efficient propertyHealth savings account provisions editThis section does not cite any sources Please help improve this section by adding citations to reliable sources Unsourced material may be challenged and removed October 2016 Learn how and when to remove this message Several provisions affect health savings accounts HSAs including provisions dealing with limitations on HSA contributions and tax free rollovers to HSAs from health reimbursement accounts flexible spending accounts and individual retirement accounts Other provisions editThis section relies largely or entirely on a single source Relevant discussion may be found on the talk page Please help improve this article by introducing citations to additional sources Find sources Tax Relief and Health Care Act of 2006 news newspapers books scholar JSTOR October 2016 Other provisions include Expansion of the Section 199 domestic production activity deduction to income from Puerto Rico if all Puerto Rican receipts are subject to federal income tax A refundable credit of 20 percent of the long term unused alternative minimum tax credits per year for the next five years subject to certain limitations and phaseouts Enhancing reporting requirements for the exercise of incentive stock options and employee stock purchase plans Reform and expansion of whistleblower awards to certain individuals who provide information regarding violations of the tax laws An increase of the penalty for frivolous tax submissions from 500 to 5 000 and an extension of the scope of the penalty A temporary itemized deduction for qualified mortgage insurance premiums accrued during 2007 subject to limitations and phase out Increased information sharing between the IRS and certain regional governmental organizations Charitable remainder trusts having unrelated business taxable income are subjected to an excise tax equal to 100 of unrelated business taxable income A technical correction to the Subpart F look through rule under the Tax Increase Prevention and Reconciliation Act of 2005 Clarifying that the Tax Court has jurisdiction to review requests for equitable innocent spouse relief Expanding the Medicare Recovery Audit Contractor program to all 50 states and making it permanent Ordering the completion without delay of the All American Canal Lining Project and identifying a 1944 treaty between the US and Mexico as the exclusive authority concerning the impacts of projects constructed within US territory on foreign territories 1 The Act makes permanent certain provisions that were included as temporary provisions in the Tax Increase Prevention and Reconciliation Act of 2005 and were otherwise scheduled to expire after 2010 including Federal income tax exemption of certain qualified settlement funds established to resolve CERCLA claims Separate affiliated group rule for satisfaction of active trade or business requirement under Section 355 Election to treat self created musical works as capital assets Exemption from imputed interest rules for certain loans to qualified continuing care facilitiesReferences edit Ries Nicole 2008 The Almost All American Canal Consejo de Desarrollo Economico de Mexicali v United States and the Pursuit of Environmental Justice in Transboundary Resource Management Ecology Law Quarterly 35 3 491 530 Retrieved 31 December 2012 CRS Report in the public domainExternal links editH R 6111 Legislative History Retrieved from https en wikipedia org w index php title Tax Relief and Health Care Act of 2006 amp oldid 1196640423, wikipedia, wiki, book, books, library,
