Motion to Concur in the Senate Amendment with an Amendment to H.R. 3090 - Economic Security and Recovery Act of 2001

COMMITTEE ACTION: REPORTED BY VOICE VOTE on Wednesday, March 6, 2002.
FLOOR ACTION: ADOPTED BY VOICE VOTE on Thursday, March 7, 2002,
AFTER AGREEING TO THE PREVIOUS QUESTION 217-192.
MANAGERS: PRYCE/HASTINGS (FL)
107th Congress
2nd Session

H. RES. 360
[Report No. 107-367]

Motion to Concur in the Senate Amendment with an Amendment to
H.R. 3090 – Economic Security and Recovery Act of 2001

1. Provides for a motion offered by the chairman of the Committee on Ways and Means or his designee that the House concur in the Senate amendment with the amendment printed in the report of the Committee on Rules accompanying the resolution.

2. Waives all points of order against consideration of the motion to concur in the Senate amendment with an amendment.

3. Provides one hour of debate in the House equally divided and controlled by the chairman and ranking minority member of the Committee on Ways and Means.

4. Provides that the previous question shall be considered as ordered on the motion to final adoption without intervening motion.

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RESOLUTION

Resolved, That upon adoption of this resolution it shall be in order to take from the Speaker's table the bill (H.R. 3090) to provide tax incentives for economic recovery, with the Senate amendment thereto, and to consider in the House, without intervention of any point of order, a motion offered by the chairman of the Committee on Ways and Means or his designee that the House concur in the Senate amendment with the amendment printed in the report of the Committee on Rules accompanying this resolution. The Senate amendment and the motion shall be considered as read. The motion shall be debatable for one hour equally divided and controlled by the chairman and ranking minority member of the Committee on Ways and Means. The previous question shall be considered as ordered on the motion to final adoption without intervening motion.


AMENDMENT INCLUDED IN THE MOTION

Summary of Amendment

(summary derived from information provided by the amendment sponsor)

Thomas (CA)

Job Creation Business Provisions:
Special depreciation allowance for certain property – 30% expensing of the value of capital assets with 1) MACRS lives of 20 years or less, 2) leasehold improvements, and 3) purchased software with one-year placed in service extension for certain property subject to a long production period. It will conform AMT depreciation for property eligible for the special depreciation allowance (sunset after 36 months).

    The amendment would provide a 5-year carryback of net operating losses and would waive the AMT 90% limitation on the allowance of losses (including losses carried forward into tax years ending in 2001 and 2002) (Sunset after 24 months).

    Unemployment Assistance Provisions:
    The amendment would provide an additional 13 weeks of temporary extended unemployment benefits for those who exhausted their regular benefits in any State with an insured unemployment rate of at least 4%. Provides for $8 billion in Special Reed Act transfers.

    Tax Benefits for Reconstruction of New York City:
    The Work Opportunity Tax Credit would be expanded and targeted to include certain employees in New York City – for employers with 200 or fewer employees and individuals working in or relocated from the Liberty Zone as a targeted group eligible for a modified WOTC. (40% on first 6,000; allow against AMT) (sunset 12/31/03)

    The amendment also provides 30% bonus depreciation for property placed in service in the Liberty Zone, $8 billion in tax exempt private activity bonds for rebuilding the portion of the City damaged in the 9/11/01 terrorist attack, allows a total of $9 billion in advance refunding of tax exempt bonds, increases Section 179 expensing to $35,000, allows involuntarily converted properties to be replaced over 5 years, and provides 5-year life for leasehold improvements in the Liberty Zone.

    Miscellaneous and Technical Provisions:
    – The amendment would allow form 1099 to be provided electronically
    – Would reverse the Supreme Court’s decision in Gitilitz v. Commissioner (relating to subchapter S corporations)
    – Limit use of non-accrual experience method of accounting to amount to be received for the performance of qualified professional services.
    – Exclusion for foster care payments to apply to payments by qualified placement agencies
    – Temporary increase in the highest specified percentage applied to the interest rate used in determining additional required contributions to defined benefit pension plans and PBGC variable rate premiums
    – Above-the-line deduction for teacher classroom expenses capped at $250 annually for 2002 and 2003

Extends the following expiring provisions:
– Treatment of nonrefundable personal credits under the individual alternative minimum tax.
– Tax credit for electric vehicles
– Tax credit for electricity production from alternative energy sources
– Work opportunity tax credit
– Welfare-to-work tax credit
– Deductions for qualified clean-fuel vehicle property and qualified clean-fuel refueling property
– Suspension of 100 percent-of- net-income limitation on percentage depletion for oil and gas from marginal wells
– Authority to issue qualified zone academy bonds
– Temporary increase in limit on cover of rum excise tax revenues to Puerto Rico and the Virgin Islands
– Tax on failure to comply with mental health parity requirements applicable to group health plans
– Suspension of section 809 related to the reduction in policyholder dividends for mutual life insurance companies
– Archer medical savings accounts
– Accelerated depreciation and employment tax credit for incentives on tribal lands
– Temporary Assistance for Needy Families (TANF) supplemental grants and contingency fund.