Key differences in Senate, House versions of stimulus package by the Committee on Ways and Means Republicans

8/14/2019 Key differences in Senate, House versions of stimulus package by the Committee on Ways and Means Republicans

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Key Differences Between House & Senate

Stimulus BillsThe following are key differences, within our jurisdiction, between the stimulus bill passed by the House

and the Nelson-Collinssubstitute to the stimulus bill expected to be passed by the Senate today. Please feel free to call us with

any questions.Major provisions in the Senate bill but not the House bill:Individual Taxation

AMT patch for 2009. (Costs $69.8b / 11) Allow computer technology and equipment as qualified higher education expense for 2009

and 2010. (Costs $6m /11) Temporary above the line deduction for interest expenses and state taxes on purchasing

new automobiles. (Costs$10.5b / 11)

Business Taxation Cancellation of indebtedness income spread over the eight years following year of

cancellation, instead of immediate recognition. (Costs $26.2b / 3, $813m / 11) Note that a provision in the Senate Finance Committee-reportedbill providing a five-year

carryback (instead of one) for general business credits for 2008 and 2009 and allowingsuch credits to fully offset federal tax liability will be deleted by Collins-Snow(the Househad no such provision, either).

Extends and modifies new markets tax credit. (Costs $1b / 11) Election to accelerate AMT and research credits in lieu of bonus depreciation. (Costs

$805m / 11) Temporarily increases section 1202 small business capital gains exclusion to 75%. (Costs

$829m / 11) Temporary cut in the built-in gains holding period for S corporations to seven years from

10 years. (Costs $415m / 11) Broadband Internet access tax credit. (Costs $110m / 11) Require TARP recipients paying certain bonuses to return TARP funds or pay excise tax.

(Costs $3.2b / 10) Acceleration of low-income housing credits and eliminating reduction in basis for receipt

of certain federal grants for determining credit. (Costs $1.7b / 11)

Energy Credit for investment in advanced energy property. (Costs $1.4b / 11) Election to expense manufacturing facilities for plug-in vehicles. (Costs $1.8b / 11) Modification of credits for alternative motor vehicles and qualified plug-in electric drive

vehicles. (Costs $94m / 11)

Five year depreciation for smart meters purchased before 2011. (Costs $22m / 11)

Bonds Modifies speed requirement for high-speed rail bonds. (Costs $288m / 11) Expands Industrial Development Bonds. (Costs $203m / 11)

Health Provides a one-year extension through 2010 of the Qualified Individual (QI) program,

which helps low-income Medicare beneficiaries with their Part B premiums. (Costs$562m)


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Temporary Assistance for Needy Families (TANF) and Unemployment

Waives interest on Federal loans to state unemployment benefit programs through CY2010. (Costs $1.1b / 11)

Extends TANF supplemental grants through FY 2010. (Costs $319m / 11) Allows States to spend TANF carryover funds on noncash benefits. (No long-run cost) Appropriates additional $400 million for Social Services Block Grant funding. (Costs

$400m / 11) Excludes up to $2,400 of unemployment insurance benefits from 2009 gross income.

(Costs $4.7b / 11)Trade

Extends current trade adjustment assistance program (placeholder for expansion). (Costs$108m / 11)

Prohibits collection of certain payments made under Continued Dumping and SubsidyOffset Act (Byrd Amendment) disbursements on imports from Canada and Mexico. (Costs$90m / 11)

Major provisions in the House bill but not the Senate bill: Grants to States for low-income housing in lieu of low-income housing credit 2009

allocations. (2009 outlay of $3b, largely offset over 11 years by revenue increase of $2.9b) Grants for specified energy property in lieu of tax credits (2009 2011 outlay of $158m;

largely offset by increased 2009-2016revenue of $153m) Medicare Provisions: Long-Term Care Hospital earmarks and the delay of hospice and

Indirect Medical Education regulations. GAO study of economic and employment effects of bill.

Similar provisions with important differences:Individual Taxation

Making Work Pay Credit: House costs $145.3b / 11. Senate reduces the credit by amounts

paid by SSA, Railroad Retirement and VA, and also phases-out the credit at lower AdjustedGross Income level, costs $139.4b / 11.

Refundable Child Tax Credit: House temporarily reduces earnings threshold to $0, costs$18.3b / 11; Senate temporarily reduces earnings threshold to $8100, costs $7.2b / 11.

American Opportunity Tax Credit: House 40% of the credit is refundable, costs $3.5b / 11;Senate 30% of the credit is refundable, costs$2.7b / 11.

Extension of homebuyer credit: House waives repayment requirement unless home isresold within 36 months, costs $2,562 / 11; Senate waives repayment requirement unlesshome is resold within 24 months, increases credit to $15,000, eliminates the income phase-out,and extends the credit through 2009, costs $35.5b /11.

Business Taxation 3% withholding on government contracts: House permanently repeals, costs $10.9b / 11;

Senate has 1-year delay, costs $291m / 11. Extension of Net Operating Loss carryback period to 5 years: House imposes a 10% haircut,

costs $54b / 2, $15b / 11; Senate has no haircut, costs $67.5b /2,$19.5b / 11.Energy

Section 25C investment tax credit for improving energy efficiency of existing homes.House costs $4.3b /11; Senateimposes stricter qualification standards, costs $1.9b / 11.

Bonds


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School construction bonds: House authorizes $22b in bonds, costs $9.9b;Senate authorizes$10b in bonds, costs $4.5b / 11.

Recovery Zone Bonds: House authorizes $25b in bonds, gives deeper subsidy to issuer,costs $6b / 11; Senate authorizes $15b in bonds, costs $3b / 11.

Taxable Bond option: House permanently gives state and local government issuers theability to issue taxable bonds, costs $18.3b / 11; Senate provides two years in which issuercan issue taxable bonds, costs $4.5b / 11.

Health COBRA: House expands eligibility and duration and provides a 65% subsidy of premiums

for 12 months, costs $30.3b; Senate subsidizes premiums at 50 percent for 12 months anddoes not expand eligibility or duration to the pre-Medicare population or to those whohave been with an employer for at least 10 years, costs $ 20b.

Health IT: Senate expands the list of providers who are eligible to receive HIT funding.Unlike the House bill, the Senate bill allows Critical Access Hospitals to qualify forfunding. The Senate bill begins to penalize providers who do not use HIT one year earlier(2015) than the House bill. Senate also provides $1 billion more ($3 billion total) than theHouse bill to the Office of the National Coordinator for Health Information Technology atHHS.

Comparative Effectiveness Research: The Senate language does not include House

language that would result in access restrictions to more expensive treatments.

Social Security, TANF and Unemployment Changes House provision paying SSI recipients another average monthly payment

(about $450 per, at a cost of $4b) to also cover disabled veterans, Social Securitybeneficiaries and those receiving Railroad Retirement and SSI benefits and by lowering thepayment amount ($300 per, at a cost of $17b)

New TANF emergency fund may provide States up to $8b over two years in House bill;only $3b over 2 years in Senate bill.

Documents

Key differences in Senate, House versions of stimulus package by the Committee on Ways and Means Republicans