American Recovery & Reinvestment Act of 2009 - Mini Course (Course Id 267)

Taxes - Taxes for Course Id 267

This tax CPE course focuses on key tax provisions enacted under the $800 billion American Recovery and Reinvestment Act of 2009 by analyzing tax issues affecting individuals and businesses contained in this first installment of President Obama’s massive economic and recovery agenda. Individual provisions included a new "making work pay” tax credit, an AMT patch, a sales tax deduction, tax credits for education and first-time homebuyers and enhanced tax benefits for energy efficient improvements to homes. Business provisions included the treatment of such issues as extended bonus depreciation, a limited five-year net operating loss carryback period, small business expensing and capital gains, estimated tax payments, and COBRA coverage. In addition, the course discusses new energy incentives and changes made to former energy regulations.

NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents - 267

As a result of studying the assigned materials, you should be able to meet the objectives listed below.

      At the start of the materials, participants should identify the following topics for study:

* “Making Work Pay” Tax Credit
* “American Opportunity” Education Tax Credit
* Modified Homebuyer Credit
* AMT Patch for Individuals
* Extension of Bonus Depreciation
* Extension of Enhanced Small Business Expensing
* 5-Year Carryback of Net Operating Losses
* Delayed Recognition of Certain Cancellation of Debt Income
* Tax Credits for Energy-Efficient Improvements to Existing Homes
* Advanced Energy Investment Credit

1. Recognize the individual tax provisions of the American Recovery and Reinvestment Act of 2009 (“Act”) by:
a. Identifying the “Making Work Pay’ tax credit, the economic recovery payment to Social Security and SSI recipients and the EITC;
b. Citing Act modifications to the 2008 Stabilization Act child tax credit provisions, the Hope credit (renamed the American Opportunity tax credit), tuition saving accounts, the homebuyer tax credit and the low-income housing tax credit; and
c. Determining how to account for and compute 2009 unemployment compensation taxation, allowable qualified motor vehicle deductions, and 2009 individual AMT exemption amounts.
2. Identify the business tax provisions of the American Recovery and Reinvestment Act of 2009 (“Act”) by:
a. Citing changes to the bonus depreciation provision (§168(k)), listing dollar caps for vehicles, and identifying a special election for corporations;
b. Recognizing extended §179 expensing, revised net operating loss provisions; estimated tax payments for small businesses, category additions to the work opportunity credit, and employer-provided transit and vanpool benefits under the Act;
c. Determining the impact of Congress's legislative response to Notice 2008-83, the new cancellation of indebtedness income election, the §1202 small business stock percentage exclusion, the reduced holding period for §1374 assets and the new markets tax credit; and
d. Recognizing the new COBRA requirements, delayed implementation 3% government contractor withholding and the expanded definition of industrial development bonds.
3. Identify the energy provisions of the American Recovery and Reinvestment Act of 2009 (“Act”) by:
a. Specifying the tax benefits, limitations, and requirements of credits for energy property (specifically including solar electric and water heating property), alternative fuel refueling property, electric drive motor vehicles, renewable energy production, and advanced energy manufacturing projects.
b. Determining when an investment tax credit can be taken in lieu of the production tax credit; and
c. Locating the differences between prior law and the Act's expanded program for clean renewable energy bonds and qualified energy conservation bonds.

Chapter 1 - American Recovery & Reinvestment Act of 2009

American Recovery & Reinvestment Act of 2009

Individual Provisions

“Making Work Pay” Tax Credit – New §36A

Economic Recovery Payments – Act §2201

Increase in Earned Income Tax Credit - §32

Increase Eligibility for the Refundable Portion of Child Credit - §24

“American Opportunity” Education Tax Credit - §25A

Computer Technology & Equipment as Education Expense - §529

Modified Homebuyer Credit - §36

Temporary Suspension of Taxation of Unemployment Benefits - §85

Sales Tax Deduction for Qualified Vehicles - §63 & §164

AMT Patch for Individuals - §26 & §56

Election to Substitute Grants for Credit Allocations - §42

Business Provisions

Extension of Bonus Depreciation - §168(k)

Extension of Enhanced Small Business Expensing - §179

5-Year Carryback of Net Operating Losses - §172

Estimated Tax Payments - §6654

Modification of Work Opportunity Tax Credit - §51

Transportation Fringe Benefit Parity- §132

Repeal of Treasury Notice 2008-83 & Code Modification - §382

Delayed Recognition of Certain Cancellation of Debt Income - §108

Qualified Small Business Capital Gains - §1202

Reduction of S Corporation Built-In Gain Period - §1374

New Markets Tax Credit - §45D

Delay of 3% Withholding on Government Contractors - §3402(t)

COBRA Coverage - §4980B

Industrial Development Bonds - §144(a)

Energy Provisions

Tax Credits for Energy-Efficient Improvements to Existing Homes - §25C

Residential Energy Efficient Property - §25D

Extension of Renewable Energy Production Tax Credit - §45

Investment Tax Credit In Lieu Of the Production Tax Credit - §45 & §48

Tax Credits for Alternative Fuel Refueling Property- §30C

Advanced Energy Investment Credit - §48C

Clean Renewable Energy Bonds (“CREBs”) - §54C

Qualified Energy Conservation Bonds §54D

Glossary