General Explanations of the Administration's Fiscal Year 2014 Revenue Proposals, April 2013

General Explanations of the Administration's Fiscal Year 2014 Revenue Proposals, April 2013
Title:
General Explanations of the Administration's Fiscal Year 2014 Revenue Proposals, April 2013
Agency Publisher: 
Format:
Paperback
USA Price: 
$37.50
$18.75
Display Foreign Price
Stock:
In stock
GPO Stock Number:
052-070-07656-9
ISBN:
9780160918254
Description

Each February when the President releases his proposed Federal Budget for the following year, Treasury releases the General Explanations of the Administration's Revenue Proposals. Known as the “Green Book” (or Greenbook), the document provides a concise explanation of each of the Administration’s Fiscal Year 2014 tax proposals for raising revenue for the Government. This annual document clearly recaps each proposed change, reviewing the provisions in the Current Law, outlining the Administration's Reasons for Change to the law, and explaining the Proposal for the new law. Ideal for anyone wanting a clear summary of the Administration's policies and proposed tax law changes.

While many of the proposals included in the FY 2014 budget are either the same or modified versions of proposals included in the Administration’s FY 2013 budget, there are nearly 50 new revenue proposals in the 2014 budget, including closing loopholes and changing tax credits and incentives. Following are a few of the President's new revenue proposals that are explained in the Treasury FY2014 Green Book:

  • Extending employment tax credits for hiring veterans;
  • Requiring derivatives contracts to be marked to market and taxed as ordinary income on an annual basis;
  • Repealing the domestic manufacturing deduction for oil and natural gas production;
  • Establishing multiple incentives for investment in infrastructure, including “America Fast Forward” Bonds and increasing caps on other bonds;
  • Taxing carried interest as ordinary income;
  • Returning the estate tax to 2009 levels, modifying the recent estate tax exclusions and rates signed into law earlier this year under the American Taxpayer Relief Act;
  • Prohibiting individuals from accumulating more than $3 million in tax-preferred retirement accounts; and
  • Capping the benefit of certain deductions (such as a charitable contribution deduction) to 28 percent for taxpayers at or above the 33% marginal tax rate.

NOTE: NO FURTHER DISCOUNTS FOR ALREADY REDUCED SALE ITEMS.

Table of Contents

Table of Contents:

ADJUSTMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT (BBEDCA) BASELINE .....1

Permanently Extend Increased Refundability of the Child Tax Credit ............................... 2
Permanently Extend Earned Income Tax Credit (EITC) for Larger Families and Married
Couples ................................................................................................................... 4
Permanently Extend the American Opportunity Tax Credit (AOTC) ................................. 6

RESERVE FOR REVENUE-NEUTRAL BUSINESS TAX REFORM.............9
INCENTIVES FOR MANUFACTURING, RESEARCH, CLEAN ENERGY, AND INSOURCING AND CREATING JOBS
............................................................................. 10

Provide Tax Incentives for Locating Jobs and Business Activity in the United States and Remove Tax Deductions for Shipping Jobs Overseas ........................................... 10
Provide New Manufacturing Communities Tax Credit .................................................... 12
Enhance and Make Permanent the Research and Experimentation (R&E) Tax Credit ... 13
Extend Certain Employment Tax Credits Including Incentives for Hiring Veterans ....... 14
Provide a Tax Credit for the Production of Advanced Technology Vehicles................... 16
Provide a Tax Credit for Medium- and Heavy-Duty Alternative-Fuel Commercial Vehicles ...................................................................................... 18
Modify and Permanently Extend Renewable Electricity Production Tax Credit ............. 19
Modify and Permanently Extend the Deduction for Energy-Efficient Commercial Building Property.................................................................................................. 21

TAX RELIEF FOR SMALL BUSINESS............................................................................. 23
Extend Increased Expensing for Small Business.............................................................. 23
Eliminate Capital Gains Taxation on Investments in Small Business Stock.................... 25
Double the Amount of Expensed Start-Up Expenditures .................................................. 27
Expand and Simplify the Tax Credit Provided to Qualified Small Employers for Non-
Elective Contributions to Employee Health Insurance ......................................... 29

INCENTIVES TO PROMOTE REGIONAL GROWTH................................................... 31
Extend and Modify the New Markets Tax Credit (NMTC)............................................... 31
Restructure Assistance to New York City, Provide Tax Incentives for Transportation Infrastructure
........................................................................................................ 32
Modify Tax-Exempt Bonds for Indian Tribal Governments ............................................. 34
Reform and Expand the Low-Income Housing Tax Credit .................................................. 37
Allow States to Convert Private Activity Bond Volume Cap into Low-Income Housing Tax Credits (LIHTCs) that the State can Allocate ....................................................... 37
Encourage Mixed Income Occupancy by Allowing Low-Income Housing Tax Credit (LIHTC)-Supported Projects to Elect a Criterion Employing a Restriction on Average Income .................................................................................................... 39
Change Formulas for 70 Percent PV and 30 Percent PV Low-Income Housing Tax Credits (LIHTCs)
.................................................................................................. 41
Add Preservation of Federally Assisted Affordable Housing to Allocation Criteria ....... 43
Make the Low-Income Housing Tax Credit (LIHTC) Beneficial to Real Estate Investment Trusts (REITs)
....................................................................................................... 44

REFORM U.S. INTERNATIONAL TAX SYSTEM........................................................... 46
Defer Deduction of Interest Expense Related to Deferred Income of Foreign Subsidiaries ..................... 46
Determine the Foreign Tax Credit on a Pooling Basis .................................................... 48
Tax Currently Excess Returns Associated with Transfers of Intangibles Offshore.......... 49
Limit Shifting of Income Through Intangible Property Transfers .................................... 51
Disallow the Deduction for Non-Taxed Reinsurance Premiums Paid to Affiliates.......... 52
Limit Earnings Stripping By Expatriated Entities ............................................................ 53
Modify Tax Rules for Dual Capacity Taxpayers ............................................................... 55
Tax Gain from the Sale of a Partnership Interest on Look-Through Basis ...................... 57
Prevent Use of Leveraged Distributions from Related Foreign Corporations to Avoid Dividend Treatment .............. 59
Extend Section 338(h)(16) to Certain Asset Acquisitions................................................. 60
Remove Foreign Taxes From a Section 902 Corporation’s Foreign Tax Pool When Earnings Are Eliminated ..................... 61

REFORM TREATMENT OF FINANCIAL AND INSURANCE INDUSTRY INSTITUTIONS AND PRODUCTS.......... 62
Require that Derivative Contracts be Marked to Market with Resulting Gain or Loss Treated as Ordinary.................... 62
Modify Rules that Apply to Sales of Life Insurance Contracts......................................... 64
Modify Proration Rules for Life Insurance Company General and Separate Accounts .. 65
Expand Pro Rata Interest Expense Disallowance for Corporate-Owned Life Insurance 67

ELIMINATE FOSSIL FUEL PREFERENCES.................................................................. 69
Eliminate Oil and Gas Preferences....................................................................................... 69
Repeal Enhanced Oil Recovery (EOR) Credit.................................................................. 69
Repeal Credit for Oil and Gas Produced from Marginal Wells ....................................... 70
Repeal Expensing of Intangible Drilling Costs ................................................................ 71
Repeal Deduction for Tertiary Injectants......................................................................... 73
Repeal Exception to Passive Loss Limitation for Working Interests in Oil and Natural
Gas Properties...................................................................................................... 74
Repeal Percentage Depletion for Oil and Natural Gas Wells .......................................... 75
Repeal Domestic Manufacturing Deduction for Oil and Natural Gas Production .......... 77
Increase Geological and Geophysical Amortization Period for Independent Producers to
Seven Years........................................................................................................... 78
Eliminate Coal Preferences................................................................................................... 79
Repeal Expensing of Exploration and Development Costs ............................................... 79
Repeal Percentage Depletion for Hard Mineral Fossil Fuels .......................................... 81
Repeal Capital Gains Treatment for Royalties ................................................................. 83
Repeal Domestic Manufacturing Deduction for the Production of Coal and Other Hard
Mineral Fossil Fuels............................................................................................. 84

OTHER REVENUE CHANGES AND LOOPHOLE CLOSERS...................................... 86
Repeal the Excise Tax Credit for Distilled Spirits with Flavor and Wine Additives ........ 86
Repeal Last-In, First-Out (LIFO) Method of Accounting for Inventories ........................ 88
Repeal Lower-Of-Cost-or-Market (LCM) Inventory Accounting Method ........................ 89
Modify Depreciation Rules for General Aviation Passenger Aircraft.............................. 90
Repeal Gain Limitation for Dividends Received in Reorganization Exchanges .............. 91
Expand the Definition of Built-In Loss for Purposes of Partnership Loss Transfers....... 92
Extend Partnership Basis Limitation Rules to Nondeductible Expenditures .................... 93
Limit the Importation of Losses under Related Party Loss Limitation Rules ................... 94
Deny Deduction for Punitive Damages ............................................................................ 95
Eliminate Section 404(k) Employee Stock Ownership Plan (ESOP) Dividend Deduction for Large C Corporations............. 96

BUDGET PROPOSALS........................................................................................99

TAX RELIEF TO CREATE JOBS AND JUMPSTART GROWTH.............................. 100
Provide Small Businesses a Temporary 10-Percent Tax Credit for New Jobs and Wage Increases................................ 100
Provide Additional Tax Credits for Investment in Qualified Property Used in a Qualifying Advanced Energy Manufacturing Project............. 102
Designate Promise Zones ......................... 104

INCENTIVES FOR INVESTMENT IN INFRASTRUCTURE...................................... 108
Provide America Fast Forward Bonds and Expand Eligible Uses ................................ 108
Increase the Federal Subsidy Rate for America Fast Forward Bonds for School Construction........................... 110
Allow Current Refundings of State and Local Governmental Bonds ............................. 112
Repeal the $150 Million Non-hospital Bond Limitation on Qualified Section 501(c)(3) Bonds............................ 115
Increase National Limitation Amount for Qualified Highway or Surface Freight Transfer Facility Bonds ............. 116
Eliminate the Volume Cap for Private Activity Bonds for Water Infrastructure............ 117
Increase the 25-Percent Limit on Land Acquisition Restriction on Qualified Private Activity Bonds....................... 119
Allow More Flexible Research Arrangements for Purposes of the Private Business Use Limits...................................120
Repeal the Government Ownership Requirement for Certain Types of Exempt Facility Bonds................................... 122
Exempt Foreign Pension Funds from the Application of the Foreign Investment in Real Property Tax Act (FIRPTA)........ 123

TAX CUTS FOR FAMILIES AND INDIVIDUALS ......................................................... 124
Provide for Automatic Enrollment in Individual Retirement Accounts or Annuities (IRAs), Including a Small Employer Tax Credit, and Double the Tax Credit for Small Employer Plan Start-Up Costs......................... 124
Expand the Child and Dependent Care Tax Credit........................................................ 128
Extend Exclusion from Income for Cancellation of Certain Home Mortgage Debt....... 129
Provide Exclusion from Income for Student Loan Forgiveness for Students in Certain
Income-Based or Income-Contingent Repayment Programs Who Have Completed Payment Obligations................ 131
Provide Exclusion from Income for Student Loan Forgiveness and for Certain Scholarship Amounts for Participants in the Indian Health Service (IHS) Health Professions Programs......................................................................................... 132

UPPER-INCOME TAX PROVISIONS .............................................................................. 134
Reduce the Value of Certain Tax Expenditures .............................................................. 134
Implement the Buffett Rule by Imposing a New “Fair Share Tax” ................................ 136

MODIFY ESTATE AND GIFT TAX PROVISIONS....................................................... 138
Restore the Estate, Gift, and Generation-Skipping Transfer (GST) Tax Parameters in Effect in 2009........ 138
Require Consistency in Value for Transfer and Income Tax Purposes.......................... 140
Require a Minimum Term for Grantor Retained Annuity Trusts (GRATs) .................... 142
Limit Duration of Generation-Skipping Transfer (GST) Tax Exemption ....................... 143
Coordinate Certain Income and Transfer Tax Rules Applicable to Grantor Trusts ...... 145
Extend the Lien on Estate Tax Deferrals Provided Under Section 6166 of the Internal Revenue Code.............. 147
Clarify Generation-Skipping Transfer (GST) Tax Treatment of Health and Education Exclusion Trusts (HEETs)............. 148

REFORM TREATMENT OF FINANCIAL INDUSTRY INSTITUTIONS AND PRODUCTS.............. 149
Impose a Financial Crisis Responsibility Fee ................................................................ 149
Require Current Inclusion in Income of Accrued Market Discount and Limit the Accrual Amount for Distressed Debt....... 151
Require that the Cost Basis of Portfolio Stock That is a Covered Security Must be Determined Using an Average Basis Method.... 152

OTHER REVENUE CHANGES AND LOOPHOLE CLOSERS.................................... 153
Increase Oil Spill Liability Trust Fund Financing Rate by One Cent and Update the Law to Include Other Sources of Crudes......... 153
Reinstate and Extend Superfund Excise Taxes............................................................... 154
Reinstate Superfund Environmental Income Tax ............................................................ 155
Increase Tobacco Taxes and Index for Inflation ............................................................ 156
Make Unemployment Insurance Surtax Permanent ....................................................... 157
Provide Short-Term Tax Relief to Employers and Expand Federal Unemployment Tax Act (FUTA) Base.................... 158
Tax Carried (Profits) Interests as Ordinary Income...................................................... 159
Eliminate the Deduction for Contributions of Conservation Easements on Golf Courses............................................ 161
Restrict Deductions and Harmonize the Rules for Contributions of Conservation Easements for Historic Preservation........... 162
Require Non-Spouse Beneficiaries of Deceased Individual Retirement Account or Annuity (IRA) Owners and Retirement Plan Participants to Take Inherited Distributions Over No More than Five Years ........................................................................... 163
Limit the Total Accrual of Tax-Favored Retirement Benefits......................................... 165

REDUCE THE TAX GAP AND MAKE REFORMS....................................................... 168
Expand Information Reporting ........................................................................................... 168
Require Information Reporting for Private Separate Accounts of Life Insurance Companies.................. 168
Require a Certified Taxpayer Identification Number (TIN) from Contractors and Allow Certain Withholding............. 169
Modify Reporting of Tuition Expenses and Scholarships on Form 1098-T .................... 170
Improve Compliance by Businesses................................................................................... 172
Require Greater Electronic Filing of Returns ................................................................ 172
Make E-Filing Mandatory for Exempt Organizations .................................................... 174
Authorize the Department of the Treasury to Require Additional Information to be Included in Electronically Filed Form 5500 Annual Reports and Electronic Filing of Certain Other Employee Benefit Plan Reports ............................................... 175
Implement Standards Clarifying When Employee Leasing Companies Can Be Held Liable for Their Clients’ Federal Employment Taxes
....... 177
Increase Certainty with Respect to Worker Classification............................................. 179
Repeal Special Estimated Tax Payment Provision for Certain Insurance Companies .. 182
Strengthen Tax Administration........................................................................................... 184
Impose Liability on Shareholders Participating in “Intermediary Transaction Tax Shelters” to Collect Unpaid Corporate Income Taxes ....................................... 184
Increase Levy Authority for Payments to Medicare Providers with Delinquent Tax Debt ..................... 186
Implement a Program Integrity Statutory Cap Adjustment for Tax Administration...... 187
Streamline Audit and Adjustment Procedures for Large Partnerships .......................... 188
Revise Offer-in-Compromise Application Rules ............................................................. 191
Expand Internal Revenue Service (IRS) Access to Information in the National Directory of New Hires for Tax Administration Purposes
................ 192
Make Repeated Willful Failure to File a Tax Return a Felony ...................................... 193
Facilitate Tax Compliance with Local Jurisdictions ...................................................... 194
Extend Statute of Limitations where State Adjustment Affects Federal Tax Liability.... 195
Improve Investigative Disclosure Statute....................................................................... 197
Require Taxpayers Who Prepare Their Returns Electronically but File Their Returns on Paper to Print Their Returns with a 2-D Bar Code ....................... 198
Allow the Internal Revenue Service (IRS) to Absorb Credit and Debit Card Processing Fees for Certain Tax Payments............ 199
Extend IRS Math Error Authority in Certain Circumstances ......................................... 200
Impose a Penalty on Failure to Comply with Electronic Filing Requirements .............. 202
Restrict Access to the Death Master File (DMF)........................................................... 203
Provide Whistleblowers with Protection from Retaliation............................................. 204
Provide Stronger Protection from Improper Disclosure of Taxpayer Information in Whistleblower Actions................. 205
Index All Penalties to Inflation....................................................................................... 207
Extend Paid Preparer Earned Income Tax Credit (EITC) Due Diligence Requirements to the Child Tax Credit............. 208
Extend Internal Revenue Service (IRS) Authority to Require a Truncated Social Security Number (SSN) on Form W-2.......... 209
Add Tax Crimes to the Aggravated Identity Theft Statute ......................................... 211
Impose a Civil Penalty on Tax Identity Theft Crimes..................................................... 212

SIMPLIFY THE TAX SYSTEM......................................................................................... 213
Simplify the Rules for Claiming the Earned Income Tax Credit (EITC) for Workers Without Qualifying Children................. 213
Modify Adoption Credit to Allow Tribal Determination of Special Needs ..................... 214
Eliminate Minimum Required Distribution (MRD) Rules for Individual Retirement Account or Annuity (IRA)/Plan Balances of $75,000 or Less ............................ 215
Allow All Inherited Plan and Individual Retirement Account or Annuity (IRA) Balances to be Rolled Over Within 60 Days ........................ 217
Repeal Non-Qualified Preferred Stock (NQPS) Designation ......................................... 219
Repeal Preferential Dividend Rule for Publicly Offered Real Estate Investment Trusts (REITs)........................... 220
Reform Excise Tax Based on Investment Income of Private Foundations ..................... 222
Remove Bonding Requirements for Certain Taxpayers Subject to Federal Excise Taxes on Distilled Spirits, Wine and Beer ........................ 223
Simplify Arbitrage Investment Restrictions .................................................................... 225
Simplify Single-Family Housing Mortgage Bond Targeting Requirements ................... 227
Streamline Private Business Limits on Governmental Bonds ......................................... 228
Exclude Self-Constructed Assets of Small Taxpayers from the Uniform Capitalization (UNICAP) Rules ................ 229
Repeal Technical Terminations of Partnerships............................................................. 231
Repeal Anti-Churning Rules of Section 197 of the Internal Revenue Code ................... 232

USER FEE............................................................................................................................. 233
Reform Inland Waterways Funding ................................................................................ 233

OTHER INITIATIVES........................................................................................................ 234
Allow Offset of Federal Income Tax Refunds to Collect Delinquent State Income Taxes for Out-of-State Residents ............ 234
Authorize the Limited Sharing of Business Tax Return Information to Improve the Accuracy of Important Measures of the Economy ....................... 235
Eliminate Certain Reviews Conducted by the U.S. Treasury Inspector General for Tax Administration (TIGTA) ................ 237
Modify Indexing to Prevent Deflationary Adjustments ................................................... 238
Replace the Consumer Price Index (CPI) with the Chained CPI for Purposes of Indexing Tax Provisions for Inflation ......... 240

TABLES OF REVENUE ESTIMATES...........................................................241

Table 1: Revenue Estimates of Adjustments to the Balanced Budget and Emergency Deficit Control Act (BBEDCA) Baseline......... 241
Table 2: Revenue Estimates of Reserve for Revenue-Neutral Business Tax Reform Proposals..................... 242
Table 3: Revenue Estimates of FY 2014 Budget Proposals ........................................... 244

Audience

Government officials, policymakers, tax lawyers and accountants, students and teachers involved with financial policies, as well as members of the general public interested in the Federal Budget and new revenue proposals will all find this publication essential.

Product Details

Availability Details:
In Stock
USA Price:
$18.75
International Price:
$26.25
Publisher:
Treasury Dept.
Notes:
Although this book was ordered with an 052-070 stock number, it is not the Committee on Ways and Means Green Book. It is the Treasury Green Book 2013. It should not have been ordered as just "Green Book" and it should have had an 048 stock number.
Key Phrases:
  • Revenue Proposals
  • Government Accounting
  • Public Finance
  • Explanations of the Administrations Fiscal Year 2014 Revenue Proposals
  • Treasury Green Book 2013
  • Green Book From Treasury 2013
Weight:
1.6875
Quantity Price:
Discount
Cover:
Cloth
Unit of Issue (US):
1
Unit of Issue (Non-US):
1
Record Creation Date:
04/11/2013
Last Status Update:
01/31/2019
Back to Top