To amend the Internal Revenue Code of 1986 to repeal the sunset of the Economic Growth and Tax Relief Reconciliation Act of 2001 and to repeal scheduled reductions in tax benefits provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Summary: Tax Relief Guarantee Act of 2004 - Repeals the current termination date (December 31, 2010) of the Economic Growth and Tax Relief Reconciliation Act of 2001.

Amends the Internal Revenue Code to repeal: (1) the reductions in the amount of the child income tax credit scheduled for taxable years 2005 through 2009 and to set the amount of such credit at $1,000 for all taxable years after 2004; (2) the reductions in the basic standard deduction percentage for married couples filing joint tax returns scheduled for taxable years 2005 through 2008; (3) the reductions in the percentage applicable to the maximum taxable income in the 15 percent tax bracket for married couples filing joint tax returns scheduled for taxable years 2005 through 2007; and (4) the reduction in the income threshold amount for ten percent income tax rate eligibility scheduled for taxable years 2005 through 2007.

Repeals the current termination date (December 31, 2008) of provisions in the Jobs and Growth Tax Relief Reconciliation Act of 2003 reducing capital gains tax rates and allowing the taxation of dividends at capital gain tax rates.

Amends the Internal Revenue Code to: (1) set the dollar limitation for the expense deduction for depreciable business assets at $100,000 for all taxable years after 2004 and to permanently increase to $400,000 the threshold amount for determining reductions in the dollar limitation of such deduction; (2) increase the percentage of the additional depreciation allowance for property acquired after May 5, 2003, from 30 to 50 percent.

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Tax Relief 
Guarantee Act of 2004''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. REPEAL OF SUNSET OF THE ECONOMIC GROWTH AND TAX RELIEF 
              RECONCILIATION ACT OF 2001.

    Title IX of the Economic Growth and Tax Relief Reconciliation Act 
of 2001 is hereby repealed.

SEC. 3. REPEAL OF SCHEDULED REDUCTIONS IN TAX BENEFITS PROVIDED BY THE 
              JOBS AND GROWTH TAX RELIEF RECONCILIATION ACT OF 2003.

    (a) Child Tax Credit.--Subsection (a) of section 24 (relating to 
child tax credit) is amended to read as follows:
    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year with 
respect to each qualifying child of the taxpayer an amount equal to 
$1,000.''
    (b) Marriage Penalty Relief in Standard Deduction.--
            (1) In general.--Paragraph (2) of section 63(c) (relating 
        to basic standard deduction) is amended to read as follows:
            ``(2) Basic standard deduction.--For purposes of paragraph 
        (1), the basic standard deduction is--
                    ``(A) 200 percent of the dollar amount in effect 
                under subparagraph (C) for the taxable year in the case 
                of--
                            ``(i) a joint return, or
                            ``(ii) a surviving spouse (as defined in 
                        section 2(a)),
                    ``(B) $4,400 in the case of a head of household (as 
                defined in section 2(b)), or
                    ``(C) $3,000 in any other case.''.
            (2) Conforming amendments.--
                    (A) Section 63(c)(4) is amended by striking 
                ``(2)(D)'' each place it occurs and inserting 
                ``(2)(C)''.
                    (B) Section 63(c) is amended by striking paragraph 
                (7).
    (c) Marriage Penalty Relief in 15-Percent Income Tax Bracket.--
Paragraph (8) of section 1(f) is amended to read as follows:
            ``(8) Elimination of marriage penalty in 15-percent 
        bracket.--With respect to taxable years beginning after 
        December 31, 2004, in prescribing the tables under paragraph 
        (1)--
                    ``(A) the maximum taxable income in the 15-percent 
                rate bracket in the table contained in subsection (a) 
                (and the minimum taxable income in the next higher 
                taxable income bracket in such table) shall be 200 
                percent of the maximum taxable income in the 15-percent 
                rate bracket in the table contained in subsection (c) 
                (after any other adjustment under this subsection), and
                    ``(B) the comparable taxable income amounts in the 
                table contained in subsection (d) shall be \1/2\ of the 
                amounts determined under subparagraph (A).''
    (d) 10-Percent Rate Bracket.--
            (1) In general.--Clause (i) of section 1(i)(1)(B) is 
        amended by striking ``($12,000 in the case of taxable years 
        beginning after December 31, 2004, and before January 1, 
        2008)''.
            (2) Inflation adjustment.--Subparagraph (C) of section 
        1(i)(1) is amended to read as follows:
                    ``(C) Inflation adjustment.--In prescribing the 
                tables under subsection (f) which apply with respect to 
                taxable years beginning in calendar years after 2003--
                            ``(i) the cost-of-living adjustment shall 
                        be determined under subsection (f)(3) by 
                        substituting `2002' for `1992' in subparagraph 
                        (B) thereof, and
                            ``(ii) the adjustments under clause (i) 
                        shall not apply to the amount referred to in 
                        subparagraph (B)(iii).
                If any amount after adjustment under the preceding 
                sentence is not a multiple of $50, such amount shall be 
                rounded to the next lowest multiple of $50.''
    (e) Permanent Reduction in Capital Gains Rates for Individuals and 
in Taxation of Dividends.--Section 303 of the Jobs and Growth Tax 
Relief Reconciliation Act of 2003 is hereby repealed.
    (f) Expensing Under Section 179.--
            (1) Paragraph (1) of section 179(b) is amended by striking 
        ``$25,000 ($100,000 in the case of taxable years beginning 
        after 2002 and before 2006)'' and inserting ``$100,000''.
            (2) Paragraph (2) of section 179(b) is amended by striking 
        ``$200,000 ($400,000 in the case of taxable years beginning 
        after 2002 and before 2006)'' and inserting ``$400,000''.
    (g) Bonus Depreciation.--
            (1) In general.--So much of section 168(k) as precedes 
        paragraph (2) is amended to read as follows:
    ``(k) Special Allowance for Certain Property Acquired After May 5, 
2003.--
            ``(1) Additional allowance.--In the case of any qualified 
        property--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                property is placed in service shall include an 
                allowance equal to 50 percent of the adjusted basis of 
                the qualified property, and
                    ``(B) the adjusted basis of the qualified property 
                shall be reduced by the amount of such deduction before 
                computing the amount otherwise allowable as a 
                depreciation deduction under this chapter for such 
                taxable year and any subsequent taxable year.''
            (2) Conforming amendments.--
                    (A) Subparagraph (A) of section 168(k)(2) is 
                amended by striking clauses (ii), (iii), and (iv) and 
                inserting the following new clauses:
                            ``(ii) the original use of which commences 
                        with the taxpayer after May 5, 2003, and
                            ``(iii) which is acquired by the taxpayer 
                        after May 5, 2003, but only if no written 
                        binding contract for the acquisition was in 
                        effect before May 6, 2003.''
                    (B) Paragraph (2) of section 168(k) is amended by 
                striking subparagraph (B) and by redesignating 
                subparagraphs (C), (D), (E), and (F) as subparagraphs 
                (B), (C), (D), and (E), respectively.
                    (C) Clause (i) of section 168(k)(2)(C), as so 
                redesignated, is amended by striking ``after September 
                10, 2001, and before January 1, 2005'' and inserting 
                ``after May 5, 2003''.
                    (D) Clause (ii) of section 168(k)(2)(C), as so 
                redesignated, is amended by striking ``September 10, 
                2001'' and inserting ``May 5, 2003''.
                    (E) Clause (i) of section 168(k)(2)(D), as so 
                redesignated, is amended by striking ``$4,600'' and 
                inserting ``$7,650''.
                    (F) Paragraph (4) of section 168(k) is amended to 
                read as follows:
            ``(4) Election of 30-percent bonus deprecation.--If a 
        taxpayer makes an election under this subparagraph with respect 
        to any class of property for any taxable year--
                    ``(A) paragraph (1)(A) shall be applied by 
                substituting `30 percent' for `50 percent' with respect 
                to all property in such class placed in service during 
                such taxable year, and
                    ``(B) subparagraph (E)(i) shall be applied by 
                substituting `$4,600' for `$7,650' with respect to 
                automobiles (if any) which are part of such class.''
    (h) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years beginning after December 31, 2004.
            (2) Bonus depreciation.--The amendments made by subsection 
        (g) shall apply to property placed in service after May 5, 
        2003, in taxable years ending after such date.