**LIST OF EXPIRING TAX PROVISIONS,1998-2007**
Prepared by the Staff

of the 

JOINT COMMITTEE ON TAXATION

July 9, 1998

JCX-53R-98

**CONTENTS**

**INTRODUCTION**

**EXPIRING TAX PROVISIONS, 1998-2007**

	A.	Provisions Expiring in 1998	 

	B.	Provisions Expiring in 1999	 

	C.	Provisions Expiring in 2000	 

	D.	Provisions Expiring in 2001	 

	E.	Provisions Expiring in 2002	 

	F.	Provisions Expiring in 2003	 

	G.	Provisions Expiring in 2004	

	H.	Provisions Expiring in 2005	 

	I.	Provisions Expiring in 2007	

**INTRODUCTION**

	This document,(1) prepared by the staff of the Joint Committee on Taxation, provides a listingof tax provisions (with Code sections) currently scheduled to expire in 1998-2007.  The listingreflects tax law provisions in effect as of the enactment of H.R. 2400 (P.L. 105-178), whichextended the Highway Trust Fund excise taxes.

	This document is a corrected version of JCX-53-98 and includes four additional expiringprovisions.  See items A.6., A.7., B.4., and E.1.

**EXPIRING TAX PROVISIONS, 1998-2007**

**A.  Provisions Expiring in 1998**
**Provisions (Code section)****Expiration Date**1.	Nonconventional fuels tax credit for fuelfrom biomass and coal -- facilities placedin service pursuant to binding contractsbefore January 1, 1997 (sec. 29)6/30/982.	Tax credit for research andexperimentation expenses (sec. 41)6/30/983.	Work opportunity tax credit (sec. 51)6/30/984.	Deduction for contributions of qualifiedappreciated publicly traded stock toprivate foundations (sec. 170(e)(5))6/30/985.	Moratorium on regulations regardingemployment taxes of limited partners(sec. 1402(a)(13) and sec. 935 of theTaxpayer Relief Act of 1997 ("1997Act"))6/30/986.	Disclosure of tax return information tocarry out administration of incomecontingent repayment of student loans(sec. 6103(l)(13))9/30/987.	Temporary increase in limit on cover overof rum excise tax revenues (from $10.50to $11.30 per proof gallon) to Puerto Ricoand the Virgin Islands (sec. 7652(f))9/30/988.	Waiver of penalty for failure of smallbusinesses to use Electronic FundsTransfer Payment System ("EFTPS")12/31/98(2)9.	Exceptions under subpart F for activefinancing income (sec. 954)12/31/98(3)
**B.  Provisions Expiring in 1999**
**Provision (Code section)****Expiration Date**1.	Welfare-to-work tax credit (sec. 51A)********4/30/992.	Tax credit for electricity production fromwind and closed-loop biomass -- facilitiesplaced in service (sec. 45(c))6/30/993.	Suspension of 100 percent-of-net-incomelimitation on percentage depletion for oiland gas from marginal wells (sec. 613A)12/31/994.	Qualified zone academy bonds (sec.1397E)12/31/99
**C.  Provisions Expiring in 2000**
**Provision (Code section)****Expiration Date**1.	Exclusion for employer-providededucational assistance (sec. 127)5/31/002.	Enhanced deduction for corporatecontributions of computer equipment toelementary and secondary schools (sec.170(e)(6))12/31/00(4)3.	Expensing of "Brownfields"environmental remediation costs (sec.198)12/31/004.	Establishment of Medical SavingsAccounts ("MSAs") (sec. 220)12/31/00(5)5.	Income averaging for farmers (sec. 1301)12/31/006.	Tax credit for first-time D.C. homebuyers(sec. 1400C)12/31/00
**D.  Provisions Expiring in 2001**
**Provision (Code section)****Expiration Date**1.	Tax on failure to comply with mentalhealth parity requirements applicable togroup health plans (sec. 9812)9/29/012.	Tax credit for non-special needs adoption(sec. 23(d)(2)(B))12/31/013.	Exclusion for employer-providedadoption assistance (sec. 137(f))12/31/014.	Tax credit for qualified electric vehicles -credit phased out for vehicles placed inservice after 12/31/01; credit is reducedby 25 percent in 2002, 50 percent in 2003,and 75 percent in 2004; no credit after2004 (sec. 30)12/31/015.	Deduction for clean-fuel vehicles andrefueling property (sec. 179A)12/31/01
**E.  Provisions Expiring in 2002**
**Provision (Code section)****Expiration Date**1.	Combined employment tax reportingdemonstration project (sec. 976 of the1997 Act)8/5/022.	Tax incentives for investment in theDistrict of Columbia ("D.C."):	a.  Designation of D.C. Enterprise Zone;employment tax credit; additionalexpensing (sec. 1400)12/31/02	b.  Tax-exempt D.C. economicdevelopment bonds (sec. 1400A)12/31/02	c.  Zero percent capital gains rate forinvestment in D.C. for property acquiredby 12/31/02; for gains through 12/31/07(sec. 1400B)12/31/023.	Luxury excise tax on passenger highwayvehicles (sec. 4001)12/31/02(6)
**F.  Provisions Expiring in 2003**
**Provision (Code section)****Expiration Date**1.	Disclosure of tax return information foradministration of certain veteransprograms (sec. 6103(l)(7)(D)(viii))9/30/032.	IRS user fees for letter rulings,determination letters, advance pricingagreements, and similar requests (sec.10511 of the Revenue Act of 1987, as lastamended by sec. 2 of P.L. 104-117)9/30/033.	Indian employment tax credit (sec. 45A)12/31/034.	Accelerated depreciation for businessproperty on an Indian reservation (sec.168(j))12/31/03
**G.  Provisions Expiring in 2004**
**Provision (Code section)****Expiration Date**1.	Empowerment zone tax incentives(employment tax credit, additionalexpensing, tax-exempt bonds) generally(secs. 1391, 1394, and 1396)
12/31/04(7)

**H.  Provisions Expiring in 2005**
**Provision (Code section)****Expiration Date**1.	Leaking Underground Storage Tank TrustFund excise tax (sec. 4081(d)(3))3/31/052. 	Highway Trust Fund excise tax rates:	a.  All but 4.3 cents per gallon of the taxeson highway diesel, gasoline, and specialmotor fuels (secs. 4041(a) and4081(d)(1))9/30/05	b.  Tax on retail sale of heavy highwayvehicles (sec. 4051(c))9/30/05	c.  Tax on heavy truck tires (sec. 4071(d))9/30/053.	Aquatic Resources Trust Fund and Landand Water Conservation Fund excise taxon motorboat gasoline and special fuels(secs. 4041(a) and 4081(a)(1)) -- all but4.3 cents per gallon9/30/054.	Puerto Rico economic activity tax credit(sec. 30A)12/31/055.	Puerto Rico and possessions tax credit(sec. 936)12/31/05
**I.  Provisions Expiring in 2007(8)**
**Provision (Code section)****Expiration Date**1.	Airport and Airway Trust Fund excisetaxes:	a.  All but 4.3 cents per gallon of taxes onnoncommercial aviation jet fuel andnoncommercial aviation gasoline (secs.4041(c), 4081(d), and 4091)9/30/07	b.  Air passenger ticket tax (sec. 4261)9/30/07	c.  International departure and arrival tax(sec. 4261(c))9/30/07	d.  Air cargo tax (sec. 4271)9/30/072.	Reduced excise tax rates for alcohol fuelsmixtures (secs. 4041(b)(2) and (k),4081(c), and 4091(c))9/30/07(9)3.	Alcohol fuels tax credit (sec. 40)12/31/07(10)4.	FUTA surtax of 0.2 percent (sec. 1301)12/31/075.	New empowerment zone tax incentives,for zones added by the 1997 Act:	a.  Empowerment zone employment taxcredit (sec. 1396)12/31/07	b.  Empowerment zone expensing; tax-exempt bonds (secs. 1391 and 1394)10 years afterzone designation
1.   This document may be cited as follows: Joint Committee on Taxation, *List of ExpiringTax Provisions, 1998-2007* (JCX-53R-98), July 9, 1998.
2.   The Internal Revenue Service has administratively extended the waiver throughDecember 31, 1998.  IRS Notice 98-30, 1998-22 IRB 9, June 1, 1998.  The previous waiverexpired June 30, 1998; see section 931 of the 1997 Act.
3.   The President canceled this provision in 1997 pursuant to the Line Item Veto Act.  OnJune 25, 1998, the U.S. Supreme Court held that the cancellation procedures set forth in the LineItem Veto Act are unconstitutional.  Clinton v. City of New York, 81 AFTR2d Par. 98-837, No.97-1374 (June 25, 1998).
4.   A technical correction is included in the conference agreement on H.R. 2676 to reflectthis intended expiration date in the 1997 Act; the statute erroneously indicates an expiration dateof December 31, 1999.
5.   The ability of individuals to establish MSAs may expire earlier than December 31,2000, if certain numerical limits on the number of MSAs established are exceeded.
6.   The luxury excise tax on automobiles phases down as follows: 7 percent in 1998, 6percent in 1999, 5 percent in 2000, 4 percent in 2001, and 3 percent in 2002.
7.   This expiration date does not apply to new empowerment zones added by the 1997 Act,which expire later.  See, I. "Provisions Expiring in 2007," below.
8.   There are no expiring provisions in calendar year 2006.
9.   The reduced rates expire earlier if the tax rate on gasoline and other motor fuels dropsto 4.3 cents per gallon, which is currently scheduled to occur after September 30, 2005, unlessthe Highway Trust Fund tax rates are extended beyond that date.
10.   The reduced rates expire earlier if the tax rate on gasoline and other motor fuels dropsto 4.3 cents per gallon, which is currently scheduled to occur after September 30, 2005, unlessthe Highway Trust Fund tax rates are extended beyond that date.