LIST OF EXPIRING FEDERAL TAX PROVISIONS 

2004-2014 

Prepared by the Staff 

of the 

JOINT COMMITTEE ON TAXATION 

December 23, 2004

JCX-71-04 
i 

CONTENTS 

Page

INTRODUCTION .......................................................................................................................... 1 

EXPIRING FEDERAL TAX PROVISIONS, 2004-2014.............................................................. 2 

A. Provisions Expiring in 2004................................................................................................ 2

B. Provisions Expiring in 2005................................................................................................ 3

C. Provisions Expiring in 2006................................................................................................ 7

D. Provisions Expiring in 2007.............................................................................................. 10 

E. Provisions Expiring in 2008.............................................................................................. 11 

F. Provisions Expiring in 2009.............................................................................................. 12 

G. Provisions Expiring in 2010.............................................................................................. 14 

H. Provisions Expiring in 2013.............................................................................................. 15 

I. Provisions Expiring in 2014.............................................................................................. 16 
1

INTRODUCTION 

This document,1

 prepared by the staff of the Joint Committee on Taxation, provides a 

listing of tax provisions (other than those providing time-limited transition relief after the repeal 

of an underlying rule) that are currently scheduled to expire in 2004-2014 (with references to the 

applicable section of the Internal Revenue Code of 1986 or other applicable law). For purposes 

of compiling this list, the staff of the Joint Committee on Taxation considers a provision to be 

expiring if, at some statutorily specified date in the future, the provision expires completely or 

reverts to the law in effect before the present-law version of the provision. 

 

1

 This document may be cited as follows: Joint Committee on Taxation, List of Expiring 

Federal Tax Provisions, 2004-2014 (JCX-71-04), December 23, 2004. 
2

EXPIRING FEDERAL TAX PROVISIONS, 2004-2014 

A. Provisions Expiring in 2004 

Provision (Code section)2

 Expiration Date 

 

1. Additional first-year depreciation 

allowance for qualifying property (sec. 

168(k)(2)(A)(iv)) 12/31/043

 

2. Enterprise communities designated in 1994 

(sec. 1391(d)(1)(A)(ii)) 12/31/044

 2

 All references are to the Internal Revenue Code of 1986, as amended, unless otherwise 

indicated. 

3

 An extension of the placed in service date of one year is provided for certain property 

with a recovery period of 10 years or longer, certain transportation property, and certain aircraft. 

4

 The provision may expire earlier with respect to an enterprise community if a State or 

local government provided for an expiration date in the nomination of an enterprise community 

or the appropriate Secretary revokes an enterprise community’s designation. 
3

B. Provisions Expiring in 2005 

Provision (Code section) Expiration Date 

 

1. Leaking underground storage tank trust 

fund excise tax (sec. 4081(d)(3)) 3/31/05 

2. Election to defer portion of net experience 

loss charges of certain multiemployer 

defined benefit pension plans ((sec. 

412(b)(7)(F)) 5 6/30/05 

 

3. Highway trust fund excise tax rates: 

 a. All but 4.3 cents per gallon of the taxes 

 on highway gasoline, diesel fuel, 

 kerosene, and special motor fuels 

 (secs. 4041(a) and 4081(d)(1))6

 b. Reduced rate of tax on partially exempt 

 methanol or ethanol fuel 

 (sec. 4041(m))7

 c. Tax on retail sale of heavy highway 

 vehicles (sec. 4051(c)) 

 d. Tax on heavy truck tires (sec. 4071(d)) 

 

 e. Annual use tax on heavy highway 

 vehicles (sec. 4481(f)) 

9/30/05 

9/30/05 

9/30/05 

9/30/05 

9/30/05 

 

4. Election to make reduced required 

contributions to certain defined benefit 

pension plans (sec. 412(l)(12))8

 12/27/05 

 5

 A corresponding provision is contained in section 302(b)(7)(F) of the Employee 

Retirement Income Security Act of 1974, as amended (“ERISA”). This provision also expires in 

2005. 

6

 The 4.3-cents-per-gallon rate is permanent. Gasoline and special motor fuels used in 

motorboats, and gasoline for the nonbusiness use of small engine outdoor power equipment, are 

first deposited in the highway trust fund and then transferred to the aquatic resources trust fund. 

However, the same September 30, 2005, expiration date applies. 

7

 After September 30, 2005, in the case of fuel none of the alcohol in which consists of 

ethanol, the rate is 2.15 cents-per-gallon. In any other case the rate is 4.3 cents-per-gallon. 
4

Provision (Code section) Expiration Date 

 

5. Personal tax credits allowed against regular 

tax and alternative minimum tax (“AMT”) 

(sec. 26(a)(2))9 12/31/05 

 

6. Election to include combat pay as earned 

income for purposes of earned income 

credit (sec. 32(c)(2)(B)(vi)) 12/31/05 

 

7. Tax credit for research and experimentation 

expenses (sec. 41(h)) 12/31/05 

8. Placed-in-service date for eligibility for tax 

credit for electricity production from wind, 

closed-loop biomass, open-loop biomass, 

geothermal or solar energy, small irrigation 

power, or municipal solid waste 

(sec. 45(d)(1)-(7)) 12/31/05 

 

9. Indian employment tax credit (sec. 45A(f)) 12/31/05 

10. Work opportunity tax credit 

(sec. 51(c)(4)) 12/31/05 

11. Welfare-to-work tax credit (sec. 51A(f)) 12/31/05 

12. Increased AMT exemption amount 

(sec. 55(d)(1)) 12/31/05 

13. Deduction for certain expenses of 

elementary and secondary school 

teachers (sec. 62(a)(2)(D)) 12/31/05 

 

14. Deduction of State and local general sales 

taxes (sec. 164(b)(5)) 12/31/05 

 8

 A corresponding provision is contained in section 302(d)(12) of ERISA. This 

provision also expires in 2005. 

9

 The Economic Growth and Tax Relief Reconciliation Act of 2001 (Pub. L. No. 107-16, 

June 7, 2001) (“EGTRRA”) made this provision permanent with respect to the child tax credit 

and the adoption credit. The provisions of EGTRRA generally sunset after 2010; see Part G., 

below. 
5

Provision (Code section) Expiration Date 

 

15. 15-year straight-line cost recovery for 

qualified leasehold improvements and 

qualified restaurant improvements 

(sec. 168(e)(3)(E)(iv) and (v)) 12/31/05

 

16. Accelerated depreciation for business 

property on an Indian reservation 

(sec. 168(j)(8)) 12/31/05 

 

17. Enhanced deduction for corporate 

contributions of computer equipment for 

educational purposes (sec. 170(e)(6)(G)) 12/31/05 

 

18. Expensing of “brownfields” 

environmental remediation costs 

(sec. 198(h)) 12/31/05 

 

19. Archer medical savings accounts 

(“MSAs”) (sec. 220(i)) 12/31/05 

20. Above-the-line deduction for qualified 

tuition and related expenses (sec. 222(e)) 12/31/05 

21. Interest rate used in determining the 

current liability of defined benefit 

pension plans (secs. 404(a)(1)(F), 

412(b)(5)(B)(ii)(II) and (l)(7)(C)(i)(IV))10 12/31/05 

 

22. Interest rate used in applying the dollar 

limit on benefits under a defined benefit 

pension plan to certain forms of benefit 

(sec. 415(b)(2)(E)(ii)) 12/31/05 

 

23. Suspension of 100 percent-of-net-income 

limitation on percentage depletion for oil 

and gas from marginal wells 

(sec. 613A(c)(6)(H)) 12/31/05 

 

 10 Provisions corresponding to Code section 412(b)(5)(B)(ii)(II) and (l)(7)(C)(i)(IV) are 

contained in ERISA section 302(b)(5)(B)(ii)(II) and (d)(7)(C)(i)(IV). ERISA 

section 4006(a)(3)(E)(iii)(V) also contains a corresponding provision relating to Pension Benefit 

Guaranty Corporation premiums. These provisions also expire in 2005. 
6

Provision (Code section) Expiration Date 

 

24. Qualified zone academy bonds −

allocations of bond authority 

(sec. 1397E(e)(1)) 12/31/05 

 

25. Tax incentives for investment in the 

District of Columbia: 

a. Designation of D.C. enterprise zone; 

employment tax credit; additional 

expensing (sec. 1400(f)(1)) 

b. Tax-exempt D.C. empowerment zone

bonds (sec. 1400A(b)) 

c. Zero-percent capital gains rate for 

investment in D.C. for gains through 

12/31/08 (sec. 1400B(b)(2), (3)(A), 

(4)(A)(i), and (4)(B)(i)(I)) 

d. Tax credit for first-time D.C. 

homebuyers (sec. 1400C(i)) 

12/31/05 

12/31/05 

12/31/05 

12/31/05 

 

26. New York Liberty Zone: advance 

refunding of certain tax-exempt bonds 

(sec. 1400L(e)(1)) 12/31/05 

 

27. Disclosure of tax information to facilitate 

combined employment tax reporting 

(sec. 6103(d)(5)) 12/31/05 

 

28. Disclosure of return information to 

inform officials of terrorist activities 

(sec. 6103(i)(3)(C)(iv)) 12/31/05 

 

29. Disclosure upon request of information 

relating to terrorist activities 

(sec. 6103(i)(7)(E)) 12/31/05 

 

30. Disclosure of return information to carry 

out income contingent repayment of 

student loans (sec. 6103(l)(13)(D)) 12/31/05 

 

31. Authority for undercover operations 

(sec. 7608(c)(6)) 12/31/05 
7

Provision (Code section) Expiration Date 

 

32. Temporary increase in limit on cover 

over of rum excise tax revenues (from 

$10.50 to $13.25 per proof gallon) to 

Puerto Rico and the Virgin Islands 

(sec. 7652(f)) 12/31/05

 

33. Joint Committee on Taxation annual 

report and annual joint hearings on IRS 

strategic plans (secs. 8021(f)(2) and 

8022(3)(C)) 6/1/05 & 12/31/05 

 

34. Tax on failure to comply with mental 

health parity requirements applicable to 

group health plans (sec. 9812(f))11 12/31/05

 

35. Special funding rules for defined benefit 

pension plans in the interstate bus 

industry12 12/31/05 

 11 Corresponding provisions are contained in ERISA and the Public Health Service Act. 

These provisions expire on December 31, 2005. 

12 These provisions are contained in section 769(c)(3) of the Retirement Protection Act 

of 1997, as added by section 201(a) of the Pension Funding Equity Act of 2004, and apply for 

purposes of Code section 412(l)(9)(A) and (m) and ERISA sections 302(d)(9)(A) and (e) and 

4006(a)(3)(E)(iii). 
8

C. Provisions Expiring in 2006 

Provision (Code section) Expiration Date 

 

1. Incentives to reinvest foreign earnings in 

the United States (sec. 965(f)) 10/20/0613

2. Credit for elective deferrals and individual 

retirement arrangement (“IRA”) 

contributions (sec. 25B(h)) 12/31/06 

 

3. Tax credit for qualified electric vehicles 

(sec. 30(e)) 12/31/0614

 

4. Incentives for biodiesel: 

a. Income tax credits for biodiesel fuel 

and biodiesel used to produce a 

qualified mixture (sec. 40A(e)) 

b. Biodiesel mixture excise tax credit 

and outlay payments (secs. 

6426(c)(6), 6427(e)(3)(B), and 9503) 

12/31/06 

12/31/06 

 

5. Deduction for clean-fuel vehicles and 

refueling property (sec. 179A(f)) 12/31/0615

 

6. Special depreciation rule for certain cleanfuel passenger automobiles 

(sec. 280F(a)(1)(C)(iii)) 12/31/06 

 

7. Special rule for sales or dispositions to 

implement FERC or State electric 

restructuring policy (sec. 451(i)(3)) 12/31/06 

 

 13 The expiration date is the close of the first taxable year beginning on or after October 

22, 2004. The last possible such date is October 20, 2006. 

14 The credit is reduced by 75 percent for vehicles placed in service after December 31, 

2005. No credit is available after 2006. 

15 The deduction is reduced by 75 percent for clean-fuel vehicles placed in service after 

December 31, 2005. No deduction is allowed for clean-fuel vehicles or refueling property after 

2006. 
9

Provision (Code section) Expiration Date 

 

8. Treatment of certain income of electric 

cooperatives (sec. 501(c)(12)(C) and 

(H)(x)) 12/31/06 

 

9. Two-year suspension of rules taxing certain 

distributions from the policyholder surplus 

account of a life insurance company 

(sec. 815(g)) 12/31/06 

 

10. Exceptions under subpart F for active 

financing income (secs. 953(e)(10) and 

954(h)(9)) 12/31/06 

 

11. New York Liberty Zone: special 

depreciation allowance 

(sec. 1400L(b)(2)(v)) 12/31/0616

 

12. New York Liberty Zone: five-year 

recovery period for depreciation of 

certain leasehold improvements 

(sec. 1400L(c)(2)(B)) 12/31/06 

 

13. New York Liberty Zone: increase in 

expensing under section 179 

(sec. 1400L(f) and (b)(2)(A)) 12/31/0617

 

14. New York Liberty Zone: extension of 

replacement period for nonrecognition of 

gain (sec. 1400L(g)) 12/31/06

 

15. Excise tax on diesel fuel used in trains 

and fuels used in barges operating on the 

designated inland waterways system 

(secs. 4041(a)(1)(C)(ii) and 

4042(b)(2)(C)) 12/31/0618

 16 In the case of nonresidential real property or residential rental property, the expiration 

date is December 31, 2009. 

17 In the case of nonresidential real property or residential rental property, the expiration 

date is December 31, 2009. 

18 The tax is reduced by one cent per gallon from January 1 through June 30, 2005 and 

by two cents per gallon from July 31 through December 31, 2006. 
10

D. Provisions Expiring in 2007 

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 gasoline 

 (sec. 4081(d)(2)(B))19

 b. Domestic and international air 

 passenger ticket taxes 

 (sec. 4261(i)(1)(A)(ii)) 

 c. Air cargo tax (sec. 4271(d)(1)(A)(ii)) 

9/30/07 

9/30/07 

9/30/07 

 

2. New markets tax credit (sec. 45D(f)) 12/31/0720

 

3. 50-percent tax credit for certain 

expenditures for maintaining railroad tracks 

(sec. 45G(f)) 12/31/07 

 

4. Seven-year recovery period for 

 motorsports entertainment complexes 

 (sec. 168(i)(15)(D)) 12/31/07 

 

5. Increase in expensing 

(sec. 179(b)(1) and (2), (c)(2), and 

(d)(1)(A)(ii)) 12/31/07 

 

6. Treatment of certain dividends of regulated 

investment companies (secs. 871(k)(1)(C) 

and (2)(C), 881(e)(1)(A) and (2), and 

897(h)(4)(A)(ii)) 12/31/07 

 

7. FUTA surtax of 0.2 percent 

(sec. 3301(1)) 12/31/07 

 19 The 4.3-cents-per-gallon rate is permanent. 

20 The new markets tax credit limitation is reduced to zero on January 1, 2008. 
11

E. Provisions Expiring in 2008 

Provision (Code section) Expiration Date 

 

1. Suspension of occupational taxes relating 

to distilled spirits, wine, and beer (sec. 

5148(b)) 6/30/08 

 

2. Disclosure of tax return information for 

 administration of certain veterans 

 programs (sec. 6103(l)(7)(D)(viii)) 9/30/08 

 

3. Reduced capital gain rates (sec. 1(h))21 12/31/08 

 

4. Dividends taxed at capital gain rates 

(sec. 1(h))22 12/31/08 

 

5. Placed-in-service date for eligibility for tax 

credit for refined coal (sec. 45(d)(8)) 12/31/08 

 

6. Special expensing rules for certain film and 

television productions (sec. 181(f)) 12/31/08 

 21 The expiration date is contained in section 303 of the Jobs and Growth Tax Relief 

Reconciliation Act of 2003 (Pub. L. No. 108-27, May 28, 2003) (“JGTRRA”). 

22 The expiration date is contained in section 303 of JGTRRA. 
12

F. Provisions Expiring in 2009 

Provision (Code section) Expiration Date 

 

1. Qualified green buildings and sustainable 

design project bonds (sec. 142(l)(8)) 9/30/09 

2. Credit for small refiners for production of 

diesel fuel in compliance with EPA sulfur 

regulations for small refiners 

(sec. 45H(c)(4)) 12/31/09 

 

3. Expensing of capital costs incurred by 

small refiners for production of diesel fuel 

in compliance with EPA sulfur regulations 

for small refiners (sec. 179B(a)) 12/31/09 

 

4. Exclusion of gain or loss on sale or 

exchange of certain brownfield sites from 

unrelated business taxable income 

(sec. 512(b)(18)(K)) 12/31/09 

 

5. Empowerment zone tax incentives: 23

a. Increased exclusion of gain 

(attributable to periods before 1/1/15) 

on the sale of qualified business stock 

of an empowerment zone business 

(secs. 1202(a)(2)(C) and 

1391(d)(1)(A)(i)) 

b. Empowerment zone tax-exempt bonds 

(secs. 1394 and 1391(d)(1)(A)(i)) 

c. Empowerment zone employment credit 

(secs. 1396 and 1391(d)(1)(A)(i)) 

d. Increased expensing under sec. 179 

(secs. 1397A and 1391(d)(1)(A)(i)) 

e. Nonrecognition of gain on rollover of 

empowerment zone investments 

(secs. 1397B and 1391(d)(1)(A)(i)) 

12/31/09 

12/31/09 

12/31/09 

12/31/09 

12/31/09 

 23 The empowerment zone tax incentives may expire earlier than December 31, 2009 

with respect to an empowerment zone if a State or local government provided for an expiration 
13

Provision (Code section) Expiration Date 

 

6. Renewal community tax incentives: 

a. Zero-percent capital gains rate for 

investment in renewal communities for 

gains through 12/31/14 

(sec. 1400F(b)(2)(A)(i), (3)(A), and 

(4)(A)(i)) 

b. Employment credit (secs. 1400H and 

1391(d)(1)(A)(i)) 

c. Commercial revitalization deduction 

(sec. 1400I(g)) 

d. Increased expensing under sec. 179 

(sec. 1400J(b)(1)(A)) 

12/31/09 

12/31/09 

12/31/09 

12/31/09 

 

7. New York Liberty Zone: tax exempt bond 

financing (sec. 1400L(d)(2)(D)) 12/31/09 

 

date in the nomination of an empowerment zone or the appropriate Secretary revokes an 

empowerment zone’s designation. 
14

G. Provisions Expiring in 2010 

Provision (Code section) Expiration Date 

 

1. Provisions of the Economic Growth and 

Tax Relief Reconciliation Act of 200124 12/31/10 

2. Alcohol fuels income tax credit 

(sec. 40(e)(1)(A), (h)(1), and (h)(2)) 12/31/1025

3. Alcohol fuel mixture excise tax credit and 

outlay payments (secs. 6426(b)(5), 

6427(e)(3)(A), and 9053) 12/31/10 

 24 The sunset applies to all provisions otherwise in effect on the expiration date. Public 

Law 107-358 repealed the sunset contained in EGTRRA with respect to the exclusion from 

Federal income tax for restitution received by victims of the Nazi Regime. Title I of JGTRRA 

accelerated the EGTRRA changes relating to the increase in the child tax credit, marriage 

penalty relief, and reductions in individual income tax rates. JGTRRA provides that the sunset 

provision of EGTRRA applies to the changes the same as the sunset applies to the EGTRRA 

provisions to which the changes relate. Title I of the Working Families Tax Relief Act of 2004 

(“WFTRA”) accelerated the increase in the refundability of the child tax credit and repeals the 

scheduled reductions in the child tax credit, marriage penalty relief, and 10-percent rate bracket. 

WFTRA provides that these amendments are subject to the sunset provision of EGTRRA to the 

same extent as the provisions of EGTRRA to which the amendments relate.

25 The income tax credit expires 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.
15

H. Provisions Expiring in 2013 

Provision (Code section) Expiration Date 

 

1. Transfer of excess pension assets to retiree 

health accounts (sec. 420(b)(5)) 12/31/13 
16

I. Provisions Expiring in 2014 

Provision (Code section) Expiration Date 

 

1. IRS user fees for a letter ruling, 

determination letter, opinion letter or other 

similar ruling or determination 

(sec. 7528(c)) 9/30/14