Provision Effective 2000 2001 2002 2003 2004 2005 2006 2007 2

XIII. Tax Relief Provisions 

A. Small Business Tax Relief Provisions

1. Increase section 179 expensing to $30,000 ...................... tyba 12/31/00 --- -359 -616 -350 -187 -176 -160 -168 

2. Accelerate repeal of the FUTA surtax [1] .......................... lpo/a 1/1/01 --- -991 -1,397 -1,416 420 1,732 174 -21 1

3. Accelerate 100% self-employed health insurance 

deduction ........................................................................... tyba 12/31/99 -259 -1,065 -1,093 -697 --- --- --- --- 

4. Permanent extension of the Work Opportunity Tax

Credit ................................................................................. wpoifibwa 12/31/01 --- --- -115 -307 -425 -475 -497 -505 

5. Allow small businesses an increased deduction for

meals and entertainment expenses .................................. tyba 12/31/00 --- -160 -471 -825 -1,226 -1,678 -2,186 -2,483 -2

Total of Small Business Tax Relief Provisions ................................................... -259 -2,575 -3,692 -3,595 -1,418 -597 -2,669 -3,177 -2

B. Deduction for Health and Long-Term Care 

Insurance Costs of Individuals Not Participatingin Employer-Subsidized Health Plans: 

1. Provide an above-the-line deduction for health 

insurance expenses - 25% in 2002 through 2004, 35% in 2005, 65% in 2006, and 100% thereafter .............. tyba 12/31/01 --- --- -501 -1,702 -1,807 -2,163 -3,695 -6,939 -9

2. Provide an above-the-line deduction for long-term 

care insurance expenses - 25% in 2002 through 2004, 35% in 2005, 65% in 2006, and 100% thereafter ........................................................................... tyba 12/31/01 --- --- -49 -333 -369 -423 -686 -1,333 -2

Total of Health and Long-Term Care Insurance Provisions .................................... --- --- -550 -2,035 -2,176 -2,586 -4,381 -8,272 -11

C. Pension Tax Relief Provisions

I. Provisions for Expanding Coverage 

1. Increase contribution and benefit limits: 

a. Increase limitation on exclusion for elective  deferrals to $11,000 in 2001, $12,000 in 2002,  $13,000 in 2003, $14,000 in 2004, $15,000 in  2005; index in $500 increments thereafter [2] .............. yba 12/31/00 --- -131 -317 -468 -578 -664 -723 -774 

b. Increase limitation on SIMPLE elective  contributions to $7,000 in 2001, $8,000 in 2002,  $9,000 in 2003, $10,000 in 2004; index in $500  increments thereafter [2] .............................................. yba 12/31/00 --- -5 -14 -22 -27 -29 -29 -30 c. Increase defined benefit dollar limit to $160,000 .......... yba 12/31/00 --- -18 -31 -40 -45 -48 -50 -53 

[Millions of Dollars]

ESTIMATED REVENUE EFFECTS OF THE REVENUE PROVISIONS CONTAINED IN H.R. 833,

Fiscal Years 2000 - 2010

AS PASSED BY THE SENATE 

THE "BANKRUPTCY REFORM ACT OF 2000," 
Page 2

Provision Effective 2000 2001 2002 2003 2004 2005 2006 2007 2

d. Lower early retirement age to 62; lower normal  retirement age to 65 ..................................................... yba 12/31/00 --- -3 -4 -4 -4 -5 -5 -5 e. Increase annual addition limitation for defined  contribution plans to $40,000 [2] .................................. yba 12/31/00 --- -6 -12 -14 -15 -16 -17 -19 f. Increase qualified plan compensation limit to  $200,000 [2] ................................................................. yba 12/31/00 --- -43 -74 -84 -91 -99 -107 -115 g. Increase limits on deferrals under deferred  compensation plans of State and local governments  and tax-exempt organizations to $11,000 in  2001, $12,000 in 2002, $13,000 in 2003, $14,000  in 2004, $15,000 in 2005; index in $500 increments  thereafter [2] ................................................................. yba 12/31/00 --- -53 -93 -108 -119 -129 -139 -147 

2. Plan loans for subchapter S owners, partners, and 

sole proprietors .................................................................. yba 12/31/00 --- -18 -30 -33 -35 -37 -39 -42 

3. Modification of top-heavy rules .......................................... pyba 12/31/00 --- -4 -9 -11 -12 -14 -16 -17 4. Elective deferrals not taken into account for 

purposes of deduction limits .............................................. yba 12/31/00 --- -40 -75 -87 -94 -101 -108 -115 

5. Repeal of coordination requirements for deferred 

compensation plans of State and local governments and tax-exempt organizations ........................................... yba 12/31/00 --- -16 -22 -22 -22 -22 -23 -24 

6. Elimination of user fee for certain requests 

regarding employer pension plans; waiver applies only for request made during first 5 plan years [1] ............ rma 12/31/00 --- -9 -5 -5 -5 -5 -5 -6 

7. Definition of compensation for purposes of 

deduction limits [2] ............................................................ yba 12/31/00 --- -1 -2 -3 -3 -3 -3 -3 

8. Option to treat elective deferrals as after-tax 

contributions ...................................................................... tyba 12/31/00 --- 50 100 131 144 89 -2 -104 

Subtotal of Provisions for Expanding Coverage ...................................................... --- -297 -588 -770 -906 -1,083 -1,266 -1,454 -1

II. Provisions for Enhancing Fairness for Women 1. Additional catch-up contributions for individuals age 

50 and above - increase in maximum contribution limits for pension plans by 10% annually beginning in 2001, not to exceed 50% ............................................... yba 12/31/00 --- -74 -152 -131 -99 -86 -86 -88 

2. Equitable treatment for contributions of employees 

to defined contribution plans [2] ........................................ yba 12/31/00 --- -51 -78 -84 -91 -97 -104 -111 

3. Faster vesting of certain employer matching 

contributions ...................................................................... pyba 12/31/00 

4. Simplify and update the minimum distribution rules 

by modifying post-death distribution rules, reducing (to 10%) the excise tax on failures to make minimum distributions, and directing the Treasury to simplify and finalize regulations relating to the minimum distribution rules ................................................ yba 12/31/00 --- -118 -212 -239 -268 -297 -330 -366 

5. Clarification of tax treatment of division of section 

457 plan benefits upon divorce ......................................... tdapma 12/31/00 

6. Modification of safe harbor relief for hardship 

withdrawals from 401(k) plans .......................................... yba 12/31/00 

Subtotal of Provisions for Enhancing Fairness for Women .......................................... --- -243 -442 -454 -458 -480 -520 -565 

III. Provisions for Increasing Portability for Participants 

1. Rollovers allowed among governmental section 

457 plans, section 403(b) plans, and qualified plans ........ dma 12/31/00 --- 26 -5 -5 -5 -5 -5 -5 

 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - 
Page 3

Provision Effective 2000 2001 2002 2003 2004 2005 2006 2007 2

2. Rollovers of IRAs to workplace retirement plans ............... dma 12/31/00 3. Rollovers of after-tax retirement plan contributions ........... dma 12/31/00 4. Waiver of 60-day rule ........................................................ dma 12/31/00 5. Treatment of forms of qualified plan distributions .............. yba 12/31/00 6. Rationalization of restrictions on distributions ................... da 12/31/00 7. Purchase of service credit in governmental defined 

benefit plans ...................................................................... ta 12/31/00 

8. Employers may disregard rollovers for cash-out 

amounts ............................................................................ da 12/31/00 

9. Minimum distribution and inclusion requirements for 

section 457 plans .............................................................. dma 12/31/00 

Subtotal of Provisions for Increasing Portability for Participants .................................... --- 26 -5 -5 -5 -5 -5 -5 

IV. Provisions for Strengthening Pension Security and 

Enforcement 

1. Phase-in repeal of 150% of current liability funding 

limit; extend maximum deduction rule ............................... yba 12/31/00 --- -3 -14 -20 -36 -36 -38 -38 

2. Excise tax relief for sound pension funding ....................... yba 12/31/00 --- -2 -3 -3 -3 -3 -3 -3 3. Notice of significant reduction in plan benefit 

accruals ............................................................................. pateo/a DOE 

4. Investment of employee contributions in 401(k) 

plans .................................................................................. aiii TRA’97 

5. Repeal 100% of compensation limit for 

multiemployer plans .......................................................... yba 12/31/00 --- -2 -4 -4 -4 -4 -4 -5 

Subtotal of Provisions for Strengthening Pension Security  and Enforcement .......................................................................................... --- -7 -21 -27 -43 -43 -45 -46 

V. Provisions for Reducing Regulatory Burdens 

1. Modification of timing of plan valuations ............................ pyba 12/31/00 2. ESOP dividends may be reinvested without loss of 

dividend deduction ............................................................ tyba 12/31/00 --- -19 -44 -56 -61 -63 -66 -69 

3. Repeal transition rule relating to certain highly 

compensated employees .................................................. pyba 12/31/99 -1 -2 -3 -3 -3 -3 -4 -4 

4. Employees of tax-exempt entities [3] ................................ DOE 5. Treatment of employer-provided retirement advice .......... yba 12/31/00 6. Pension plan reporting simplification [3] ............................ 1/1/017. Improvement to Employee Plans Compliance 

Resolution System [3] ....................................................... DOE 

8. Clarification of exclusion for employer-provided 

transit passes .................................................................... tyba 12/31/99 -4 -8 -10 -13 -14 -15 -15 -16 

9. Repeal of multiple use test ................................................ yba 12/31/00 

10. Flexibility in nondiscrimination and line of business 

rules [3] ............................................................................. DOE 

11. Extension to international organization of 

moratorium on application of certain nondiscrimination rules applicable to State and local government plans .............................................................. yba 12/31/00 

Subtotal of Provisions for Reducing Regulatory Burdens .......................................... -5 -29 -57 -72 -78 -81 -85 -89 

VI. Provisions relating to plan amendments ........................... DOE 

Total of Pension Tax Relief Provisions ............................................................... -5 -550 -1,113 -1,328 -1,490 -1,692 -1,921 -2,159 -2

 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - 

 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - - 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Considered in Other Provisions - 

 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Considered in Other Provisions - 
Page 4

Provision Effective 2000 2001 2002 2003 2004 2005 2006 2007 2

D. Revenue Offset Provisions

1. Repeal installment method for most accrual basis 

taxpayers; adjust pledge rules ........................................... ---

2. Modify estimated tax rules for closely-owned REIT 

dividends ........................................................................... ---

Total of Revenue Offset Provisions ................................................................. 

 NET TOTAL ............................................................................................................ -264 -3,125 -5,355 -6,958 -5,084 -4,875 -8,971 -13,608 -16

Joint Committee on Taxation -------------------------------------- NOTE: Details may not add to totals due to rounding. Legend for "Effective" column: 

aiii TRA’97 = as if included in the Taxpayer Relief Act of 1997 rma = requests made after da = distributions after ta = transfers after dma = distributions made after tdapma = transfers, distributions, and payments made after DOE = date of enactment tyba = taxable years beginning after lpo/a = labor performed on or after wpoifibwa = wages paid or incurred for individuals beginning work after pateo/a = plan amendments taking effect on or after yba = years beginning after pyba = plan years beginning after 

[1] Estimate provided by the Congressional Budget Office. [2] Provision includes interaction with other provisions in Provisions for Expanding Coverage. [3] Directs the Secretary of the Treasury to modify rules through regulations. 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Previously Enacted - - - - - 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Previously Enacted - - - - - 

 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Previously Enacted - - - - -