**LIST OF EXPIRED AND EXPIRINGFEDERAL TAX PROVISIONS,1998-2008**

Prepared by the Staff

of the 

JOINT COMMITTEE ON TAXATION

January 20, 1999

JCX-1-99

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**CONTENTS**

**INTRODUCTION**

**EXPIRED AND EXPIRING FEDERAL TAX PROVISIONS, 1998-2008**

	A.	Provisions That Expired 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	

	J.	Provisions Expiring in 2008	

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**INTRODUCTION**

	This document,(1) prepared by the staff of the Joint Committee on Taxation, provides a listingof tax provisions (with Code sections) that expired in 1998 and that are currently scheduled toexpire in 1999-2008.

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**EXPIRED AND EXPIRING FEDERAL TAX PROVISIONS, 1998-2008**

**A.  Provisions That Expired in 1998**

| **Provision (Code section)**                                                                                                                                      | **Expiration Date** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
| 1.	Nonconventional fuels tax credit for fuelfrom biomass and coal - facilities placedin service pursuant to binding contractsbefore January 1, 1997 (sec. 29)     | 6/30/98             |
| 2.	Moratorium on regulations regardingemployment taxes of limited partners(sec. 1402(a)(13) and sec. 935 of theTaxpayer Relief Act of 1997 (the "1997Act"))       | ****6/30/98         |
| 3.	Temporary increase in limit on coverover of rum excise tax revenues (from$10.50 to $11.30 per proof gallon) toPuerto Rico and the Virgin Islands (sec.7652(f)) | ****9/30/98         |
| 4.	Personal tax credits fully allowed againstregular tax liability without regard to thealternative minimum tax (sec. 26)                                         | ****12/31/98        |

**B.  Provisions Expiring in 1999**

| **Provision (Code section)**                                                                                                | **Expiration Date** |
|-----------------------------------------------------------------------------------------------------------------------------|---------------------|
| 1.	Tax credit for research andexperimentation expenses (sec. 41)                                                            | 6/30/99             |
| 2.	Work opportunity tax credit (sec. 51)                                                                                    | 6/30/99             |
| 3.	Welfare-to-work tax credit (sec. 51A)                                                                                    | 6/30/99             |
| 4.	Tax credit for electricity production fromwind and closed-loop biomass -- facilitiesplaced in service date (sec. 45(c))  | 6/30/99             |
| 5.	Waiver of penalty for failure of smallbusiness to use Electronic Funds TransferPayment System ("EFTPS")                  | 6/30/99(2)          |
| 6.	Suspension of 100 percent-of-net-incomelimitation on percentage depletion for oiland gas from marginal wells (sec. 613A) | 12/31/99            |
| 7.	Qualified zone academy bonds (sec.1397E)                                                                                 | 12/31/99            |
| 8.	Exceptions under subpart F for activefinancing income (secs. 953 and 954)                                                | 12/31/99            |

**C.  Provisions Expiring in 2000**

| **Provision (Code section)**                                                                                              | **Expiration Date** |
|---------------------------------------------------------------------------------------------------------------------------|---------------------|
| 1.	Exclusion for employer-providededucational assistance (sec. 127)                                                       | 5/31/00             |
| 2.	Enhanced deduction for corporatecontributions of computer equipment toelementary and secondary schools (sec.170(e)(6)) | 12/31/00            |
| 3.	Expensing of "Brownfields"environmental remediation costs (sec.198)                                                    | 12/31/00            |
| 4.	Establishment of Medical SavingsAccounts ("MSAs") (sec. 220)                                                           | 12/31/00(3)         |
| 5.	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 mentalhealth parity requirements applicable togroup health plans (sec. 9812) | 9/29/01             |
| 2.	Tax credit for non-special needs adoption(sec. 23(d)(2)(B))                                                | 12/31/01            |
| 3.	Exclusion for employer-providedadoption assistance (sec. 137(f))                                           | 12/31/01            |

**E.  Provisions Expiring in 2002**

| **Provision (Code section)**                                                                                                       | **Expiration Date** |
|------------------------------------------------------------------------------------------------------------------------------------|---------------------|
| 1.	Combined employment tax reportingdemonstration project (sec. 976 of the1997 Act)                                                | 8/5/02              |
| 2.	Tax incentives for investment in theDistrict of Columbia:                                                                       |                     |
| a.  Designation of D.C. Enterprise Zone;employment tax credit; additionalexpensing (sec. 1400)                                     | 12/31/02            |
| b.  Tax-exempt D.C. economicdevelopment bonds (sec. 1400A)                                                                         | 12/31/02            |
| c.  Zero percent capital gains rate forinvestment in D.C. for property acquiredby 12/31/02; for gains through 12/31/07(sec. 1400B) | 12/31/02            |
| 3.	Luxury excise tax on passenger highwayautomobiles (sec. 4001)                                                                   | 12/31/02(4)         |

**F.  Provisions Expiring in 2003**

| **Provision (Code section)**                                                                                                                                                                | **Expiration Date** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
| 1.	Disclosure of tax return information foradministration of certain veteransprograms (sec. 6103(l)(7)(D)(viii))                                                                            | 9/30/03             |
| 2.	Disclosure of tax return information tocarry out administration of incomecontingent repayment of student loans(sec. 6103(l)(13))                                                         | 9/30/03             |
| 3.	IRS user fees for letter rulings,determination letters, advance pricingagreements, and similar requests (sec.10511 of the Revenue Act of 1987, as lastamended by sec. 2 of P.L. 104-117) | 9/30/03             |
| 4.	Indian employment tax credit (sec. 45A)                                                                                                                                                  | 12/31/03            |
| 5.	Accelerated depreciation for businessproperty on an Indian reservation (sec.168(j))                                                                                                      | 12/31/03            |
| 6.	Joint Committee on Taxation annualreport and annual joint hearings on IRSstrategic plans (secs. 4001 and 4002 ofthe Internal Revenue ServiceRestructuring and Reform Act of 1998)        | 12/31/03            |

**G.  Provisions Expiring in 2004**

| **Provision (Code section)**                                                                                                           | **Expiration Date**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.	Empowerment zone tax incentives(employment tax credit, additionalexpensing, tax-exempt bonds) generally(secs. 1391, 1394, and 1396) | 12/31/04(5)2.	Tax credit for qualified electric vehicles(sec. 30)12/31/04(6)3.	Deduction for clean-fuel vehicles andrefueling property (sec. 179A)12/31/04(7)
**H.  Provisions Expiring in 2005**
**Provision (Code section)****Expiration Date**1.	Leaking Underground Storage Tank TrustFund excise tax (sec. 4081(d)(3))3/31/052. 	Highway Trust Fund excise tax rates:	a.  All but 4.3 cents per gallon of thetaxes on highway gasoline, diesel fuel,kerosene, and special motor fuels (secs.4041(a) and 4081(d)(1))(8)9/30/05	b.  Tax on retail sale of heavy highwayvehicles (sec. 4051(c))9/30/05	c.  Tax on heavy truck tires (sec. 4071(d))9/30/05	d.  Annual use tax on heavy highwayvehicles (sec. 4481)9/30/053.	Aquatic Resources Trust Fund and Landand Water Conservation Fund excise taxon motorboat gasoline and special fuels(secs. 4041(a) and 4081(a)(1)) -- all but4.3 cents per gallon(9)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(10)**
**Provision (Code section)****Expiration Date**1.	Airport and Airway Trust Fund excisetaxes:	a.  All but 4.3 cents per gallon of taxes onnoncommercial aviation jet fuel andnoncommercial aviation gasoline (secs.4041(c), 4081(d), and 4091)(11)9/30/07	b.  Domestic and international airpassenger ticket taxes (sec. 4261)9/30/07	c.  Air cargo tax (sec. 4271)9/30/07>2.	Reduced excise tax rates for alcohol fuelsand alcohol fuels mixtures (secs.4041(b)(2) and (k), 4081(c), and 4091(c))9/30/07(12)3.	Alcohol fuels income tax credits (sec. 40)12/31/07(13)4.	FUTA surtax of 0.2 percent (sec. 1301)12/31/075.	Empowerment zone tax incentives, forzones added by the 1997 Act:	a.  Empowerment zone employment taxcredit (sec. 1396)12/31/07(14)
**J.  Provisions Expiring in 2008**
**Provision (Code section)**>**Expiration Date**1.	Empowerment zone tax incentives, forzones added by the 1997 Act:	a.  Empowerment zone expensing; tax-exempt bonds (secs. 1391 and 1394)12/31/08(15)
1.   This document may be cited as follows: Joint Committee on Taxation, *List of Expired andExpiring Federal Tax Provisions, 1998-2008* (JCX-1-99), January 20, 1999.
2.   The Internal Revenue Service has administratively extended the waiver through June 30, 1999. IRS Notice 98-68, November 18, 1998.  The previous statutory waiver expired June 30, 1998; see section931 of the 1997 Act.
3.   The ability of individuals to establish MSAs may expire earlier than December 31, 2000, ifcertain numerical limits on the number of MSAs established are exceeded.
4.   The luxury excise tax on automobiles phases down as follows:  6 percent in 1999, 5 percent in2000, 4 percent in 2001, and 3 percent in 2002.
5.   This expiration date does not apply to new empowerment zones added by the 1997 Act, whichexpire later.  See, I. Provisions Expiring in 2007 and J. Provisions Expiring in 2008, below.
6.   The credit phases down for vehicles placed in service after 12/31/01.  The credit is reduced by25 percent in 2002, 50 percent in 2003, and 75 percent in 2004.  No credit is available after 2004. 
7.   The deduction phases down for vehicles placed in service after 12/31/01.  The deduction isreduced by 25 percent in 2002, 50 percent in 2003, and 75 percent in 2004.  No deduction is allowedafter 2004. 
8.   The 4.3-cents-per-gallon rate is permanent.
9.   The 4.3-cents-per-gallon rate is permanent.
10.   There are no Federal tax provisions expiring in calendar years 2006.
11.   The 4.3-cents-per-gallon rate is permanent.
12.   The reduced rates expire earlier if the tax rate on gasoline and other motor fuels drops to 4.3cents per gallon, which is currently scheduled to occur after September 30, 2005, unless the Highway TrustFund tax rates are extended beyond that date.
13.   The income tax credits expire earlier if the tax rate on gasoline and other motor fuels drops to4.3 cents per gallon, which is currently scheduled to occur after September 30, 2005, unless the HighwayTrust Fund tax rates are extended beyond that date.
14.   The empowerment zone employment tax credit is only available to the two additional urbanempowerment zones that were designated by February 1, 1998.
15.   Empowerment zone tax incentives generally expire 10 years after zone designation; thus, theempowerment zones whose designations take effect in 1998 expire December 31, 2008. |