I 

108TH CONGRESS 

2D SESSION H. R. 3773

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. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 4, 2004

Mr. HULSHOF (for himself and Mr. RYAN of Wisconsin) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Tax Relief Guarantee Act of 2004’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend-
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1 ment or repeal is expressed in terms of an amendment 

2 to, or repeal of, a section or other provision, the reference 

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code of 1986. 

5 SEC. 2. REPEAL OF SUNSET OF THE ECONOMIC GROWTH 

6 AND TAX RELIEF RECONCILIATION ACT OF 

7 2001. 

8 Title IX of the Economic Growth and Tax Relief Rec9 onciliation Act of 2001 is hereby repealed. 

10 SEC. 3. REPEAL OF SCHEDULED REDUCTIONS IN TAX BEN11 EFITS PROVIDED BY THE JOBS AND GROWTH 

12 TAX RELIEF RECONCILIATION ACT OF 2003. 

13 (a) CHILD TAX CREDIT.—Subsection (a) of section 

14 24 (relating to child tax credit) is amended to read as fol15 lows: 

16 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al17 lowed as a credit against the tax imposed by this chapter 

18 for the taxable year with respect to each qualifying child 

19 of the taxpayer an amount equal to $1,000.’’

20 (b) MARRIAGE PENALTY RELIEF IN STANDARD DE21 DUCTION.—

22 (1) IN GENERAL.—Paragraph (2) of section 

23 63(c) (relating to basic standard deduction) is 

24 amended to read as follows: 
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1 ‘‘(2) BASIC STANDARD DEDUCTION.—For pur2 poses of paragraph (1), the basic standard deduction 

3 is—

4 ‘‘(A) 200 percent of the dollar amount in 

5 effect under subparagraph (C) for the taxable 

6 year in the case of—

7 ‘‘(i) a joint return, or 

8 ‘‘(ii) a surviving spouse (as defined in 

9 section 2(a)), 

10 ‘‘(B) $4,400 in the case of a head of 

11 household (as defined in section 2(b)), or 

12 ‘‘(C) $3,000 in any other case.’’. 

13 (2) CONFORMING AMENDMENTS.—

14 (A) Section 63(c)(4) is amended by strik15 ing ‘‘(2)(D)’’ each place it occurs and inserting 

16 ‘‘(2)(C)’’. 

17 (B) Section 63(c) is amended by striking 

18 paragraph (7). 

19 (c) MARRIAGE PENALTY RELIEF IN 15-PERCENT IN20 COME TAX BRACKET.—Paragraph (8) of section 1(f) is 

21 amended to read as follows: 

22 ‘‘(8) ELIMINATION OF MARRIAGE PENALTY IN

23 15-PERCENT BRACKET.—With respect to taxable 

24 years beginning after December 31, 2004, in pre25 scribing the tables under paragraph (1)—
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1 ‘‘(A) the maximum taxable income in the 

2 15-percent rate bracket in the table contained 

3 in subsection (a) (and the minimum taxable in4 come in the next higher taxable income bracket 

5 in such table) shall be 200 percent of the max6 imum taxable income in the 15-percent rate 

7 bracket in the table contained in subsection (c) 

8 (after any other adjustment under this sub9 section), and 

10 ‘‘(B) the comparable taxable income 

11 amounts in the table contained in subsection 

(d) shall be 1 12 ⁄2 of the amounts determined 

13 under subparagraph (A).’’

14 (d) 10-PERCENT RATE BRACKET.—

15 (1) IN GENERAL.—Clause (i) of section 

16 1(i)(1)(B) is amended by striking ‘‘($12,000 in the 

17 case of taxable years beginning after December 31, 

18 2004, and before January 1, 2008)’’. 

19 (2) INFLATION ADJUSTMENT.—Subparagraph 

20 (C) of section 1(i)(1) is amended to read as follows:

21 ‘‘(C) INFLATION ADJUSTMENT.—In pre22 scribing the tables under subsection (f) which 

23 apply with respect to taxable years beginning in 

24 calendar years after 2003—
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1 ‘‘(i) the cost-of-living adjustment shall 

2 be determined under subsection (f)(3) by 

3 substituting ‘2002’ for ‘1992’ in subpara4 graph (B) thereof, and 

5 ‘‘(ii) the adjustments under clause (i) 

6 shall not apply to the amount referred to 

7 in subparagraph (B)(iii). 

8 If any amount after adjustment under the pre9 ceding sentence is not a multiple of $50, such 

10 amount shall be rounded to the next lowest 

11 multiple of $50.’’

12 (e) PERMANENT REDUCTION IN CAPITAL GAINS

13 RATES FOR INDIVIDUALS AND IN TAXATION OF DIVI14 DENDS.—Section 303 of the Jobs and Growth Tax Relief 

15 Reconciliation Act of 2003 is hereby repealed. 

16 (f) EXPENSING UNDER SECTION 179.—

17 (1) Paragraph (1) of section 179(b) is amended 

18 by striking ‘‘$25,000 ($100,000 in the case of tax19 able years beginning after 2002 and before 2006)’’ 

20 and inserting ‘‘$100,000’’. 

21 (2) Paragraph (2) of section 179(b) is amended 

22 by striking ‘‘$200,000 ($400,000 in the case of tax23 able years beginning after 2002 and before 2006)’’ 

24 and inserting ‘‘$400,000’’. 

25 (g) BONUS DEPRECIATION.—
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1 (1) IN GENERAL.—So much of section 168(k) 

2 as precedes paragraph (2) is amended to read as fol3 lows: 

4 ‘‘(k) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY

5 ACQUIRED AFTER MAY 5, 2003.—

6 ‘‘(1) ADDITIONAL ALLOWANCE.—In the case of 

7 any qualified property— 

8 ‘‘(A) the depreciation deduction provided 

9 by section 167(a) for the taxable year in which 

10 such property is placed in service shall include 

11 an allowance equal to 50 percent of the ad12 justed basis of the qualified property, and 

13 ‘‘(B) the adjusted basis of the qualified 

14 property shall be reduced by the amount of 

15 such deduction before computing the amount 

16 otherwise allowable as a depreciation deduction 

17 under this chapter for such taxable year and 

18 any subsequent taxable year.’’

19 (2) CONFORMING AMENDMENTS.—

20 (A) Subparagraph (A) of section 168(k)(2) 

21 is amended by striking clauses (ii), (iii), and 

22 (iv) and inserting the following new clauses: 

23 ‘‘(ii) the original use of which com24 mences with the taxpayer after May 5, 

25 2003, and 
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1 ‘‘(iii) which is acquired by the tax2 payer after May 5, 2003, but only if no 

3 written binding contract for the acquisition 

4 was in effect before May 6, 2003.’’

5 (B) Paragraph (2) of section 168(k) is 

6 amended by striking subparagraph (B) and by 

7 redesignating subparagraphs (C), (D), (E), and 

8 (F) as subparagraphs (B), (C), (D), and (E), 

9 respectively. 

10 (C) Clause (i) of section 168(k)(2)(C), as 

11 so redesignated, is amended by striking ‘‘after 

12 September 10, 2001, and before January 1, 

13 2005’’ and inserting ‘‘after May 5, 2003’’. 

14 (D) Clause (ii) of section 168(k)(2)(C), as 

15 so redesignated, is amended by striking ‘‘Sep16 tember 10, 2001’’ and inserting ‘‘May 5, 

17 2003’’. 

18 (E) Clause (i) of section 168(k)(2)(D), as 

19 so redesignated, is amended by striking 

20 ‘‘$4,600’’ and inserting ‘‘$7,650’’. 

21 (F) Paragraph (4) of section 168(k) is 

22 amended to read as follows: 

23 ‘‘(4) ELECTION OF 30-PERCENT BONUS DEP24 RECATION.—If a taxpayer makes an election under 
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1 this subparagraph with respect to any class of prop2 erty for any taxable year—

3 ‘‘(A) paragraph (1)(A) shall be applied by 

4 substituting ‘30 percent’ for ‘50 percent’ with 

5 respect to all property in such class placed in 

6 service during such taxable year, and 

7 ‘‘(B) subparagraph (E)(i) shall be applied 

8 by substituting ‘$4,600’ for ‘$7,650’ with re9 spect to automobiles (if any) which are part of 

10 such class.’’

11 (h) EFFECTIVE DATES.—

12 (1) IN GENERAL.—Except as otherwise pro13 vided in this subsection, the amendments made by 

14 this section shall apply to taxable years beginning 

15 after December 31, 2004. 

16 (2) BONUS DEPRECIATION.—The amendments 

17 made by subsection (g) shall apply to property 

18 placed in service after May 5, 2003, in taxable years 

19 ending after such date.

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