LIST OF EXPIRED AND EXPIRING FEDERAL TAX PROVISIONS

Prepared by the Staff

of the

JOINT COMMITTEE ON TAXATION

January 21, 2004

JCX-1-04
i

CONTENTS

Page

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

EXPIRED AND EXPIRING FEDERAL TAX PROVISIONS...................................................... 2

A. Provisions That Expired in 2003......................................................................................... 2

B. Provisions Expiring in 2004................................................................................................ 5

C. Provisions Expiring in 2005................................................................................................ 7

D. Provisions Expiring in 2006................................................................................................ 9

E. Provisions Expiring in 2007.............................................................................................. 11

F. Provisions Expiring in 2008.............................................................................................. 12

G. Provisions Expiring in 2009.............................................................................................. 13

H. Provisions Expiring in 2010.............................................................................................. 14
1

INTRODUCTION

This document,1 prepared by the staff of the Joint Committee on Taxation, provides a 

listing of tax provisions that expired in 2003 or are currently scheduled to expire thereafter (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 Expired 

and Expiring Federal Tax Provisions (JCX-1-04), January 21, 2004.
2

EXPIRED AND EXPIRING FEDERAL TAX PROVISIONS

A. Provisions That Expired in 2003

Provision (Code section)2 Expiration Date

1. Personal tax credits allowed against regular 

tax and alternative minimum tax (“AMT”) 

(sec. 26(a)(2))3

12/31/03

2. Tax credit for electricity production from 

wind, closed-loop biomass, and poultry 

waste -- facilities placed in service date

(sec. 45(c)(3)) 12/31/03

3. Work opportunity tax credit (sec. 51(c)(4)) 12/31/03

4. Welfare-to-work tax credit (sec. 51A(f)) 12/31/03

5. Deduction for certain expenses of 

elementary and secondary school teachers 

(sec. 62(a)(2)(D)) 12/31/03

6. Enhanced deduction for corporate 

contributions of computer equipment for 

educational purposes (sec. 170(e)(6)(G)) 12/31/03

7. Expensing of “brownfields” environmental 

remediation costs (sec. 198(h)) 12/31/03

8. Archer medical savings accounts (“MSAs”) 

(sec. 220(i)) 12/31/03

 

2

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

indicated.

3

 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 H., 

below.
3

Provision (Code section) Expiration Date

9. Interest rate used in determining additional 

required contributions to defined benefit 

plans for 2002 and 2003

(sec. 412(l)(7)(C)(i)(III))412/31/03

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

limitation on percentage depletion for oil 

and gas from marginal wells

(sec. 613A(c)(6)(H)) 12/31/03

11. Reduction in certain deductions of 

mutual life insurance companies --

differential earning rates treated as zero 

(sec. 809(j)) 12/31/03

12. Qualified zone academy bonds --

allocations of bond authority 

(sec. 1397E(e)(1)) 12/31/03

13. 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 (secs. 1400B(b)(2), (3)(A), 

and (4)(A)(i))

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

homebuyers (sec. 1400C(i))

12/31/03

12/31/03

12/31/03

12/31/03

 

4

 A corresponding provision is contained in section 302(d)(7)(C)(i)(III) of the Employee 

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

2003.
4

Provision (Code section) Expiration Date

14. New York Liberty Zone: work 

opportunity tax credit (“WOTC”)

(sec. 1400L(a)(2)(D)(iv)(I)) 12/31/03

15. Disclosure of return information to 

inform officials of terrorist activities

(sec. 6103(i)(3)(C)(iv)) 12/31/03

16. Disclosure upon request of information 

relating to terrorist activities

(sec. 6103(i)(7)(E)) 12/31/03

17. 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)) 12/31/03

18. Joint Committee on Taxation annual 

report and annual joint hearings on IRS 

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

8022(3)(C)) 6/1/03 & 12/31/03

19. Tax on failure to comply with mental 

health parity requirements applicable to 

group health plans (sec. 9812(f))512/31/03

 

5

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

These provisions expire on December 30, 2004. See Mental Health Parity Reauthorization Act 

of 2003 (Pub. L. No. 108-197, December 19, 2003).
5

B. Provisions Expiring in 2004

Provision (Code section) Expiration Date

1. Tax credit for research and experimentation 

expenses (sec. 41(h)) 6/30/04

2. End point of 15-percent rate bracket for 

married taxpayers filing joint returns twice 

that of end point of 15-percent rate bracket 

for single taxpayers (sec. 1(f)(8)) 12/31/04

3. Increase in income level for end point 10-

percent rate bracket to $14,000 for married 

taxpayers filing joint returns and $7,000 for 

single taxpayers6 (sec. 1(i)(1)(B)) 12/31/04

4. Increase in child credit amount to $1,000 

(sec. 24(a)(2)) 12/31/04

5. Indian employment tax credit (sec. 45A(f)) 12/31/04

6. Increased AMT exemption amount 

(sec. 55(d)(1)) 12/31/04

7. Increase in the basic standard deduction for 

married taxpayers filing joint returns to 

twice the standard the basic standard 

deduction for single filers (sec. 63(c)(7)) 12/31/04

8. Accelerated depreciation for business 

property on an Indian reservation

(sec. 168(j)(8)) 12/31/04

9. Special depreciation allowance for 

qualifying property (sec. 168(k)(2)(A)(iv)) 12/31/047

 

6

 These dollar amounts are indexed for inflation for 2004.

7

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

with a recovery period of ten years or longer and certain transportation property.
6

Provision (Code section) Expiration Date

10. Enterprise communities designated in 

1994 (sec. 1391(b)(1)(d)) 12/31/048

11. New York Liberty Zone: tax exempt 

bond financing (sec. 1400L(d)(2)) 12/31/04

12. New York Liberty Zone: advance 

refunding of certain tax exempt bonds

(sec. 1400L(e)(1)) 12/31/04

13. Disclosure of return information to carry 

out income contingent repayment of 

student loans (sec. 6103(l)(13)(D))912/31/04

14. IRS user fees for a letter ruling, 

determination letter, opinion letter or 

other similar ruling or determination

(sec. 7528(c))10 12/31/04

 

8

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

and local governments provided for an expiration date in their nomination of an enterprise 

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

9

 Public Law 108-89, extended the statutory authorization for this type of disclosure 

through December 31, 2004 (Pub. L. No. 108-89, October 1, 2003).

10 Public Law 108-89 extended the statutory authorization for these user fees through 

December 31, 2004, and moved the statutory authorization for these fees into the Code 

(including the user fee provision relating to pension plans that was enacted in section 620 of 

EGTRRA).
7

C. 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. 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 gallon11 9/30/05

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))12

b. Tax on retail sale of heavy highway 

vehicles (sec. 4051(c))

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

d. Annual use tax on heavy highway 

vehicles (sec. 4481(e))

9/30/05

9/30/05

9/30/05

9/30/05

4. Partially exempt methanol or ethanol fuel

(sec. 4041(m))13 9/30/05

5. Puerto Rico economic activity tax credit 

(sec. 30A(h)) 12/31/05

6. Increase in expensing 

(sec. 179(b)(1) and (2)) 12/31/05

7. Deduction for qualified tuition and related 

expenses (sec. 222(e)) 12/31/05

 

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

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

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

ethanol, 2.15 cents-per-gallon and in any other case, 4.3 cents-per-gallon.
8

Provision (Code section) Expiration Date

8. Transfer of excess pension assets to retiree 

health accounts (sec. 420(b)(5)) 12/31/05

9. Puerto Rico and possession tax credit 

(sec. 936(j)(3)) 12/31/05

10. Authority for undercover operations 

(sec. 7608(c)(6)) 12/31/05
9

D. Provisions Expiring in 2006

Provision (Code section) Expiration Date

1. Credit for elective deferrals and individual 

retirement arrangement (“IRA”) 

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

2. Tax credit for qualified electric vehicles 

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

3. Deduction for clean-fuel vehicles and 

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

4. Special depreciation rule for certain cleanfuel passenger automobiles 

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

5. Exceptions under subpart F for active 

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

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

6. New York Liberty Zone: special 

depreciation allowance

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

7. New York Liberty Zone: five-year 

recovery period for depreciation of certain 

leasehold improvements

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

 

14 The credit phases down for vehicles placed in service after December 31, 2003. The 

credit is reduced by 25 percent in 2004, 50 percent in 2005, and 75 percent in 2006. No credit is 

available after 2006.

15 The deduction phases down for clean-fuel vehicles placed in service after December 

31, 2003. The deduction is reduced by 25 percent in 2004, 50 percent in 2005, and 75 percent in 

2006. No deduction is allowed for clean-fuel vehicles or refueling property after 2006.

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

date is December 31, 2009.
10

Provision (Code section) Expiration Date

8. New York Liberty Zone: increase in 

expensing under section 179

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

9. New York Liberty Zone: extension of 

replacement period for nonrecognition of 

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

 

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

date is December 31, 2009.
11

E. 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 jet fuel and 

noncommercial aviation gasoline

(secs. 4041(c), 4081(d), and 4091)18

b. Domestic and international air 

passenger ticket taxes (sec. 4261)

c. Air cargo tax (sec. 4271)

9/30/07

9/30/07

9/30/07

2. Reduced excise tax rates for alcohol fuels 

and alcohol fuels mixtures

(secs. 4041(b)(2) and (k), 4081(c)(8), and 

4091(c)(5)) 9/30/0719

3. Alcohol fuels income tax credits

(sec. 40(e)) 12/31/0720

4. New markets tax credit (sec. 45D(f)) 12/31/0721

5. FUTA surtax of 0.2 percent 

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

 

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

19 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.

20 The income tax credits 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.

21 The new markets tax credit limitation is reduced to zero on January 1, 2008.
12

F. Provisions Expiring in 2008

Provision (Code section) Expiration Date

1. Disclosure of tax return information for 

administration of certain veterans programs 

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

2. Reduced capital gain rates (sec. 1(h))22 12/31/08

3. Dividends of individuals taxed at capital 

gain rates (sec. 1(h))23 12/31/08

 

22 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”).

23 The expiration date is contained in section 303 of JGTRRA.
13

G. Provisions Expiring in 2009

Provision (Code section) Expiration Date

1. Empowerment zone tax incentives:

a. Increased exclusion of gain on the sale 

of qualified business stock of an 

empowerment zone business through 

12/31/14 (secs. 1202(a)(2)(C) and 

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

b. Empowerment zone tax-exempt bonds 

and employment credit (secs. 1394, 

1396, and 1391(d)(1)(A)(i))

b. Increased expensing under sec. 179

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

c. 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

12/31/0924

2. Renewal community tax incentives:

a. Zero-percent capital gains rate for 

investment in renewal communities for 

gains through 12/31/14 

(secs. 1400F(2)(A)(i), (3)(A), and 

(4)(A)(i))

b. Employment credit (sec. 1400H)

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

 

24 The empowerment zone tax incentives may expire earlier with respect to an 

empowerment zone if the State and local governments provided for an expiration date in their 

nomination of an empowerment zone, or the appropriate Secretary revokes an empowerment 

zone’s designation.
14

H. Provisions Expiring in 2010

Provision (Code section) Expiration Date

1. All provisions of the Economic Growth 

and Tax Relief Reconciliation Act of 

200125 12/31/10

 

25 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 

accelerates 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 these changes the same as the sunset applies to the EGTRRA provisions 

to which the changes relate.