Mandatory Funding Levels for the FY 2012 President’s Budget – Treasury Chapter 

Mandatory Funding Levels for the FY 2012 President's Budget - Treasury Chapter 

(dollars in millions) 

Appropriations (Dollars in Millions) FY 2010 FY 2011 FY 2012 Increase/ Increase/ 

Enacted Estimate Estimate Decrease Decrease 

INTEREST PAYMENTS: 392,788 397,056 433,349 $36,293 9.1%

MANDATORY ACCOUNTS: 

 Terrorism Insurance Program 3 457 474 $17 3.7%

 GSE Mortgage-Backed Securities Purchase Program 29 2,792 17 -$2,775 -99.4%

 Office of Financial Stability 406 394 311 -$83 -21.1%

 Troubled Asset Relief Program (TARP) 23 1,556 0 -$1,556 -100.0%

 Troubled Asset Relief Program Equity Purchase Program 4,558 330 0 -$330 -100.0%

 Troubled Asset Relief Program Home Affordable Modification Program 164 0 0 $0 0.0%

 Grants to States for Low-Income Housing Projects 3,054 123 450 $327 265.9%

 Grants for Specified Energy Property 4,293 4,754 6,838 $2,084 43.8%

 Small Business Lending Fund Program Account 0 1,315 73 -$1,242 -94.4%

 State Small Business Credit Initiative 1,500 0 0 $0 0.0%

 Community Development Financial Institution Fund Program Account 2 4 0 -$4 -100.0%

 Presidential Election Campaign Fund 41 38 36 -$2 -5.3%

 Office of Financial Research 0 41 82 $41 100.0%

 Treasury Forfeiture Fund 1,083 1,017 1,214 $197 19.4%

 Biomass Energy Development -7 -6 -20 -$14 0.0%

 Payment to Terrestrial Wildlife Habitat Restoration Trust Fund 5 0 0 $0 0.0%

 Debt Collection Special Fund (FMS) 58 63 64 $1 1.6%

 Financial Agent Services 590 603 606 $3 0.5%

 Payment to FRA for AMTRAK Debt Restructuring 0 52 176 $124 238.5%

 Federal Reserve Bank Reimbursement 304 321 321 $0 0.0%

 Claims, Judgments and Relief Acts 1,119 4,528 2,692 -$1,836 -40.5%

 Check Forgery Insurance Fund 0 3 2 -$1 -33.3%

 Continued Dumping and Subsidy Offset 109 0 0 $0 0.0%

 Cheyenne River Sioux Tribe Terrestrial Wildlife Habitat Restoration 14 0 0 $0 0.0%

 Internal Revenue Collections for Puerto Rico 378 574 510 -$64 -11.1%

 Reimbursement to Federal Reserve Banks 103 121 126 $5 4.1%

 Payment of Government Losses in Shipment 0 1 1 $0 0.0%

 Payment Where Recovery Rebate Exceeds Liability for Tax 81 0 0 $0 0.0%

 Payment Where Earned Income Credit Exceeds Liability for Tax 54,712 44,940 46,495 $1,555 3.5%

 Payment Where Child Credit Exceeds Liability for Tax 22,659 22,924 25,136 $2,212 9.6%

 Payment Where Health Coverage Tax Credit Exceeds Liability for Tax 205 185 195 $10 5.4%

 Payment where Alternative Minimum Tax Credit Exceeds Liability for Tax 1,034 605 40 -$565 -93.4%

 Payment where Tax Credit to Aid First-Time Homebuyers Exceeds Liability for Tax 8,668 7,348 0 -$7,348 -100.0%

 Payment where Certain Tax Credit Exceeds Liability for Tax 86 32 0 -$32 -100.0%

 Payment Where American Opportunity Credit Exceeds Liability for Tax 3,851 3,861 4,416 $555 100.0% 

 Making Work Pay Tax Credit 13,694 13,876 0 -$13,876 -100.0%

 Build American Bond Payments, Recovery Act 1,376 2,814 3,589 $775 27.5%

 Payment Where COBRA Credit Exceeds Liability for Tax 3,857 2,987 220 -$2,767 -92.6%

 Payment Where Tax Credit for Certain Government Retirees Exceeds Liability for Tax 46 0 47 $47 0.0%

 Payment to Issuer of Qualified Zone Academy Bonds 0 13 24 $11 84.6%

 Payment to Issuer of Qualified School Construction 0 464 849 $385 83.0%

 Payment to Issuer of New Clean Renewable Energy Bonds 0 13 24 $11 84.6%

 Payment to Issuer of Qualified Energy Conservation Bonds 0 26 47 $21 80.8%

 Payment Where Adoption Credit Exceeds Liability for Tax 0 940 410 -$530 -56.4%

 Payment Where Small Business Health Insurance Tax Credit Exceeds Liability for Tax 0 182 259 $77 42.3%

 Therapeutic Discovery Program Grants and Administration 5 985 4 -$981 -99.6%

 IRS Miscellaneous Retained Fees 290 254 259 $5 2.0%

 IRS Informant Payments 19 18 25 $7 38.9%

 Offsets: 

 GSE Mortgage-Backed Securities Direct Loans, Negative Subsidies -1,214 -227 0 $227 -100.0%

 GSE, Mortgage-Backed Securities Direct Loans, Downward Reestimate -8,392 -467 0 $467 -100.0%

 Troubled Asset Relief Program, Negative Subsidies -2,336 -1,579 0 $1,579 -100.0%

 Troubled Asset Relief Program, Downward Reestimates of Subsidies -116,557 -43,475 0 $43,475 -100.0%

 Proceeds, GSE Equity Related Transactions -12,142 -17,492 -21,040 -$3,548 20.3%

 Other Offsets -1,824 -4,043 -5,990 -$1,947 48.2%

 Subtotal Offsets: -142,465 -67,283 -27,030 $40,253 -59.8%

 Subtotal, MANDATORY ACCOUNTS -$14,053 $54,265 $68,996 $14,731 27.1%

TOTAL, DEPARTMENT OF THE TREASURY $378,735 $451,321 $502,345 $51,024 11.3%
Total Treasury Department Mandatory 

Budget 

Interest Payments – $433.3 billion 

These are permanent, indefinite funds for interest 

payments. 

Mandatory Accounts – $69 billion 

These are special accounts for which the Congress 

has given the Department of Treasury permanent 

authority to expend funds as appropriations. 

Offsetting Collections – $27.1 billion 

Treasury receipts from other government agencies 

and private sources are subtracted from the total 

Treasury budget as an offset. 

Interest Payments 

These payments include: 

• Interest on the Public Debt - including all 

interest paid on Treasury securities sold to 

the public (e.g., foreign and domestic 

financial institutions, individuals, insurance 

companies, state and local governments, 

etc.) and to Federal Government trust funds, 

revolving funds and deposit funds. 

• Refunding Internal Revenue Collections - as 

provided in 26 U.S.C. 6611, interest, 

compounded daily, is paid on Internal 

Revenue collections that must be refunded. 

• Interest on Uninvested Funds - interest paid 

on certain uninvested funds placed in trust in 

the Treasury in accordance with various 

statutes (31 U.S.C. 1321; 2 U.S.C. 158 (P.L. 

94-289); 20 U.S.C. 74a (P.L. 94-418) and 

101; 24 U.S.C. 46 (P.L. 94-290; and 69 Stat. 

533). 

• Interest paid to Credit Financing Accounts - 

Interest on invested balances is paid to the 

financing accounts from the general fund of 

the Treasury, in accordance with section 

505(c) of the Federal Credit Reform Act of 

1990 (FCRA). 

• Federal Interest Liabilities to the States -

Pursuant to the Cash Management 

Improvement Act (P.L. 101-453, 104 Stat. 

1058) as amended (P.L. 102-589, 106 Stat. 

5133), and Treasury implementing 

regulations codified at 31 CFR Part 205, 

under certain circumstances, interest is paid 

to States when Federal funds are not 

transferred to States in a timely manner. 

• Payment to the Resolution Funding Corp - 

The Financial Institutions Reform, 

Recovery, and Enforcement Act of 1989 

authorized and appropriated to the Secretary 

of the Treasury, such sums as may be 

necessary to cover interest payments on 

obligations issued by the Resolution 

Funding Corporation (REFCORP). 

REFCORP was established under the Act to 

raise $31.2 billion for the Resolution Trust 

Corporation (RTC) in order to resolve 

savings institution insolvencies. 

Permanent Authority Appropriations 

Terrorism Risk Insurance Program 

The Terrorism Risk Insurance Extension Act of 

2007 (P.L. 110-160) reauthorized the program 

established by the Terrorism Risk Insurance Act 

(TRIA) of 2002 (P.L. 107-297). The 2007 Act 

extended the Terrorism Insurance Program for 

seven years, through December 31, 2014. 

GSE Mortgage-Backed Securities 

Purchase Program 

The authority for all of the programs displayed in 

this account was provided in Section 1117 of the 

Housing and Economic Recovery Act of 2008 

(P.L. 110-289) and expired on December 31, 

2009. As required by FCRA, this account records 

the subsidy costs associated with the GSE MBS 

and State HFA purchase programs. The subsidy 

amounts are estimated on a present value basis. 

Office of Financial Stability 

The Emergency Economic Stabilization Act 

(EESA) of 2008 (P.L. 110-343) authorized the 

establishment of the Troubled Asset Relief 

Program (TARP) and the Office of Financial 

Stability (OFS) to purchase and insure certain 
types of troubled assets for the purpose of 

providing stability to and preventing disruption in 

the economy and financial systems and protecting 

taxpayers. The Act gives the Treasury Secretary 

broad and flexible authority to purchase and insure 

mortgage and other troubled assets, as well as 

inject capital by taking limited equity positions, as 

needed to stabilize the financial markets. This 

account provides for the administrative costs for 

the OFS. 

Troubled Asset Relief Program (TARP) 

As authorized by the Emergency Economic 

Stabilization Act of 2008 (EESA) (P.L. 110-343) 

and required by the Federal Credit Reform Act of 

1990, as amended, this account records the 

subsidy costs associated with the TARP direct 

loans obligated and loan guarantees (including 

modifications of direct loans or loan guarantees 

that resulted from obligations or commitments in 

any year). The direct loan programs serviced by 

this account include the Automotive Industry 

Financing Program (AIFP), Term-Asset Backed 

Securities Loan Facility (TALF), Public-Private 

Investment Program (PPIP) and the Small 

Business Lending Initiative (SBLI). The 

guaranteed loan commitments that were serviced 

by this account include the Asset Guarantee 

Program (AGP). 

The Dodd-Frank Wall Street Reform Act, enacted 

on July 21, 2010, reduced TARP authority to 

purchase troubled assets from $700 billion to $475 

billion; required that repayments of amounts 

invested under TARP cannot be used to increase 

purchase authority and are dedicated to reducing 

the Federal debt; and prohibited new obligations 

for any program or initiative that had not been 

initiated by June 25, 2010. 

The authority to make new financial commitments 

via the TARP expired on October 3, 2010 under 

the terms of EESA. However, Treasury can 

continue to execute commitments entered into 

before October 3rd, 2010. 

TARP Equity Purchase Program 

As authorized by the Emergency Economic 

Stabilization Act of 2008 (EESA) (P.L. 110-343) 

and required by the Federal Credit Reform Act of 

1990, as amended, this account records the 

subsidy costs associated with TARP equity 

purchase obligations (including modifications of 

equity purchases that resulted from obligations in 

any year). The equity purchase programs serviced 

by this account include the American International 

Group Investment Program (AIGP), Targeted 

Investment Program (TIP), Automotive Industry 

Financing Program (AIFP), Public-Private 

Investment Program (PPIP), Community 

Development Capital Initiative (CDCI), and the 

Capital Purchase Program (CPP). 

TARP Home Affordable Modification 

Program 

The Making Home Affordable (MHA) Program 

was launched in March 2009 under the authority 

of Sections 101 and 109 of the Emergency 

Economic Stabilization Act of 2008, as amended 

(P.L. 110-343) (EESA). The centerpiece of MHA 

is the Home Affordable Modification Program 

(HAMP) which offers affordable and sustainable 

mortgage modifications to responsible 

homeowners at risk of losing their homes to 

foreclosure. 

Complementing HAMP are other MHA programs 

to provide temporary mortgage payment relief to 

unemployed borrowers; to increase affordability 

by modifying second mortgages when a 

corresponding first mortgage is modified under 

HAMP; to assist borrowers whose loans are highly 

overleveraged by encouraging servicers to reduce 

principal; and for borrowers who are unable to 

retain homeownership, provide a transition to 

more affordable housing through a short sale or 

deed-in-lieu of foreclosure. Funds under EESA are 

also supporting an FHA refinance option that 

allows overleveraged homeowners to refinance 

into a new FHA-insured loan if their existing 

mortgage holders agree to a short refinance and to 

write down principal. 

Grants to States for Low-Income 

Housing Projects 

Section 1602 of the American Recovery and 

Reinvestment Act of 2009 (Recovery Act) 

authorized and directed the Secretary of the 

Treasury to establish payments to States for lowincome housing projects in lieu of low-income 

housing tax credits (LIHTC). This account 

presents the estimated disbursements for this 
program. 

The program provides payments to State housing 

credit agencies to make sub-awards to finance the 

construction or acquisition and rehabilitation of 

qualified low-income housing in the same manner 

and generally subject to the same limitations as 

LIHTCs allocated under section 42 of the Internal 

Revenue Code (IRC) through December 31, 2011. 

The Recovery Act specifies that the exchange of 

credits for cash payments applies only to the 2009 

LIHTC ceiling under IRC 42(h)(3)(C), and that 

states may elect to exchange credits for cash 

payments subject to the requirements and 

limitations provided in Division B, sections 1404 

& 1602 of the Recovery Act. 

Grants for Specified Energy Property 

Section 1603 of the American Recovery and 

Reinvestment Act of 2009 authorized and directed 

the Secretary of the Treasury to establish 

payments in lieu of tax credits for taxpayers that 

place in service qualifying renewable energy 

facilities. This account presents the estimated 

disbursements for this program. 

Payments are available for property placed in 

service in 2009, 2010 or 2011. In some cases, if 

construction begins in 2009, 2010, or 2011, the 

payment can be claimed for property placed in 

service before 2013, 2014 or 2017. In general, 

projects that meet eligibility criteria for the energy 

property investment tax credit are eligible for the 

payments. The Tax Relief, Unemployment 

Insurance Reauthorization and Job Creation Act of 

2010 (Public Law 111-312), Section 707(a), 

extended through 2011, the time within which 

certain eligible property must be placed on service 

or start construction. 

Small Business Lending Fund (SBLF) 

Program Account 

Enacted as part of the Small Business Jobs and 

Credit Act of 2010 (P.L. 111-240), the SBLF is 

designed to increase the availability of credit to 

small businesses by providing capital to eligible 

financial institutions with assets of less than $10 

billion. The dividend or interest rate a bank pays 

for SBLF funding will be reduced as the 

institution's qualified small business lending 

increases. Because banks leverage their capital, the 

Small Business Lending Fund could help increase 

lending to small businesses in amounts that are 

multiples of the total capital provided to 

participating institutions. The account totals also 

include the costs of administering the program. 

State Small Business Credit Initiative

Section 3003 of the Small Business Jobs and 

Credit Act of 2010 (P.L. 111-240) authorizes and 

directs the Secretary of Treasury to establish a 

seven-year State Small Business Credit Initiative 

(SSBCI). This account represents the 

appropriation in the amount of $1.5 billion to be 

used by the U.S. Department of the Treasury to 

provide direct support to States for use in 

programs designed to increase access to credit for 

small businesses. Additionally, this appropriation 

includes reasonable costs of administering the 

program and less than three percent has been 

allocated for the administration over the life of the 

program. 

Community Development Financial 

Institutions Fund Program Account 

The balance of the funds is received from CDFI 

dividend and investment income. The CDFI Fund 

intends to fund the Award Management 

Information System modernization effort with 

these funds. 

Presidential Election Campaign Fund 

Individual Federal income tax returns include an 

optional Federal income tax designation of $3 that 

an individual may elect to be paid to the 

Presidential Election Campaign Fund (PECF). 

Approximately every four years, the Department 

of the Treasury makes distributions from the 

PECF to qualified Presidential candidates and 

national party committees for use in the 

Presidential elections. 

Office of Financial Research and the 

Financial Stability Oversight Council 

The Financial Stability Oversight Council (FSOC) 

and Office of Financial Research (OFR) were 

established under the Dodd-Frank Wall Street 

Reform and Consumer Protection Act of 2010 

(Public Law 111-203). FSOC's purpose is to 

identify risks to the financial stability of the 
United States, promote market discipline, and 

respond to emerging threats to the stability of the 

U.S. financial system. OFR's purpose is to support 

FSOC by collecting data on behalf of FSOC, 

developing and promoting data standards, 

conducting research, and developing tools for risk 

measurement and monitoring. Through July 21, 

2012, FSOC and OFR are funded through transfers 

from the Board of Governors of the Federal 

Reserve System. After July 21, 2012, FSOC and 

OFR will be funded through assessments on bank 

holding companies with total consolidated assets 

of $50 billion or more and nonbank financial 

companies supervised by the Board of Governors. 

Treasury Forfeiture Fund 

Non-tax forfeitures made by participating bureaus 

of the Department of the Treasury and the 

Department of Homeland Security are deposited 

into the Fund. This revenue is available to pay or 

reimburse certain costs and expenses related to 

seizures and forfeitures that occur pursuant to laws 

enforced by the bureaus and other expenses 

authorized by 31 U.S.C. 9703. Upon notification 

of Congress, revenue can also be used to fund law 

enforcement related activities based on requests 

from member bureaus and evaluation by the 

Secretary of the Treasury. 

Biomass Energy Development 

This account provides loan guarantees for the 

construction of biomass-to-ethanol facilities, as 

authorized under Title II of the Energy Security 

Act of 1980. All of the loans guaranteed by this 

account went into default. The guarantees have 

been paid off, and the assets of all but one of the 

projects have been liquidated. The one remaining 

project entered into a Forbearance agreement with 

DOE in April 2009. Quarterly payments may 

resume after March 2011. 

Payment to Terrestrial Wildlife Habitat 

Restoration Trust Fund 

Section 604(b) of the Water Resources 

Development Act of 1999 (P.L. 106-53) requires 

that the Secretary of the Treasury, beginning in 

1999, deposit $5 million annually (74 percent into 

the Cheyenne River Sioux Tribe Terrestrial 

Wildlife Restoration Trust Fund and 26 percent 

into the Lower Brule Sioux Tribe Terrestrial 

Wildlife Restoration Trust Fund) until a total of at 

least $57.4 million has been deposited. After the 

funds are fully capitalized by deposits from the 

general fund of the Treasury, interest earned will 

be available to the Tribes to carry out the purposes 

of the funds. Full capitalization occurred in FY 

2010; therefore no additional deposits will be 

provided by the general fund of the Treasury. 

Tribes are now able to draw down on the interest 

earned from these investments. 

Debt Collection Special Fund 

Under current law, when the Financial 

Management Service (FMS) levies a payment to 

collect a delinquent tax debt referred by the 

Internal Revenue Service (IRS), the IRS pays a fee 

out of its annual appropriation to FMS to process 

the transaction. The Budget proposes to instead 

have the debtor pay the transaction costs in 

addition to their original debt. This would allow 

the IRS to refer all appropriate tax debts for offset, 

maximize revenue, and shift the cost of 

enforcement to delinquent debtors. These 

schedules reflect the elimination of discretionary 

spending and collections as a result of this 

proposal. 

Financial Agent Services 

This account reimburses financial institutions for 

the services they provide as depositaries and 

financial agents of the Federal Government. The 

services provided are authorized under statutes 

including, but not limited to, 12 U.S.C. 90 and 

265. Additionally, financial agent and financial 

analysis costs for the Government Sponsored 

Enterprise Mortgage Backed Securities Purchase 

Program and State Housing Finance Agency 

program are reimbursed from this account. 

Payment to FRA for AMTRAK Debt 

Restructuring 

The Passenger Rail Investment and Improvement 

Act (PRIIA) of 2008 (Section 205), enacted 

October 16, 2008, provides that the Secretary of 

the Treasury, in consultation with the Secretary of 

Transportation and the National Railroad 

Passenger Corporation (Amtrak), may make 

agreements to restructure (including repay) 

Amtrak's indebtedness, including leases, 

outstanding as of the date of enactment of PRIIA. 
This authorization expired two years after the date 

of enactment. 

Federal Reserve Bank Reinvestment 

This fund was established by the Treasury and 

General Government Appropriations Act, 1998, 

Title I, (P.L. 105-61, 111 Stat. 1276) as a 

permanent, indefinite appropriation to reimburse 

Federal Reserve Banks for services provided in 

their capacity as depositaries and fiscal agents for 

the United States. 

Claims, Judgments and Relief Acts 

Appropriations are made for cases in which the 

Federal Government is found by courts to be liable 

for payment of claims and interest for damages not 

chargeable to appropriations of individual 

agencies, and for payment of private and public 

relief acts. Public Law 95-26 authorized a 

permanent, indefinite appropriation to pay certain 

judgments from the general funds of the Treasury. 

Check Forgery Insurance Fund 

This fund was established to maintain the Check 

Forgery Insurance Fund. The Fund facilitates 

timely payments for replacement Treasury checks 

necessitated due to a claim of forgery. Public Law 

108-447 expanded the use of the fund to include 

payments made via electronic funds transfer. A 

technical correction to the Fund's statutes to ensure 

and clarify that the Fund can be utilized as a 

funding source for relief of administrative 

disbursing errors was enacted by section 119 of 

Division D of Public Law 110-161. 

Continued Dumping and Subsidy Offset 

The Bureau of Customs and Border Protection, 

Department of Homeland Security, collects duties 

assessed pursuant to a countervailing duty order, 

an antidumping duty order, or a finding under the 

Antidumping Act of 1921. Under a provision 

enacted in 2000, the Bureau of Customs and 

Border Protection, through the Treasury, 

distributes these duties to affected domestic 

producers. The authority to distribute assessments 

collected after October 1, 2007 was repealed. 

Assessments collected before October 1, 2007 will 

be disbursed as if the authority had not been 

repealed. 

Cheyenne River Sioux Tribe Terrestrial 

Wildlife Habitat Restoration 

This schedule reflects the payments made to the 

Cheyenne River Sioux Tribe Terrestrial Wildlife 

Restoration Trust Fund and the Lower Brule Sioux 

Tribe Terrestrial Wildlife Restoration Trust Fund. 

Federal Financing Bank

The Federal Financing Bank (FFB) was created in 

1973 to reduce the costs of certain Federal and 

federally assisted borrowing and to ensure the 

coordination of borrowing in a manner least 

disruptive to private financial markets and 

institutions. FFB loans are also used to finance 

direct agency activities such as construction of 

Federal buildings, activities of the U.S. Postal 

Service, and the financial stabilization initiatives 

of the National Credit Union Administration. 

Internal Revenue Collections for 

Puerto Rico

Excise taxes collected under the Internal Revenue 

laws of the United States on articles produced in 

Puerto Rico and either transported to the United 

States or consumed on the island are paid to 

Puerto Rico (26 U.S.C. 7652). 

Reimbursement to Federal Reserve 

Banks 

This fund was established by the Treasury, Postal 

Service and General Government Appropriations 

Act of 1991 (P.L. 101-509, 104 Stat. 1394) to 

allow the Bureau of the Public Debt to reimburse 

the Federal Reserve Banks for acting as fiscal 

agents of the Federal Government in support of 

financing the public debt. 

Payment of Government Losses in 

Shipment

This account was created as self-insurance to 

cover losses in shipment of Government property 

such as coins, currency, securities, certain losses 

incurred by the Postal Service, and losses in 

connection with the redemption of savings bonds. 
Payment Where Recovery Rebate 

Exceeds Liability for Tax 

The Economic Stimulus Act of 2008 (Public Law 

110-185), Section 101, allowed for the issuance of 

tax rebates (economic stimulus payments) to 

certain eligible taxpayers through December 31, 

2008. This was a one-time benefit provided to 

taxpayers to stimulate the economy. Additionally, 

in 2009 the rebate was provided to taxpayers who 

did not receive the full economic stimulus 

payment in 2008 and whose circumstances may 

have changed. No outlays are expected from this 

account in 2012, as the one-time program is no 

longer active. 

Payment Where Earned Income Credit 

Exceeds Liability for Tax

As provided by law Public Law 94-12, there are 

instances wherein the Earned Income Tax Credit 

(EITC) exceeds the amount of tax liability owed 

through the individual income tax system, 

resulting in an additional payment to the taxpayer. 

The EITC was made permanent by the Revenue 

Adjustment Act of 1978 (Public Law 95-600). The 

Act has been amended in subsequent bills. 

The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1002, 

temporarily increased the EITC for working 

families with three or more children, and increased 

the threshold for the phase-out range for all 

married couples filing a joint return for 2009 and 

2010 tax returns. The Tax Relief, Unemployment 

Insurance Reauthorization, and Job Creation Act 

of 2010 (Public Law 111-312), Section 103(c), 

extended this temporary benefit for 2011 and 2012

tax returns. 

Payment Where Child Credit Exceeds 

Liability for Tax 

As provided by law, there are instances where the 

child tax credit exceeds the amount of tax liability 

owed through the individual income tax system, 

resulting in an additional payment to the taxpayer. 

The child credit was originally authorized by the 

Taxpayer Relief Act of 1997 (Public Law 105-34). 

The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1003, expanded 

the pool of eligible low-income earners. The Tax 

Relief, Unemployment Insurance Reauthorization, 

and Job Creation Act of 2010 (Public Law 111-

312), Section 103(b), extended this temporary 

benefit for 2011 and 2012. 

Payment Where Health Care Coverage 

Tax Credit Exceeds Liability for Tax 

The Trade Act of 2002 established the Health 

Coverage Tax Credit (HCTC), an advanceable, 

refundable tax credit for a portion of the cost of 

qualified insurance. This credit is available to 

certain recipients of Trade Adjustment Assistance 

(TAA) and Pension Benefit Guaranty Corporation 

pension beneficiaries who are aged 55-64. 

Congress expanded the program in the American 

Recovery and Reinvestment Act of 2009 (Public 

Law 111-5), Sections 1899A-1899J. Increased 

benefits for certain HCTC eligible individuals 

include payment of 80 percent (up from 65 

percent) of health insurance premiums, up to 24 

months of coverage for qualified family members, 

and extension of COBRA benefits. The Omnibus 

Trade Act of 2010 (Public Law 111-344), Sections 

111-118, extends these benefits until February 13, 

2011. 

Payment Where Alternative Minimum 

Tax Exceeds Liability for Tax 

The Tax Relief and Health Care Act of 2006 

(Public Law 109-432) allows certain taxpayers to 

claim a refundable credit for a portion of their 

unused long-term alternative minimum tax (AMT) 

credits each year. The Emergency Economic 

Stabilization Act of 2008 (Public Law 110-343), 

Division C, Section 103, increased the AMT 

refundable credit portion from 20 percent to 50 

percent of unused long-term minimum tax credits 

for the taxable year in question. 

Payment Where Tax Credit to Aid FirstTime Homebuyers Exceeds Liability for 

Tax 

The Housing and Economic Recovery Act of 2008 

(Public Law 110-289), Section 3011, provided a 

refundable tax credit of up to $7,500 for first-time 

homebuyers. Taxpayers who qualified were 

allowed a one-time credit against their income tax 

for principal residences purchased on or after 

April 9, 2008, and before July 1, 2009. They must 

repay the credit over a 15-year period. 
The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1006, expanded 

and extended the credit, and eliminated the 

repayment requirement. Qualifying taxpayers may 

claim up to $8,000 on either their 2008 or 2009 tax 

returns for qualifying 2009 purchases. The 

Worker, Homeownership, and Business Assistance 

Act of 2009 (Public Law 111-92), Section 12, 

extended the application from November 30, 2009 

to April 30, 2010. The Act modified the buyer's 

settlement date to June 30, 2010, if a buyer entered 

into a binding contract by April 30, 2010. The Act 

also provided a "long-time resident" credit of up to 

$6,500 to taxpayers who do not qualify as firsttime homebuyers. The Homebuyer Assistance and 

Improvement Act of 2010 (Public Law 111-198), 

Section 2, extended eligibility for the credit to any 

taxpayer who entered into a written binding 

contract before May 1, 2010, to close on the 

purchase of a principal residence before October 1, 

2010. This account provides resources for the 

portion, if any, of the refundable tax credit amount 

that exceeds the taxpayer's tax liability. 

Payment Where Certain Tax Credits 

Exceeds Liability for Corporate Tax 

The Housing and Economic Recovery Act of 2008 

(Public Law 110-289), Section 3081, allowed 

certain businesses to accelerate the recognition of 

a portion of their historic AMT or research and 

development (R&D) credits in lieu of taking bonus 

depreciation. The American Recovery and 

Reinvestment Act of 2009 (Public Law 111-5), 

Section 1201(b), extended this temporary benefit 

through 2009 and the Tax Relief, Unemployment 

Insurance Reauthorization, and Job Creation Act 

of 2010 (Public Law 111-312), Section 401(c), 

extended this temporary benefit for 2011 and 

2012. 

Payment Where American Opportunity 

Credit Exceeds Liability for Tax 

The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1004, allows 

certain taxpayers to claim a refundable Hope 

Scholarship Credit for qualifying higher education 

expenses, up to 40 percent. The credit applies 

dollar-for-dollar to the first $2,000 of qualified 

tuition, fees and course materials paid by the 

taxpayer, and applies at a rate of 25 percent to the 

next $2,000 in qualified tuition, fees and course 

materials for a total credit of up to $2,500. This tax 

credit is subject to a phase-out for high-income 

taxpayers. The Tax Relief, Unemployment 

Insurance Reauthorization, and Job Creation Act 

of 2010 (Public Law 111-312), Section 103(a), 

extended this credit for 2011 and 2012, and the 

2012 Budget proposes to make this credit 

permanent. 

Making Work Pay Tax Credit 

The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1001, allows 

certain taxpayers to claim a refundable Making 

Work Pay tax credit of 6.2 percent of earned 

income, up to $400 for single taxpayers and up to 

$800 for married couples filing joint returns. The 

refundable credit phases out for high-income 

taxpayers. The Making Work Pay credit is claimed 

by taxpayers when they file their 2009 and 2010 

returns, and in order to accelerate the credit, it is 

being delivered in small increments through 

reduced payroll withholding. 

Build American Bond Payments, 

Recovery Act 

The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1531, allowed 

State and local governments to issue Build 

America Bonds through December 31, 2010. 

These tax credit bonds, which include Recovery 

Zone Bonds, differ from tax-exempt governmental 

obligation bonds in two principal ways: (1) 

interest paid on tax credit bonds is taxable; and (2) 

a portion of the interest paid on tax credit bonds 

takes the form of a federal tax credit. The bond 

issuer may elect to receive a direct payment in the 

amount of the tax credit. 

Payment Where COBRA Credit 

Exceeds Liability for Tax 

COBRA gives workers who lose their jobs, and 

thus their health benefits, the right to purchase 

group health coverage provided by the plan under 

certain circumstances pursuant to Part 6 of Subtitle 

B of Title I of the Employee Retirement Income 

Security Act of 1974 (other than Section 609), 

Title XXII of the Public Health Service Act, 

Section 4980B of the Internal Revenue Code of 

1986 (other than under Subsection (f)(1) of such 
Section insofar as it relates to pediatric vaccines), 

or Section 8905(a) of 5 U.S.C., or under a State 

program that provides comparable continuation 

coverage. 

The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 3001, treated 

assistance eligible individuals who pay 35 percent 

of their COBRA premium as having paid the full 

amount. The Department of Defense 

Appropriation Act of 2010 (Public Law 111-118), 

Section 1010, extended the eligibility period for 

the program to February 28, 2010 and extended 

the duration period of the taxpayers' premium 

assistance coverage to 15 months. The Continuing 

Extension Act of 2010 (Public Law 111-157), 

Section 3, amended the American Recovery and 

Reinvestment Act of 2009 to extend the premium 

assistance for COBRA benefits through May 31, 

2010. 

Payment Where Tax Credit for Certain 

Government Retirees Exceeds Liability 

for Tax 

The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 2201, allowed 

certain federal and state retirees to claim a onetime refundable credit of up to $250 ($500 in the 

case of a joint return where both spouses are 

eligible individuals) 

Payment to Issuer of Qualified Zone 

Academy Bonds 

The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1522, extended 

and expanded the calendar year limitation for 

Qualified Zone Academy Bonds to 

$1,400,000,000 for 2009 and 2010. The Tax 

Relief, Unemployment Insurance Reauthorization, 

and Job Creation Act of 2010 (Public Law 111-

312), Section 758, extended the Qualified Zone 

Academy Bonds for 2011 and reduced the 

calendar year limitation to $400,000,000. 

The Hiring Incentives to Restore Employment Act 

(Public Law 111-147), Section 301, amends 

Section 6431 of the Internal Revenue Code of 

1986 by allowing issuers of Qualified Zone 

Academy Bonds to irrevocably elect to issue the 

bonds as specified tax credit bonds with a directpay subsidy, in the same manner as the Build 

America Bonds direct-pay subsidy. The issuer of 

such qualifying bonds will receive a direct interest 

payment subsidy from the Federal government. 

Bondholders will receive a taxable interest 

payment from the issuer in lieu of a tax credit. 

Payment to Issuer of Qualified School 

Construction Bonds 

The American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1521, created 

Qualified School Construction Bonds with a 

calendar year limitation of $11,000,000,000 for 

2009 and 2010 and zero after 2010. 

The Hiring Incentives to Restore Employment Act 

(Public Law 111-147), Section 301, amends 

Section 6431 of the Internal Revenue Code of 

1986 by allowing issuers of Qualified School 

Construction Bonds to irrevocably elect to issue 

the bonds as specified tax credit bonds with a 

direct-pay subsidy, in the same manner as the 

Build America Bonds direct-pay subsidy. The 

issuer of such qualifying bonds will receive a 

direct interest payment subsidy from the Federal 

government. Bondholders will receive a taxable 

interest payment from the issuer in lieu of a tax 

credit. 

Payment to Issuer of New Clean 

Renewable Energy Bonds 

The Emergency Economic Stabilization Act of 

2008 (Public Law 110-343), Section 107, created 

New Clean Renewable Energy Bonds; and the 

American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1111, increased 

the limitation on issuance of New Clean 

Renewable Energy Bonds by $1,600,000,000. 

The Hiring Incentives to Restore Employment Act 

(Public Law 111-147), Section 301, amends 

Section 6431 of the Internal Revenue Code of 

1986 by allowing issuers of New Clean 

Renewable Energy Bonds to irrevocably elect to 

issue the bonds as specified tax credit bonds with a 

direct-pay subsidy, in the same manner as the 

Build America Bonds direct-pay subsidy. The 

issuer of such qualifying bonds will receive a 

direct interest payment subsidy from the Federal 

government. Bondholders will receive a taxable 

interest payment from the issuer in lieu of a tax 

credit. 
Payment to Issuer of Qualified Energy 

Conservation Bonds 

The Emergency Economic Stabilization Act of 

2008 (Public Law 110-343), Section 301, created 

Qualified Energy Conservation Bonds; and the 

American Recovery and Reinvestment Act of 

2009 (Public Law 111-5), Section 1112, increased 

the limitation on issuance of qualified energy 

conservation bonds from $800,000,000 to 

$3,200,000,000. 

The Hiring Incentives to Restore Employment Act 

(Public Law 111-147), Section 301, amends 

Section 6431 of the Internal Revenue Code of 

1986 by allowing issuers of Qualified Energy 

Conservation Bonds to irrevocably elect to issue 

the bonds as specified tax credit bonds with a 

direct-pay subsidy, in the same manner as the 

Build America Bonds direct-pay subsidy. The 

issuer of such qualifying bonds will receive a 

direct interest payment subsidy from the Federal 

government. Bondholders will receive a taxable 

interest payment from the issuer in lieu of a tax 

credit. 

Payment Where Adoption Credit 

Exceeds Liability for Tax 

The Economic Growth and Tax Relief 

Reconciliation Act of 2001 (EGTRRA) (Public 

Law 107-16), Section 202, increased the 

maximum credit and exclusion to $10,000 

(indexed for inflation after 2002) for both nonspecial needs and special needs adoptions; 

increased the phase-out starting point to $150,000 

(indexed for inflation after 2002); and allowed the 

credit against the AMT. 

The Patient Protection and Affordable Care Act 

(Public Law 111-148), Section 10909, extended 

the EGTRRA expansion of the adoption credit and 

exclusion from income for employer-provided 

adoption assistance for one year (for 2011); 

increased by $1,000 to $13,170 per child (indexed 

for inflation) the maximum adoption credit and 

exclusion from income for employer-provided 

adoption assistance for two years (2010 and 2011); 

and made the credit refundable for two years 

(2010 and 2011), meaning that eligible taxpayers 

can get it even if they do not owe tax for that year. 

In general, the credit is based on the reasonable 

and necessary expenses related to a legal adoption, 

including adoption fees, court costs, attorney's fees 

and travel expenses. 

The Tax Relief, Unemployment Insurance 

Reauthorization, and Job Creation Act of 2010 

(Public Law 111-312), Section 101(b), for taxable 

years beginning after December 31, 2011, limits 

the adoption credit and employer-provided 

adoption assistance exclusion for special needs 

adoptions only; reduces the maximum credit and 

exclusion to $6,000; reduces the phase-out range 

to lower income levels (i.e., between $75,000 and 

$115,000); and does not index for inflation the 

maximum credit, exclusion, and phase-out range. 

Payment Where Small Business Health 

Insurance Tax Credit Exceeds Liability 

for Tax 

The Affordable Care Act (P.L. 111-148), Section 

1421, allows certain small businesses to claim a 

credit when they pay at least half of the health care 

premiums for single health insurance coverage for 

their employees. Small businesses can claim the 

credit for 2010 through 2013 and for any two 

years after that. Generally, employers that have 

fewer than 25 full-time equivalent employees and 

pay wages averaging less than $50,000 per 

employee per year may qualify for the credit. 

Therapeutic Discovery Program Grants 

and Administration 

The Affordable Care Act (Public Law 111-148), 

Section 9023, provides tax credits and grants to 

qualifying small entities that show significant 

potential to produce new and cost-saving 

therapies, support U.S. jobs, and increase U.S. 

competitiveness. Credits and grants are for 

qualifying investments made during a taxable year 

beginning in 2009 or 2010. The total amount of 

credits and grants that may be allocated under the 

program shall not exceed $1,000,000,000 for the 

2-year period beginning with 2009. This account 

also includes the administrative costs. 

IRS Miscellaneous Retained Fees 

As provided by law (26 U.S.C. 7801) the 

Secretary of the Treasury may establish new fees 

or raise existing fees for services provided by the 

IRS, where such fees are authorized by another 

law, and may spend the new or increased fee 
receipts to supplement appropriations made 

available to the IRS appropriations accounts. 

Funds in this account are transferred to other IRS 

appropriations accounts for expenditure. 

IRS Informant Payments 

As provided by law (26 U.S.C. 7623), the 

Secretary of the Treasury may make payments to 

individuals resulting from information given that 

leads to the collection of Internal Revenue taxes. 

The Taxpayer Bill of Rights of 1996 (Public Law 

104-168) provides for payments of such sums to 

individuals from the proceeds of amounts (other 

than interest) collected by reason of the 

information provided, and any amount collected 

shall be available for such payments. This 

provision was further amended by the Tax Relief 

and Health Care Act of 2006 (Public Law 109-

432) to encourage use of the program. 

Offsetting Collections 

In general, amounts collected by the Federal 

Government are classified in two major categories: 

Governmental receipts – Revenues that arise from 

the sovereign and regulatory powers unique to the 

Federal Government. They consist primarily of tax 

receipts, but also include customs duties, court 

fines, certain licenses, etc. All governmental 

receipts are deposited into receipt accounts. These 

receipts are always reported in total (rather than as 

an offset to budget authority and outlays). 

Offsetting receipts - Collections that are offset 

against the budget authority and outlays of the 

collecting agency rather than reflected as 

governmental receipts in computing budget totals. 

Offsetting receipts are comprised of: 

• Proprietary Receipts - These receipts from the 

public are market-oriented and are derived 

from activities operated as business-type 

enterprises. 

• Intragovernmental Receipts - These are 

collections from other governmental accounts 

deposited in receipt accounts. These are 

further classified as follows: 

• Interfund Receipts - These are amounts 

derived from payments between federal and 

trust funds. 

• Intrafund Receipts - These are amounts 

derived from payments within the same fund 

group (i.e., within the federal fund group or 

within the trust fund group).