TaxNewsFlash-United States

November 3, 2009
No. 2009-493

PRINTABLE VERSION

Legislative Update: JCT Description, Revenue Estimate of Unemployment Compensation Bill (Pending in the Senate)

The Senate on November 4 passed The Worker, Homeownership, and Business Assistance Act of 2009 (as referenced below).

The Joint Committee on Taxation (JCT) today released a technical explanation and revenue estimate of the provisions in The Worker, Homeownership, and Business Assistance Act of 2009—a bill currently pending in the Senate, that would provide for the temporary extension of unemployment compensation and approximately $21 billion in tax relief measures, that are fully offset.

The Senate, where there is broad support, may vote on the bill as soon as Wednesday, November 4. House Majority Leader Steny Hoyer (D-MD) said today that the House is ready to take up the bill as soon as the Senate passes it.

For an electronic version of the JCT technical explanation: JCX-44-09

For an electronic version of the JCT revenue estimate: JCX-45-09

Overview of Provisions

The bill would:

Extend and modify the first-time homebuyer credit to purchases of a principal residence by an individual taxpayer before May 1, 2010
Increase the carryback period for net operating losses (NOLs) arising in either 2008 or 2009 of certain taxpayers to five years (with some limitations)
Delay implementation of worldwide interest allocation until tax years beginning after December 31, 2017
Increase the penalty amounts for failures to file partnership and S corporation returns
Increase the required amounts of corporate estimated taxes for certain large taxpayers for payments due in July, August, and September 2014 by 33%

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