The American Jobs Creation Act of 2004 () was a federal
tax act that repealed the export tax incentive (ETI), which had been declared illegal by the
World Trade Organization several times and sparked
retaliatory tariffs by the
European Union.
It also contained numerous
tax credits for agricultural and business institutions as well as the repeal of
excise tax
file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the Bunghole, bung of the beer barrel so when ...
es on both fuel and alcohol and the creation of tax credits for
biofuels
Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels, such as oil. According to the United States Energy Information Administration (E ...
.
The bill was introduced by Representative
Bill Thomas on June 4, 2004, passed the
House
A house is a single-unit residential building. It may range in complexity from a rudimentary hut to a complex structure of wood, masonry, concrete or other material, outfitted with plumbing, electrical, and heating, ventilation, and air condi ...
June 17, the
Senate
A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the el ...
on July 15, and was signed by President
George W. Bush on October 22.
Summary of provisions
The
Office of Tax Analysis of the
United States Department of the Treasury summarized the tax changes as follows:
* created deduction for income from U.S. production activities
* repealed exclusion for extraterritorial income
* changed interest expense allocation rules
A report by the
Tax Policy Center identifies the following main provisions and their costs over a period of 10 years:
* repeal of the ETI over a 3 year period including transitional relief; expected to produce $49 billion in revenue
* U.S. production tax breaks of 9% of income from domestic production, with an expected cost of $77 billion
* assorted business tax relief provisions costing $7 billion
* international tax changes for a cost of $43 billion
* miscellaneous revenue generating provisions with a projected gain of $82 billion
* temporarily allowed taxpayer deduction of state and local sales taxes
Another provision revised the definition of the term "covered expatriate" which sets net worth andi income tax liability thresholds used to determine if a person who renounces his/her U.S. citizenship must pay an
expatriation tax.
See also
*
Extraterritorial income exclusion
*
Foreign Sales Corporation
*
Domestic international sales corporation The domestic international sales corporation is a concept unique to tax law in the United States. In 1971, the U.S. Congress voted to use U.S. tax law to subsidize exports of U.S.-made goods. The initial mechanism was through a Domestic Internati ...
References
External links
Full text of the Act
{{Authority control
United States federal taxation legislation
Acts of the 108th United States Congress
Presidency of George W. Bush
2004 in economics