Vote Smart's Synopsis:

Vote to pass a bill that extends tax cuts that were previously set to expire beginning in 2005 through 2010.

Highlights:

• Creates the "Gulf Opportunity Zone" to provide tax benefits and emergency tax relief to those affected by Hurricane Katrina (Secs. 101-103).

• Extends multi-year extensions on provisions set to expire, such as "increased expensing for small businesses," "credit for elective deferrals and IRA contributions," and "modification of new markets tax credit" and extends the qualified education tax credit until 2009 (Secs. 201-204).

• Extends several tax provisions by a period of one year, including the alternative minimum tax exemption amount for individuals, the provision of tax credits for the purpose of research expenses and funding, and tax incentives for investment in the District of Columbia (Secs. 210-223).

• Allows non-itemizers to subtract certain charitable donations from taxable income (Sec. 301).

• Amends the existing tax code by adding a clause that make charitable distributions from individual retirement plans tax-free (Sec. 302).

• Modifies the Katrina Emergency Tax Relief Act of 2005 concerning tax deductions for the charitable contribution of food and books for educational purposes (Secs. 301-303).

• Adds a clause that requires any tax-exempt organization that enters into a prohibited tax shelter transactions to disclose information to the Internal Revenue Service (IRS) and pay an excise tax (Sec. 311).

• Increases the penalty excise tax on public charities, social welfare organizations and private foundations that are found to partake in self-dealing and excess benefit transactions (Sec. 313).

• Adds new provisions regarding charitable contributions of buildings in registered historic districts (Sec. 314).

• Sets valuation limitations on the deductions allowed for charitable contributions of clothing and household items to appropriated values or 20 percent of predetermined values, depending on condition (Sec. 317).

• Restructures New York Liberty Zone tax credits to provide credits to any governmental unit of the state or city of New York for money spent on any transportation infrastructure projects in the New York Liberty Zone (Sec. 401).

• Waives the user fee for any taxpayer who enters into an automatic tax installment payment plan (Sec. 521).

• Increases the maximum fines and imprisonment for tax fraud (Sec. 531).

• Increases penalties for "bad" checks and money orders (Sec. 535).

• Revises provisions for the taxation of expatriates (Secs. 541-2).

• Increases taxes on large oil companies whose worldwide production is more than 500,000 barrels a day (Sec. 562).

Full Bill Text

Full Bill Text