American Jobs Creation Act of 2004
|Long title||An Act To amend the Internal Revenue Code of 1986 to remove impediments in such Code and make our manufacturing, service, and high-technology businesses and workers more competitive and productive both at home and abroad|
|Enacted by||the 108th United States Congress|
|Public law||Pub.L. 108–357 (text) (PDF)|
|Statutes at Large||118 Stat. 1418–1660|
|Acts amended||Internal Revenue Code of 1986|
The American Jobs Creation Act of 2004 (Pub.L. 108–357 (text) (PDF)) was a federal tax act that repealed the export tax incentive (ETI), which had been declared illegal by the World Trade Organization several times and sparked retaliatory tariffs by the European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 taxes on both fuel and alcohol and the creation of tax credits for biofuels.
Summary of provisions
- created deduction for income from U.S. production activities
- repealed exclusion for extraterritorial income
- changed interest expense allocation rules
- 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.
- Extraterritorial income exclusion
- Foreign Sales Corporation
- Domestic international sales corporation
- Clausing, Kimberly A. (December 2004). "The American Jobs Creation Act of 2004: Creating Jobs for Accountants and Lawyers" (PDF). Urban-Brookings Tax Policy Center. Archived (PDF) from the original on 31 December 2010. Retrieved 26 December 2010.
- "Bill Summary & Status: Public Law No: 108-357". Library of Congress: Thomas. October 22, 2004. Archived from the original on 3 July 2016. Retrieved 26 December 2010.
- Jerry Tempalski (September 2006). "Revenue Effects of Major Tax Bills" (PDF). Office of Tax Analysis. United States Department of the Treasury. p. 12. Working Paper 81. Archived from the original (PDF) on November 22, 2010. Retrieved 26 December 2010.