Tax Alert

President Signs Tax Relief Act

(Dec. 20, 2010)

 

Late in the evening of Dec. 16, 2010, the U.S. House of Representatives passed without amendment the Senate-approved H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, by a vote of 277–148. President Barack Obama signed the bill into law on Dec. 17, 2010.

The legislation extends expiring and expired tax provisions and offers some new tax cuts. It includes a two-year extension of the Bush tax cuts; a 2 percent cut to the employee portion of the payroll tax liability for 2011; a provision permitting 100 percent bonus depreciation for assets placed in service from Sept. 9, 2010, to Dec. 31, 2011; and an extension of the estate tax into 2011 and 2012, with an exemption level of $5 million and a maximum tax rate of 35 percent. 



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