SUMMARY AS OF: 3/7/2002
Job Creation and Worker Assistance Act of 2002
Title I:
Business Provisions
Amends the Internal Revenue Code (IRC) to allow an additional first year 30 percent depreciation allowance for property which has a recovery period of 20 years or less, is water utility property, or computer software, and which was acquired between September 10, 2001, and September 11, 2004, and is placed in service before January 1, 2005. Allows certain other property to qualify for such allowance under certain conditions if it has a recovery period of at least ten years or is transportation property.
(Sec. 102)
Extends the net operating loss carryback period from two to five years for such business losses arising between September 10, 2001, and September 11, 2004. Provides a temporary suspension of a specified limit on certain carryovers of such losses for purposes of an alternative tax deduction on them.
Title II:
Unemployment Assistance
Temporary Extended Unemployment Compensation Act of 2002 - Allows States to opt to enter into agreements for a program of temporary extended unemployment compensation (TEUC), which extends UC for up to an additional 13 weeks for individuals who have exhausted their 26 weeks of regular UC coverage.
(Sec. 202)
Sets forth TEUC program requirements for Federal-State agreements, coordination with other UC benefits, formulae for determining amounts in individual TEUC accounts and weekly benefits, payments to States, and financing.Requires the State agencies that opt to make TEUC agreements to make them to individuals who: (1) either first exhausted all rights to regular compensation under State or Federal law with respect to a benefit year (excluding any benefit year ending before March 15, 2001); and (2) do not have any rights to regular compensation under the State law of any other State, and are not receiving compensation under the unemployment compensation law of any other country.
(Sec. 208)
Applies TEUC agreements with States to weeks of unemployment: (1) beginning on or after the first day of the first week after the date on which such agreement is entered into; and (2) ending before January 6, 2003.
(Sec. 209)
Amends the Social Security Act to provide for a special transfer of funds in FY 2002 from the Federal unemployment account to State accounts in the Unemployment Trust Fund.
Title III:
Tax Incentives for New York City and Distressed Areas - Amends the IRC to expand work opportunity tax credit targeted categories to include certain New York Liberty Zone business employees, with respect to the period between September 10, 2001, and January 1, 2003, as members of a targeted group. Defines the Zone as the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York (NYC). Includes, under certain conditions, business employees of any trade or business located in NYC outside the Zone, as a result of the physical destruction or damage of such place of business by the September 11, 2001, terrorist attack.
(Sec. 301)
Includes a special allowance in the depreciation deduction for certain property in the Zone acquired after September 10, 2001.Provides a five-year recovery period for depreciation of certain leasehold improvement property in the Zone.Provides for the treatment of a qualified Zone bond as a tax-exempt facility bond. Requires such a bond to be issued for projects to acquire, build, rebuild, and renovate residential rental, nonresidential real, and public utility property in the Zone, or certain nonresidential real property elsewhere NYC if specified conditions are met.Provides for advance refunding of certain tax-exempt bonds used to finance facilities within NYC (or property functionally related and subordinate to facilities within NYC for the furnishing of water).Provides for an increase in IRC section 179 expensing allowed with respect to qualified NY Liberty Zone property placed in service during the taxable year.Extends from two years to five years the replacement period for nonrecognition of gain with respect to property which is compulsorily or involuntarily converted as a result of the terrorist attacks on September 11, 2001, in the Zone, if substantially all of the use of the replacement property is in NYC.Sets forth special rules to allow the Zone business employee credit against regular and minimum tax.
Title IV:
Miscellaneous and Technical Provisions
Subtitle A: General Miscellaneous Provisions - Amends IRC to allow electronic 1099 forms.
(Sec. 402)
Provides that income from the discharge of indebtedness of an S corporation that is excluded from the S corporation's income is not taken into account as an item of income by any shareholder and therefore does not increase the basis of any shareholder's stock in the corporation.
(Sec. 403)
Revises requirements concerning the nonaccrual experience method of accounting to make it available only for amounts to be received for the performance of qualified services (health, law, engineering, architecture, accounting, actuarial science, performing arts or consulting) and for services provided by certain small businesses.
(Sec. 404)
Allows the exclusion for foster care payments to apply to such payments made by qualified placement agencies (as well as by States and local governments).
(Sec. 405)
Amends IRC and the Employee Retirement Income Security Act of 1974 (ERISA) to set forth special rules for determining certain additional premium rates to be paid to the Pension Benefit Guaranty Corporation by defined benefit plans for specified plan years.
(Sec. 406)
Allows certain expenses of elementary and secondary school teachers to be taken into account in determining their adjusted gross income.Subtitle B: Technical Corrections - Makes technical corrections to various Acts, including the IRC, the Economic Growth and Tax Relief Reconciliation Act of 2001, the Community Renewal Tax Relief Act of 2000, the Tax Relief Extension Act of 1999, the Taxpayer Relief Act of 1997, and the Balanced Budget Act of 1997.
(Sec. 418)
Amends the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16) to revise provisions relating to increases in: (1) the adoption tax credit and exclusion for employer-provided adoption assistance; and (2) the dependent care tax credit.
Title V:
Social Security Held Harmless; Budgetary Treatment of Act
Provides that this Act shall have no impact on the Social Security trust funds.
(Sec. 502)
Designates certain amounts under this Act as emergency requirements under the Balanced Budget and Emergency Deficit Control Act of 1985.
Title VI:
Extensions of Certain Expiring Provisions - Extends various expiring IRC provisions, including:
- the allowance of nonrefundable personal credits against regular and minimum tax liability
- the credit for qualified electric vehicles
- the credit for electricity produced from certain renewable resources
- the work opportunity credit
- the welfare-to-work credit
- the deduction for clean-fuel vehicles and certain refueling property
- taxable income limit on percentage depletion for oil and natural gas produced from marginal properties
- qualified zone academy bonds
- cover over of tax on distilled spirits
- availability of medical savings accounts
- incentives for Indian employment and property on Indian reservations
- and a revised subpart F exemption for active financing
(Sec. 610)
Amends the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2002 (Public Law 107-116) to extend to health benefits or services furnished through December 31, 2003 (currently 2002) provisions of the Mental Health Parity Act of 1996 (which requires health plans, under ERISA and the Public Health Service Act, and IRC, with certain exceptions, to treat equally for mental and physical health coverage their limits on annual payments and on lifetime payments).
(Sec. 611)
Sets forth temporary special rules under the IRC for taxation of life insurance companies.
(Sec. 615)
Repeals a requirement for approved diesel or kerosene terminals.
(Sec. 616)
Reauthorizes Temporary Assistance for Needy Families (TANF) supplemental grants for population increases under part A of title IV of the Social Security Act for FY 2002.
(Sec. 617)
Provides for a one-year extension of the contingency fund under the TANF program.
