JOINT COMMITTEE ON TAXATION 
January 23, 2009 
JCX-11-09 
ESTIMATED BUDGET EFFECTS OF 
THE "AMERICAN RECOVERY AND REINVESTMENT TAX ACT OF 2009," [1] 
SCHEDULED FOR MARKUP BY THE COMMITTEE ON FINANCE ON JANUARY 27, 2009 
Fiscal Years 2009 - 2019 
[Millions of Dollars] 
Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009-13 2009-14 2009-18 2009-19 
I. Tax Relief for Individuals and Families 
1. Making Work Pay Credit - credit of 6.2% of 
earned income up to a maximum of $500 
single ($1,000 joint) for tax years 2009 and 
2010; phaseout for taxpayers with modified2010; phaseout for taxpayers with modified 
AGI in excess of $75,000 ($150,000 joint), 
credit reduced by special payment made by the 
SSA and the VA; and treatment of the U.S. 
Possessions [2] [3]................................................. tyba 12/31/08 -23,859 -80,902 -37,481 --
--
--
--
--
--
--
--
142,243 -142,243 -142,243 -142,243 
2. Temporary increase in earned income tax 
credit for taxable years 2009 and 2010 [3]............ tyba 12/31/08 -23 -2,349 -2,291 --
--
--
--
--
--
--
--
4,663 -4,663 -4,663 -4,663 
3. Temporarily reduce the earnings threshold for 
the refundable portion of the child tax credit 
for taxable years 2009 and 2010 to $6,000 [3]...... tyba 12/31/08 [4] -5,303 -5,238 --
--
--
--
--
--
--
--
10,542 -10,542 -10,542 -10,542 
4. American Opportunity Tax Credit - amend the 
HOPE scholarship credit for taxable years 
2009 and 2010 so that it is available for four 
years at a rate of 100% of first $2,000 of 
expenses and 25% of next $2,000; phaseout for 
taxpayers with modified AGI between $80,000 
- $90,000 ($160,000- $180,000 joint); make 
textbooks a qualifying expense; allow against 
the AMT [5].......................................................... tyba 12/31/08 -791 -4,425 -5,040 --
--
--
--
--
--
--
--
10,256 -10,256 -10,256 -10,256 
5. Make 30% of the allowable American 
Opportunity Tax Credit refundable [3] [5]............ tyba 12/31/08 -242 -1,262 -1,170 --
--
--
--
--
--
--
--
2,674 -2,674 -2,674 -2,674 
6. Temporarily allow computer technology and 
equipment as a qualified higher education 
expense for qualified tuition programs for 2009 
and 2010................................................................ tyba 12/31/08 [1] [1] [1] -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -3 -6 


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Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009-13 2009-14 2009-18 2009-19 
7. Waiver of requirement to repay first-time 
homebuyer credit unless home is sold within 
36 months of purchase........................................... hpo/a 1/1/09 66 192 -98 -293 -334 -621 -539 -457 -328 -109 -40 -467 -1,088 -2,521 -2,562 
8. Exclude up to $2,400 of unemployment 
insurance benefits from gross income for 
taxable year 2009................................................... DOE -948 -3,792 --
--
--
--
--
--
--
--
--
4,740 -4,740 -4,740 -4,740 
Total of Tax Relief for Individuals and Families ………………………… -25,797 -97,841 -51,318 -294 -335 -622 -540 -458 -329 -110 -41 -175,586 -176,207 -177,642 -177,686 
II. Renewable Energy Incentives 
1. Extension of the renewable electricity credit 
extend 
by three years the placed-in-service date 
for each section 45 qualified facility (two years 
for marine renewables), excluding coal and ppisa 12/31/09 
solar facilities........................................................ & 12/31/10 --
-
127 -440 -921 -1,365 -1,603 -1,649 -1,700 -1,743 -1,788 -1,806 -2,853 -4,456 -11,337 -13,143 
2. Election of investment credit for section 45 
facilities in lieu of production credits.................... ppisa 12/31/08 -96 -131 -29 16 11 8 4 --
--
--
--
230 -221 -218 -218 
3 Mdif i 48 di 3. Modify section 48 energy credit – remove cap 
for small wind systems, and remove cutback to 
credit for subsidized energy financing................... pa 12/31/08 -31 -33 -42 -50 -59 -71 -87 -104 -66 -32 -26 -216 -287 -577 -604 
4. Increased limitation on issuance of new clean 
renewable energy bonds ($1.6 billion additional 
allocation).............................................................. DOE -1 -4 -15 -36 -59 -73 -78 -78 -78 -78 -78 -115 -188 -500 -578 
5. Increased limitation on issuance of qualified 
energy conservation bonds ($2.4 billion 
additional allocation)............................................. DOE -1 -5 -17 -41 -69 -95 -111 -116 -116 -116 -116 -133 -228 -687 -803 
6. Extension and temporary increase to 30% 
($1,500 per residence cap) credit for all section 
25C nonbusiness energy property, and repeal 
reduction in section 25C credits by reason of ea 12/31/08 & 
receipt of subsidized energy financing.................. before 1/1/11 -370 -1,967 -1,938 --
--
--
--
--
--
--
4,275 -4,275 -4,275 -4,275 
7. Credit for residential energy efficient property 
remove 
credit cap for residential wind, 
geothermal property, and residential solar 
thermal property under section 25D, repeal 
reduction in all section 25D credits (residential 
solar, geothermal, wind, fuel cells) by reason of 
receipt of subsidized energy.................................. tyba 12/31/08 -7 -29 -30 -32 -33 -34 -36 -37 -28 --
--
131 -165 -268 -268 
8. Temporarily increase credit rate for nonhydrogen 
refueling property to 50%; increase max credit 
to $50,000 for business property ($200,000 in 
the case of hydrogen) and $2,000 for 
nonbusiness property (sunset 12/31/10)................ tyba 12/31/08 -11 -21 -14 -6 -4 -2 1 1 1 1 1 -57 -59 -55 -54 


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Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009-13 2009-14 2009-18 2009-19 
9. 20% research credit for qualified energy 
research (sunset 12/31/10)..................................... 
10. 5-year carryback of general business credits 
and allow general business credits to offset 
100% of Federal tax liability................................. 
tyba 12/31/08 
[6] 
-2 
-9,127 
-6 
-292 
-5 
-257 
-2 
-231 
-2 
-208 
-1 
-187 
--
-
168 
--
-
152 
--
-
136 
--
-
123 
--
111 
-17 
-10,115 
-18 
-10,302 
-18 
-10,882 
-18 
-10,992 
Total of Renewable Energy Incentives …………………………………… -9,646 -2,615 -2,787 -1,303 -1,788 -2,058 -2,124 -2,186 -2,166 -2,136 -2,136 -18,142 -20,199 -28,817 -30,953 
III. Tax Incentives for Business 
1. Special allowance for certain property acquired 
during 2009 [7]...................................................... 
2. Temporary increase in limitation on expensing 
of certain depreciable business assets.................... 
3. 5-year carryback of 2008 and 2009 
NOLs with exception for TARP recipients........... 
4. Modification of the work opportunity tax credit 
incentives 
to hire unemployed veterans and 
di d hdisconnected youth................................................ 
5. Extension of election to accelerate AMT and 
R&E credits in lieu of bonus depreciation [3]....... 
6. Deferral of certain income from discharge of 
indebtedness.......................................................... 
7. Increase section 1202 exclusion to 75% (sunset 
12/31/10)............................................................... 
ppisa 12/31/08 
tybi 2009 
[8] 
i 12/31/08wpoia 12/31/08 
tyea 12/31/08 
ra 12/31/08 & 
before 1/1/11 
sia DOE 
-23,916 
-642 
-29,652 
28-28 
-20 
-7,091 
2 
-14,893 
-425 
-29,416 
73-73 
-984 
-8,200 
6 
8,347 
352 
10,314 
64-64 
49 
4,141 
2 
6,645 
222 
9,476 
25-25 
47 
4,128 
--
5,646 
162 
7,190 
10-10 
33 
4,115 
--
4,614 
125 
5,113 
5-5 
21 
2,396 
-207 
3,098 
79 
3,579 
2-2 
15 
--
-
360 
1,985 
45 
2,469 
[4] [4] 
10 
--
-
163 
1,255 
22 
1,721 
--
8 
--
-
50 
961 
10 
1,180 
--
8 
--
-
36 
938 
10 
843 
--
--
22 
-18,171 
-331 
-32,088 
200-200 
-875 
-2,907 
9 
-13,557 
-206 
-26,975 
206-206 
-854 
-511 
-198 
-6,258 
-50 
-18,026 
207-207 
-813 
-511 
-807 
-5,320 
-41 
-17,183 
208-208 
-805 
-511 
-829 
Total of Tax Incentives for Business ……………………………………… -61,347 -53,985 23,141 20,493 17,136 12,057 6,409 4,346 2,956 2,123 1,777 -54,563 -42,507 -26,672 -24,897 
IV. Manufacturing Recovery Provisions 
1. For bonds issued in 2009 and 2010, expand 
industrial development bonds to include 
creation of intangible property and eliminate 
25% of proceeds restriction for facilities 
functionally related and subordinate to a 
manufacturing facility........................................... 
2. Credit for investment in advanced energy 
property................................................................. 
bia DOE & 
before 1/1/11 
ppisa DOE 
-1 
--
-
6 
-138 
-16 
-281 
-23 
-292 
-24 
-151 
-23 
-110 
-23 
-136 
-23 
-136 
-22 
-105 
-22 
-51 
-21 
-11 
-70 
-862 
-93 
-972 
-183 
-1,400 
-203 
-1,411 
Total of Manufacturing Recovery Provisions …………………………… -1 -144 -297 -315 -175 -133 -159 -159 -127 -73 -32 -932 -1,065 -1,583 -1,614 
V. Economic Recovery Tools 
1. Recovery zone bonds ($15 billion private 
activity bond allocation; $10 billion allocation 
for refundable issuer credit bonds) [3].................. 
oia 12/31/08 & 
before 1/1/11 -112 -230 -473 -534 -536 -528 -520 -512 -504 -496 -486 -1,885 -2,413 -4,445 -4,931 


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Provision Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009-13 2009-14 2009-18 2009-19 
2. Tribal economic development bonds - create 
a national pool of tax-exempt bonds for use 
by Indian tribes for economic development 
($2 billion allocation)............................................ oia DOE -1 -4 -15 
3. Extend and modify the new markets tax credit 
increase 
new markets tax credit equity 
limitation to a total of $5 billion for calendar 
years 2008 and 2009 and allow 2009 credits 
against the AMT.................................................... DOE -50 -36 -66 
-31 
-128 
-39 
-152 
-39 
-179 
-39 
-172 
-38 
-154 
-37 
-113 
-36 
-1 
-36 -90 -129 -279 -315 
4 -432 -610 -1,051 -1,046 
Total of Economic Recovery Tools ……………………………………… -163 -270 -554 -693 -727 -746 -731 -704 -654 -533 -518 -2,407 -3,152 -5,775 -6,292 
VI. Infrastructure Financing Tools 
1. Modification of rules applicable to financial 
institutions for interest expense relating to oia 12/31/08 & 
tax-exempt income................................................. before 1/1/11 -79 -239 -326 
2. For bonds issued during 2009 and 2010, repeal 
fl i i i li i iof alternative minimum tax limitations on 
private-activity tax-exempt bonds and modify 
ACE to exclude interest from all tax-exempt oia 12/31/08 & 
bonds..................................................................... before 12/31/10 -21 -60 -68 
3. Delay 3% withholding on government contracts 
by one year............................................................ DOE --
--
-
5,819 
4. Qualified school construction bonds ($5 billion 
in 2009 and 2010).................................................. oia 12/31/08 -9 -50 -143 
5. Extend and expand qualified zone academy 
bonds ($1.4 billion in 2009 and 2010).................. oia 12/31/08 -1 -10 -40 
6. Build America Bonds - general rule: 35% 
credit to bondholders for bonds issued in 2009, 
2010, and 2011; 35% refundable credit to 
issuers for bonds issued in 2009 and 2010 [3]...... oia 12/31/08 -53 -323 -829 
-340 
-41 
5,528 
-278 
-90 
-778 
-336 
-42 
--
-
417 
-130 
-753 
-331 
-42 
--
-
536 
-140 
-728 
-326 
-42 
--
-
611 
-137 
-704 
-321 
-42 
--
-
632 
-131 
-680 
-317 
-41 
--
-
619 
-125 
-664 
-312 
-41 
--
-
602 
-121 
-649 
-307 -1,320 -1,651 -2,927 -3,234 
-41 -232 -274 -440 -481 
--
291 -291 -291 -291 
-592 -897 -1,433 -3,897 -4,489 
-120 -271 -411 -925 -1,045 
-634 -2,736 -3,464 -6,161 -6,796 
Total of Infrastructure Financing Tools ………………………………… -163 -682 -7,225 4,001 -1,678 -1,777 -1,820 -1,806 -1,766 -1,725 -1,694 -5,747 -7,524 -14,641 -16,336 
Total of Tax Provisions [3] …………………………………………………… -97,117 -155,537 -39,040 21,889 12,433 6,721 1,035 -967 -2,086 -2,454 -2,644 -257,377 -250,654 -255,130 -257,778 
Other Provisions 
1. Prohibition on collection of certain payments 
made under the Continued Dumping and Subsidy 
Offset Act of 2000 [9]........................................... DOE -10 -30 -30 
2. Extension of Trade Adjustment Assistance 
Programs [9].......................................................... DOE -31 -55 -19 
-10 
-3 
-10 
--
--
--
--
--
--
--
--
--
--
--
--
90 -90 -90 -90 
--
108 -108 -108 -108 


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Provision 
Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009-13 2009-14 2009-18 2009-19 

3. Economic recovery payments to recipients of 
Social Security, supplement security income, 
railroad retirement, and veterans disability 
benefits [9] [10]..................................................... DOE -17,000 -------------------------------17,000 -17,000 -17,000 -17,000 
4. Increase in statutory limit on the public debt......... DOE --------------------------------------------
Total 
of Other Provisions ………………………………………………… -17,041 -85 -49 -13 -10 -------------------17,198 -17,198 -17,198 -17,198

 NET TOTAL ……………………………………………………………………-114,158 -155,622 -39,089 21,876 12,423 6,721 1,035 -967 -2,086 -2,454 -2,644 -274,575 -267,852 -272,328 -274,976 

Joint Committee on Taxation 

NOTE: Details may not add to totals due to rounding. 

Legend for "Effective" column: 
bra = benefits received after oia = obligations issued after tyba = taxable years beginning after 
DOE = date of enactment pa = periods after tyea = taxable years ending after 
ea = expenditures after ppisa = property placed in service after tybi = taxable years beginning in 
h/ h h d ft h ft wpoiia = wages paid or iincurred aft fterhpo/a = houses purchased on or after ra = repurchases after id d 

[1] Revenue estimates are prepared using our 2009 estimating models, which rely on the Congressional Budget Office’s January 2009 macroeconomic forecasts. The Congressional Budget 
Office plans to prepare a March revision to its baseline macroeconomic assumptions. If large-scale stimulus legislation is enacted early in 2009, the Congressional Budget Office’s March 
2009 revised macroeconomic forecasts could be expected to differ, perhaps significantly, from their January 2009 counterparts. In that case, we anticipate that we would revise our 2009 
estimating models to reflect the Congressional Budget Office’s March 2009 macroeconomic forecasts: revenue estimates prepared using these revised March 2009 macroeconomic inputs 
again could differ, perhaps materially, from revenue estimates of the same request using our 2009 models with January 2009 macroeconomic forecasts. 
[2] Estimated outlay effects as a result of U.S. possessions provision provided by the Joint Committee on Taxation in consultation with the Congressional Budget Office. 
[3] Estimate includes an increase in outlays: 
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009-13 2009-14 2009-18 2009-19 
Making work pay credit………………………………………………… ---22,268 22,984 ------------------------45,252 45,252 45,252 45,252 
Treatment of U.S. Possessions………………………………………… 641 708 14 ------------------------1,363 1,363 1,363 1,363 
Earned income credit…………………………………………………… ---1,833 1,803 ------------------------3,636 3,636 3,636 3,636 
Child tax credit………………………………………………………… ---5,303 5,238 ------------------------10,541 10,541 10,541 10,541 
Election to accelerate AMT and R&E credits in lieu of 
bonus depreciation ………………………………………………… 8 394 ---------------------------402 402 402 402 
American Opportunity Credit………………………………………… 242 1,262 1,170 ------------------------2,674 2,674 2,674 2,674 
First-time homebuyer credit…………………………………………… -22 -65 ----------------------------87 -87 -87 -87 
Taxable bond option…………………………………………………… 51 292 368 327 320 314 308 302 296 290 284 1,358 1,672 2,868 3,152 
Recovery zone bonds…………………………………………………… 91 122 244 244 242 239 237 234 232 230 227 943 1,182 2,115 2,342 
Economic recovery payments………………………………………… 17,000 ------------------------------17,000 17,000 17,000 17,000 

Total increase in outlays…………………………………………………… 18,011 32,117 31,821 571 562 553 545 536 528 520 511 83,082 83,635 85,764 86,275 

[4] Loss of less than $500,000. 
[5] Estimate includes interaction with Making Work Pay Credit and Additional Tax Relief for Families With Children. 
[6] Effective for carrybacks from 2008 and 2009 and credits used in 2008 and 2009. 
[Footnotes for JCX-11-09 are continued on the following page] 


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Footnotes for JCX-11-09 continued: 

[7] The provision modifies the definition of qualified property to include certain motion picture film or video tape. 
Under the modification, a taxpayer may elect to include certain films as 
qualifying property in lieu of applying section 181 to such film. 
[8] Effective for net operating losses generated in taxable years ending in 2008 and 2009. 
[9] Estimate provided by the Congressional Budget Office. 
[10] Estimate is preliminary and subject to change.