The American Jobs Creation Act of 2004 () was a federal tax act that repealed the export tax incentive (ETI), which had been declared illegal by the

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...

several times and sparked retaliatory tariffs by the

European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...

. It also contained numerous

tax credits A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state. It may also be a credit granted in recognition of taxes already paid or a form of state "disc ...

for agricultural and business institutions as well as the repeal of

excise tax file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the Bunghole, bung of the beer barrel so when ...

es on both fuel and alcohol and the creation of tax credits for

biofuels Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels such as oil. Biofuel can be produced from plants or from agricultural, domestic ...

. The bill was introduced by Representative Bill Thomas on June 4, 2004, passed the

House A house is a single-unit residential building. It may range in complexity from a rudimentary hut to a complex structure of wood, masonry, concrete or other material, outfitted with plumbing, electrical, and heating, ventilation, and air c ...

June 17, the

Senate A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the el ...

on July 15, and was signed by President

George W. Bush George Walker Bush (born July 6, 1946) is an American politician and businessman who was the 43rd president of the United States from 2001 to 2009. A member of the Bush family and the Republican Party (United States), Republican Party, he i ...

on October 22.

Summary of provisions

The Office of Tax Analysis of the

United States Department of the Treasury The Department of the Treasury (USDT) is the Treasury, national treasury and finance department of the federal government of the United States. It is one of 15 current United States federal executive departments, U.S. government departments. ...

summarized the tax changes as follows:

* created deduction for income from U.S. production activities * repealed exclusion for extraterritorial income * changed interest expense allocation rules

A report by the

Tax Policy Center The Urban-Brookings Tax Policy Center, typically shortened to the Tax Policy Center (TPC), is a nonpartisan think tank based in Washington D.C., United States. A joint venture of the Urban Institute and the Brookings Institution, it aims to pr ...

identifies the following main provisions and their costs over a period of 10 years:

* 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 and income tax liability thresholds used to determine if a person who renounces his/her U.S. citizenship must pay an

expatriation tax An expatriation tax or emigration tax is a tax on persons who cease to be tax-resident in a country. This often takes the form of a capital gains tax against unrealised gain attributable to the period in which the taxpayer was a tax resident ...

References

Congress.gov Congress.gov is the online database of United States Congress legislative information. Congress.gov is a joint project of the Library of Congress, the House, the Senate and the Government Publishing Office. Congress.gov was in beta in 2012, and ...

{{Authority control United States federal taxation legislation Acts of the 108th United States Congress Presidency of George W. Bush 2004 in economic history

Summary of provisions

See also

References

External links