Tax Fairness and Competitiveness Act of 1992

Summary

Tax Fairness and Competitiveness Act of 1992 - Title I: Middle Income Tax Relief - Subtitle A: Educational Incentives - Amends the Internal Revenue Code to allow an itemized deduction for all interest paid on educational loans for the first 48 months (whether or not consecutive) for which a payment is required to be made. Allows a tax credit for 15 percent of the interest paid or incurred on any qualified education loan during the first 48 months (whether or not consecutive) for which a payment is required to be made. Limits such credit to $300. Requires taxpayers to elect the tax deduction or the tax credit, but not both. Prohibits the use of the deduction if a deduction is allowed for residence interest allocable to indebtedness used to pay qualified higher education expenses. Allows such tax credit to parents only if the dependent is a student and a personal exemption is claimed for such dependent student. Includes as qualified tuition and related expenses reasonable living expenses and transportation to and from home in the case of a student living away from home. Replaces the tax exclusion for income from U.S. savings bonds used to pay higher education tuition and fees with a tax exemption for income from college savings accounts. Excludes from gross income eligible withdrawals from qualified college savings accounts or redemption of qualified U.S. savings bonds used to pay higher education expenses. Requires deposits in college savings accounts to be held for at least five years before withdrawal. Describes a qualified college savings account as a prepaid tuition contract with a State or a trust similar to an individual retirement plan. Limits contributions to college savings accounts to $10,000 per year. Reduces such limitation for the taxpayer and spouse whose income exceeds $60,000 ($40,000 in case of non-marrieds). Provides an inflation adjustment for such limitation. Includes in the requirements for a qualified U.S. savings bond that it be designated as a college savings account, and be issued after December 31, 1991. Requires a reduction in qualified higher education expenses by amounts received from certain scholarships and veterans benefits. Subtitle B: Incentives for First-Time Homebuyers - Allows a tax credit of $2,000 for a first-time homebuyer who purchases or constructs a principal residence between January 22, 1992, and before January 23, 1994. Title II: Incentives to Increase Long-Term Competitiveness - Subtitle A: Investment Incentives - Allows a variable capital gains deduction for a noncorporate taxpayer based upon capital assets held from one to ten years. Revises provisions concerning the gain from dispositions of certain depreciable realty to provide for recapture of the total amount of depreciation. Requires an increase in the individual income tax rates for certain higher-income taxpayers, if the Secretary of the Treasury determines that a capital gains revenue shortfall has occurred. Revises the alternative tax for corporations to change the 34 percent tax on net capital gain to a tax on the applicable percentage of the classes of net capital gain based on assets held from two to ten years. Allows corporate taxpayers with unused alternative minimum tax credits from prior years to use such credits against current-year alternative minimum tax liability. Eliminates intangible drilling costs and percentage depletion as tax preference items for independent producers of oil and gas properties. Declares that depreciation adjustments do not apply to environmental improvement assets. Provides for the treatment of rental and nonrental real estate activities under the limitations on losses from passive activities. Reduces the depreciation recovery period for automobiles and light trucks from five years to three years. Raises the ceiling on depreciation limits for passenger automobiles. Subtitle B: Targeted Jobs Credit - Extends the targeted jobs credit permanently. Increases the maximum age requirement for economically disadvantaged youth from 23 to 25. Allows employers to use the targeted jobs credit for employment of economically disadvantaged Persian Gulf veterans.

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Timeline

1. 23 January 1992

   Introduced

   Read twice and referred to the Committee on Finance.

   Source: IntroReferral

2. 23 January 1992

   Introduced

   Introduced in Senate

   Source: IntroReferral

Votes

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Versions

• Introduced in Senate · — · Download file

Documents

2 official files

• Introduced in Senate (text)

  Introduced in Senate · EN

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 23 January 1992

  Open at official source

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Sponsors

• Sen. Boren, David L. [D-OK] · D · Sponsor
• Sen. Breaux, John B. [D-LA] · D · Cosponsor
• · ssfi00 · Standing

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