Pub.L. 108-028 Concerning participation of Taiwan in the World Health Organization. <> ...

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          JOBS AND GROWTH TAX RELIEF RECONCILIATION ACT OF 2003

[[Page 117 STAT. 752]]

Public Law 108-27
108th Congress

                                 An Act


 
To provide for reconciliation pursuant to section 201 of the concurrent 
     resolution on the budget for fiscal year 2004. <<NOTE: May 28, 
                           2003 -  [H.R. 2]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Jobs and Growth 
Tax Relief Reconciliation Act of 2003.>> 

SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.

    (a) Short Title.--This <<NOTE: 26 USC 1 note.>> Act may be cited as 
the ``Jobs and Growth Tax Relief Reconciliation Act of 2003''.

    (b) Amendment of 1986 Code.--Except as otherwise expressly provided, 
whenever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; references; table of contents.

   TITLE I--ACCELERATION OF CERTAIN PREVIOUSLY ENACTED TAX REDUCTIONS

Sec. 101. Acceleration of increase in child tax credit.
Sec. 102. Acceleration of 15-percent individual income tax rate bracket 
           expansion for married taxpayers filing joint returns.
Sec. 103. Acceleration of increase in standard deduction for married 
           taxpayers filing joint returns.
Sec. 104. Acceleration of 10-percent individual income tax rate bracket 
           expansion.
Sec. 105. Acceleration of reduction in individual income tax rates.
Sec. 106. Minimum tax relief to individuals.
Sec. 107. Application of EGTRRA sunset to this title.

                TITLE II--GROWTH INCENTIVES FOR BUSINESS

Sec. 201. Increase and extension of bonus depreciation.
Sec. 202. Increased expensing for small business.

      TITLE III--REDUCTION IN TAXES ON DIVIDENDS AND CAPITAL GAINS

Sec. 301. Reduction in capital gains rates for individuals; repeal of 5-
           year holding period requirement.
Sec. 302. Dividends of individuals taxed at capital gain rates.
Sec. 303. Sunset of title.

                 TITLE IV--TEMPORARY STATE FISCAL RELIEF

Sec. 401. Temporary State fiscal relief.

           TITLE V--CORPORATE ESTIMATED TAX PAYMENTS FOR 2003

Sec. 501. Time for payment of corporate estimated taxes.

[[Page 117 STAT. 753]]

   TITLE I--ACCELERATION OF CERTAIN PREVIOUSLY ENACTED TAX REDUCTIONS

SEC. 101. ACCELERATION OF INCREASE IN CHILD TAX CREDIT.

    (a) In General.--The item relating to calendar years 2001 through 
2004 in the table contained in paragraph (2) of section 24(a) (relating 
to per child amount) <<NOTE: 26 USC 24.>> is amended to read as follows:

``2003 or 2004                                                 $1,000''.

    (b) Advance Payment of Portion of Increased Credit in 2003.--
            (1) In general.--Subchapter B of chapter 65 (relating to 
        abatements, credits, and refunds) is amended by inserting after 
        section 6428 the following new section:

``SEC. 6429. <<NOTE: 26 USC 6429.>> ADVANCE PAYMENT OF PORTION OF 
            INCREASED CHILD CREDIT FOR 2003.

    ``(a) In General.--Each taxpayer who was allowed a credit under 
section 24 on the return for the taxpayer's first taxable year beginning 
in 2002 shall be treated as having made a payment against the tax 
imposed by chapter 1 for such taxable year in an amount equal to the 
child tax credit refund amount (if any) for such taxable year.
    ``(b) Child Tax Credit Refund Amount.--For purposes of this section, 
the child tax credit refund amount is the amount by which the aggregate 
credits allowed under part IV of subchapter A of chapter 1 for such 
first taxable year would have been increased if--
            ``(1) the per child amount under section 24(a)(2) for such 
        year were $1,000,
            ``(2) only qualifying children (as defined in section 24(c)) 
        of the taxpayer for such year who had not attained age 17 as of 
        December 31, 2003, were taken into account, and
            ``(3) section 24(d)(1)(B)(ii) did not apply.

    ``(c) Timing of Payments.--In the case of any overpayment 
attributable to this section, the Secretary shall, subject to the 
provisions of this title, refund or credit such overpayment as rapidly 
as possible and, to the extent practicable, before October 1, 2003. No 
refund or credit shall be made or allowed under this section after 
December 31, 2003.
    ``(d) Coordination With Child Tax Credit.--
            ``(1) In general.--The amount of credit which would (but for 
        this subsection and section 26) be allowed under section 24 for 
        the taxpayer's first taxable year beginning in 2003 shall be 
        reduced (but not below zero) by the payments made to the 
        taxpayer under this section. Any failure to so reduce the credit 
        shall be treated as arising out of a mathematical or clerical 
        error and assessed according to section 6213(b)(1).
            ``(2) Joint returns.--In the case of a payment under this 
        section with respect to a joint return, half of such payment 
        shall be treated as having been made to each individual filing 
        such return.

    ``(e) No Interest.--No interest shall be allowed on any overpayment 
attributable to this section.''.

[[Page 117 STAT. 754]]

            (2) Clerical amendment.--The table of sections for 
        subchapter B of chapter 65 is amended by adding at the end the 
        following new item:

                ``Sec. 6429. Advance payment of portion of increased 
                                child credit for 2003.''.

    (c) Effective <<NOTE: 26 USC 24 note.>> Dates.--
            (1) In general.--Except <<NOTE: Applicability.>> as provided 
        in paragraph (2), the amendments made by this section shall 
        apply to taxable years beginning after December 31, 2002.
            (2) Subsection (b).--The amendments made by subsection (b) 
        shall take effect on the date of the enactment of this Act.

SEC. 102. ACCELERATION OF 15-PERCENT INDIVIDUAL INCOME TAX RATE BRACKET 
            EXPANSION FOR MARRIED TAXPAYERS FILING JOINT RETURNS.

    (a) In General.--The table contained in subparagraph (B) of section 
1(f )(8) (relating to applicable percentage) <<NOTE: 26 USC 1.>> is 
amended by inserting before the item relating to 2005 the following new 
item:

                    ``2003 and 2004.............................  200''.

    (b) Conforming Amendments.--
            (1) Section 1(f)(8)(A) is amended by striking ``2004'' and 
        inserting ``2002''.
            (2) Section 302(c) of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001 <<NOTE: 26 USC 1 note.>> is amended 
        by striking ``2004'' and inserting ``2002''.

    (c) Effective Date.--The <<NOTE: Applicability. 26 USC 1 
note.>> amendments made by this section shall apply to taxable years 
beginning after December 31, 2002.

SEC. 103. ACCELERATION OF INCREASE IN STANDARD DEDUCTION FOR MARRIED 
            TAXPAYERS FILING JOINT RETURNS.

    (a) In General.--The table contained in paragraph (7) of section 
63(c) (relating to applicable percentage) is amended by inserting before 
the item relating to 2005 the following new item:

                    ``2003 and 2004.............................  200''.

    (b) Conforming Amendment.--Section 301(d) of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 <<NOTE: 26 USC 1 note.>> is 
amended by striking ``2004'' and inserting ``2002''.

    (c) Effective Date.--The <<NOTE: Applicability. 26 USC 63 
note.>> amendments made by this section shall apply to taxable years 
beginning after December 31, 2002.

SEC. 104. ACCELERATION OF 10-PERCENT INDIVIDUAL INCOME TAX RATE BRACKET 
            EXPANSION.

    (a) In General.--Clause (i) of section 1(i)(1)(B) (relating to the 
initial bracket amount) is amended by striking ``($12,000 in the case of 
taxable years beginning before January 1, 2008)'' and inserting 
``($12,000 in the case of taxable years beginning after December 31, 
2004, and before January 1, 2008)''.
    (b) Inflation Adjustment.--Subparagraph (C) of section 1(i)(1) is 
amended to read as follows:
                    ``(C) Inflation adjustment.--In prescribing the 
                tables under subsection (f) which apply with respect to 
                taxable years beginning in calendar years after 2000--
                          ``(i) except as provided in clause (ii), the 
                      Secretary shall make no adjustment to the initial 
                      bracket amounts for any taxable year beginning 
                      before January 1, 2009,

[[Page 117 STAT. 755]]

                          ``(ii) there shall be an adjustment under 
                      subsection (f) of such amounts which shall apply 
                      only to taxable years beginning in 2004, and such 
                      adjustment shall be determined under subsection 
                      (f)(3) by substituting `2002' for `1992' in 
                      subparagraph (B) thereof,
                          ``(iii) the cost-of-living adjustment used in 
                      making adjustments to the initial bracket amounts 
                      for any taxable year beginning after December 31, 
                      2008, shall be determined under subsection (f)(3) 
                      by substituting `2007' for `1992' in subparagraph 
                      (B) thereof, and
                          ``(iv) the adjustments under clauses (ii) and 
                      (iii) shall not apply to the amount referred to in 
                      subparagraph (B)(iii).
                If any amount after adjustment under the preceding 
                sentence is not a multiple of $50, such amount shall be 
                rounded to the next lowest multiple of $50.''.

    (c) Effective <<NOTE: 26 USC 1 note.>> Date.--
            (1) In general.--The <<NOTE: Applicability.>> amendments 
        made by this section shall apply to taxable years beginning 
        after December 31, 2002.
            (2) Tables for 2003.--The Secretary of the Treasury shall 
        modify each table which has been prescribed under section 1(f) 
        of the Internal Revenue Code of 1986 for taxable years beginning 
        in 2003 and which relates to the amendment made by subsection 
        (a) to reflect such amendment.

SEC. 105. ACCELERATION OF REDUCTION IN INDIVIDUAL INCOME TAX RATES.

    (a) In General.--The table contained in paragraph (2) of section 
1(i) (relating to <<NOTE: 26 USC 1.>> reductions in rates after June 30, 
2001) is amended to read as follows:

  

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                             The corresponding percentages shall be substituted for the following percentages:
                         ``In the case of taxable years  -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                         beginning during calendar year:    28%      31%      36%                                                                                               39.6%
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                        2001............................   27.5%    30.5%    35.5%                                                                                              39.1%
                        2002............................   27.0%    30.0%    35.0%                                                                                              38.6%
                        2003 and thereafter.............   25.0%    28.0%    33.0%                                                                                             35.0%''.
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


    (b) Effective Date.--The <<NOTE: Applicability. 26 USC 1 
note.>> amendment made by this section shall apply to taxable years 
beginning after December 31, 2002.

SEC. 106. MINIMUM TAX RELIEF TO INDIVIDUALS.

    (a) In General.--
            (1) Subparagraph (A) of section 55(d)(1) is amended by 
        striking ``$49,000 in the case of taxable years beginning in 
        2001, 2002, 2003, and 2004'' and inserting ``$58,000 in the case 
        of taxable years beginning in 2003 and 2004''.
            (2) Subparagraph (B) of section 55(d)(1) is amended by 
        striking ``$35,750 in the case of taxable years beginning in 
        2001, 2002, 2003, and 2004'' and inserting ``$40,250 in the case 
        of taxable years beginning in 2003 and 2004''.

    (b) Effective Date.--The <<NOTE: Applicability. 26 USC 55 
note.>> amendments made by subsection (a) shall apply to taxable years 
beginning after December 31, 2002.

SEC. 107. <<NOTE: 26 USC 1 note.>> APPLICATION OF EGTRRA SUNSET TO THIS 
            TITLE.

    Each amendment made by this title shall be subject to title IX of 
the Economic Growth and Tax Relief Reconciliation Act of

[[Page 117 STAT. 756]]

2001 to the same extent and in the same manner as the provision of such 
Act to which such amendment relates.

                TITLE II--GROWTH INCENTIVES FOR BUSINESS

SEC. 201. INCREASE AND EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Section 168(k) (relating to <<NOTE: 26 USC 
168.>> special allowance for certain property acquired after September 
10, 2001, and before September 11, 2004) is amended by adding at the end 
the following new paragraph:
            ``(4) 50-percent bonus depreciation for certain property.--
                    ``(A) In general.--In the case of 50-percent bonus 
                depreciation property--
                          ``(i) paragraph 
                      (1)(A) <<NOTE: Applicability.>> shall be applied 
                      by substituting `50 percent' for `30 percent', and
                          ``(ii) except as provided in paragraph (2)(C), 
                      such property shall be treated as qualified 
                      property for purposes of this subsection.
                    ``(B) 50-percent bonus depreciation property.--For 

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