American Jobs Creation Act of 2004
|Long title||An Act To amend the Internal Revenue Code of 1986 to remove impediments in such Code and make our manufacturing, service, and high-technology businesses and workers more competitive and productive both at home and abroad|
|Enacted by||the 108th United States Congress|
|Public law||Pub.L. 108–357|
|Statutes at Large||118 Stat. 1418–1660|
|Acts amended||Internal Revenue Code of 1986|
The American Jobs Creation Act of 2004 (Pub.L. 108–357) was a federal tax act that repealed the export tax incentive (ETI), which had been declared illegal by the World Trade Organization numerous times and sparked retaliatory tariffs by the European Union, and was also composed of numerous tax credits for agricultural and business institutions, and included was the repeal of some excise taxes on fuel and alcohol, and the creation of tax credits for biofuels.
Summary of provisions
- created deduction for income from U.S. production activities
- repealed exclusion for extraterritorial income
- changed interest expense allocation rules
- 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
A little noticed, but important provision in this act revised the definition of the term "covered expatriate" which sets dollar values used to determine if a person who renounces his U.S. citizenship must pay an exit tax and have his name placed on the "Quarterly Publication of Individuals Who Have Chosen to Expatriate".
- Extraterritorial income exclusion
- Foreign Sales Corporation
- Domestic international sales corporation
- Clausing, Kimberly A. (December 2004). "The American Jobs Creation Act of 2004: Creating Jobs for Accountants and Lawyers" (PDF). Urban-Brookings Tax Policy Center. Archived (PDF) from the original on 31 December 2010. Retrieved 26 December 2010.
- "Bill Summary & Status: Public Law No: 108-357". Library of Congress: Thomas. October 22, 2004. Retrieved 26 December 2010.
- Office of Tax Analysis (2003, rev. September 2006). "Revenue Effects of Major Tax Bills" (PDF). United States Department of the Treasury. Working Paper 81, page 12. Archived (PDF) from the original on 2 January 2011. Retrieved 26 December 2010. Check date values in: