Tax Law

Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 - An Analysis

On Friday, December  17th, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Pub Law 111-312).  The Act contains numerous tax provisions meant to stimulate the American economy.  It is vital for tax professionals to have a thorough understanding of how these tax provisions will affect the potential tax liability of their individual and corporate clients.

For the individual taxpayer, the Act extends all of the Bush tax cuts, the earned income credit, and eliminates the marriage penalty through 2012.  It also increases the exemption amount for individuals for the alternative minimum tax for 2010 and 2011, the so-called AMT patch, and cuts the employee portion of the Social Security tax from 6.2 percent to 4.2 percent on all earned wages up to $106,800 for the 2011 tax period.  For the corporate taxpayer, the Act extends various investment incentives.  It makes several significant changes to IRC Section 168 (accelerated cost recovery system), including extending and expanding the additional first-year depreciation deduction to equal 100 percent of the cost of qualified property placed in service after September 8, 2010 and before January 1, 2012 and extending the existing  50 percent first-year additional depreciation deduction to qualified property placed in service after December 31, 2011 and before January 1, 2013. 

 Noted tax author, Gerald Paulukonis, has written for Lexis a comprehensive analysis of the tax provisions contained within the Act.  For each provision of the law he has included: (1) a discussion of the existing law; (2) a thorough analysis of how that law is being changed by the Act; (3) a reference to the IRC section(s) and subsection(s) altered by the provision; (4) the effective date of the change; and (5) where appropriate, tax planning commentary.  This analysis is available on Tax Center and the tax AOL page on  In addition to the analysis, we provide linkage to a full copy of the law, related Congressional committee reports, and related news stories from TaxAnalysts® Tax Notes Today.

Table of Contents:

§ 1.00          Introduction

§ 1.01          Temporary Extension of Tax Relief (Title I)

§ 1.02          Temporary Extension of Individual AMT Relief (Title II)

§ 1.03          Temporary Estate Tax Relief (Title III)

§ 1.04          Temporary Extension of Investment Incentives (Title IV)

§ 1.05          Temporary Employee Payroll Tax Cut (Title VI)

§ 1.06          Temporary Extension of Certain Provision (Title VII)

View the complete analysis by Gerald W. Paulukonis in PDF: Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.