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Code Section 45D

Code Section Effective Date Name of Act Name of Provision 10yr Revenue Estimate ($millions)
21, 23, 45D, 137 12/31/2012 The American Taxpayer Relief Act of 2012 Other incentives for families and children -7,580
45D 12/31/2011 The American Taxpayer Relief Act of 2012 New markets tax credit -1,794
21, ,23, 36C, 45D, 137 12/31/2010 The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 Other Incentives for Families and Children -973
45D 12/31/2009 The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 New markets tax credit -1,810
45D 2/17/2009 The American Recovery and Reinvestment Act of 2009 (Public Law 111-5) Extend and modify the new markets tax credit -815

Other incentives for families and children (includes extension of the adoption tax credit, employer-provided adoption assistance, employer-provided child care tax credit, and dependent care tax credit)

Explanation of Provision

Adoption credit and exclusion from income for employer-provided adoption assistance

The Act makes permanent the EGTRRA expansion of these two provisions. Therefore, for 2013, the maximum benefit is $12,170 (indexed for inflation after 2010). The adoption credit and exclusion are phased out ratably for taxpayers with modified adjusted gross income between $193,930 and $233,930 (indexed for inflation) for 2013.277 The 2012 rules relating to expenses for special needs adoptions are retained, and taxpayers remain able to offset their alternative minimum tax liability with the credit.

Employer-provided child care tax credit

The Act makes permanent the EGTRRA expansion of the employer-provided child tax credit.

Expansion of dependent care tax credit

The Act makes permanent the EGTRRA expansion of the dependent care tax credit.

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New markets tax credit

Explanation of Provision

The provision extends the new markets tax credit for two years, through 2013, permitting up to $3.5 billion in qualified equity investments for each of the 2012 and 2013 calendar years. The provision also extends for two years, through 2018, the carryover period for unused new markets tax credits.

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Other Incentives for Families and Children (includes extension of the adoption tax credit, employer-provided child care tax credit, and dependent care tax credit)

Explanation of Provision

Adoption credit and exclusion from income for employer-provided adoption assistance

The provision extends the EGTRRA expansion of these two benefits for one year (2012). Therefore, for 2012, the maximum benefit is $12,170 (indexed for inflation after 2010). The adoption credit and exclusion are phased out ratably for taxpayers with modified adjusted gross income between $182,520 and $222,520 (indexed for inflation after 2010).1550

Adoption credit and exclusion from income for employer-provided adoption assistance

The provision extends this tax benefit for two years (through 2012).

Adoption credit and exclusion from income for employer-provided adoption assistance

The provision extends the dependent care tax credit EGTRRA expansion for two years (through 2012).

New markets tax credit

Explanation of Provision

The provision extends the new markets tax credit for two years, through 2011, permitting up to $3.5 billion in qualified equity investments for each of the 2010 and 2011 calendar years. The provision also extends for two years, through 2016, the carryover period for unused new markets tax credits.

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Extend and modify the new markets tax credit

Explanation of Provision215

For calendar years 2008 and 2009, the Act increases the maximum amount of qualified equity investments by $1.5 billion (to $5 billion for each year). The Act requires that the additional amount for 2008 be allocated to qualified CDEs that submitted an allocation application with respect to calendar year 2008 and either (1) did not receive an allocation for such calendar year, or (2) received an allocation for such calendar year in an amount less than the amount requested in the allocation application.

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215- The provision was subsequently amended by section 733 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. L. No. 111–312, described in Part Sixteen of this document.
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277- The changes to the adoption credit and exclusion from employer-provided adoption assistance for 2010 and 2011 (relating to the $1,000 increase in the maximum credit and exclusion and the refundability of the credit) enacted as part of the Patient Protection and Affordable Care Act, are not extended by the provision.
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1550- The changes to the adoption credit and exclusion from employer-provided adoption assistance for 2010 and 2011 (relating to the $1,000 increase in the maximum credit and exclusion and the refundability of the credit) enacted as part of the Patient Protection and Affordable Care Act, Pub. L. No. 111–148, are not extended by the provision.
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