(Sec. 102) Accelerates the reduction of the maximum individual income tax rate to 25 percent by 2002.
Title II: Business Provisions - Amends various IRC provisions specifically applicable to businesses.
(Sec. 201) Amends the Internal Revenue Code (IRC) to allow an additional first year 30 percent depreciation allowance for property which has a recovery period of 20 years or less, is water utility property, or computer software and which was acquired after September 10, 2001, and before September 11, 2004, and is placed in service before January 1, 2005.
(Sec. 202) Increases, for 2002 and 2003, the dollar amount of certain property (equipment) that can be deducted as an ordinary business expense (expensed) not chargeable to capital account.
(Sec. 203) Revises provisions for an alternative minimum tax on corporations to repeal: (1) a specified preference for depreciation; (2) the 90 percent limitation on foreign tax credits; and (3) the 90 percent limitation on the net operating cost deduction.
(Sec. 204) Allows, for 2001 and 2002, carryback of certain net operating losses for five years.
(Sec. 205) Revises the property recovery period for depreciation to include qualified leasehold improvement property.
Title III: Extensions of Certain Expiring Provisions - Subtitle A: Extensions - Extends various expiring IRC provisions, including: (1) an allowance of nonrefundable personal credits against regular and minimum tax liability; (2) a credit for qualified electric vehicles; (3) a credit for electricity produced from certain renewable resources; (4) a work opportunity credit; (5) a welfare-to-work credit; (6) a deduction for clean-fuel vehicles and certain refueling property; (7) a taxable income limit on percentage depletion for oil and natural gas produced from marginal properties; (8) qualified zone academy bonds; (9) cover over of a tax on distilled spirits; (10) parity in the application of certain limits to mental health benefits; (11) temporary special rules for taxation of life insurance companies; (12) availability of medical savings accounts; (13) incentives for Indian employment and property on Indian reservations; and (14) an exemption for active financing. Repeals a requirement for approved diesel or kerosene terminals.
Subtitle B: Temporary Assistance for Needy Families - Amends the Social Security Act (SSA) to revise provisions for the program of Temporary Assistance for Needy Families (TANF) to extend through FY 2002: (1) the authorization of supplemental grants for population increases; and (2) the contingency fund.
Title IV: Tax Incentives for New York City and Distressed Areas - Amends IRC to provide tax benefits for the area of New York City damaged in terrorist attacks on September 11, 2001.
Title V: Miscellaneous and Technical Provisions - Subtitle A: General Miscellaneous Provisions - Amends IRC to allow electronic 1099 forms.
(Sec. 502) Provides that income from the discharge of indebtedness of an S corporation that is excluded from the S corporation's income is not taken into account as an item of income by any shareholder and therefore does not increase the basis of any shareholder's stock in the corporation.
(Sec. 503) Revises provisions concerning the nonaccrual experience method of accounting to make it available only for amounts to be received for the performance of qualified services (health, law, engineering, architecture, accounting, actuarial science, performing arts or consulting) and for services provided by certain small businesses.
(Sec. 504) Allows the exclusion for foster care payments to apply to such payments made by qualified placement agencies (as well as by States and local governments).
(Sec. 505) Amends IRC and the Employee Retirement Income Security Act of 1974 (ERISA) to set forth special rules for determining certain additional premium rates to be paid to the Pension Benefit Guaranty Corporation by defined benefit plans for specified plan years.
(Sec. 506) Allows certain expenses of elementary and secondary school teachers to be taken into account in determining their adjusted gross income.
Subtitle B: Technical Corrections - Makes technical corrections to various Acts, including the Economic Growth and Tax Relief Reconciliation Act of 2001, the Community Renewal Tax Relief Act of 2000, the Tax Relief Extension Act of 1999, the Taxpayer Relief Act of 1997, and the Balanced Budget Act of 1997.
(Sec. 518) Amends the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16) to revise provisions relating to increases in: (1) the adoption tax credit and exclusion for employer-provided adoption assistance; and (2) the dependent care tax credit.
Title VI: Unemployment Assistance - Temporary Extended Unemployment Compensation Act of 2002 - Allows States to opt to enter into agreements for a program of temporary extended unemployment compensation (TEUC), which extends UC for up to an additional 13 weeks for individuals who have exhausted their 26 weeks of regular UC coverage.
Sets forth TEUC program requirements for Federal-State agreements, coordination with other UC benefits, formulae for determining amounts in individual TEUC accounts and weekly benefits, payments to States, and financing.
Requires the State agencies that opt to make TEUC agreements to make TEUC payments to individuals who: (1) either first exhausted all rights to regular compensation under the State law on or after the first day of the week that includes September 11, 2001, or have their 26th week of regular compensation under the State law end on or after the first day of such week; and (2) do not have any rights to regular compensation under the State law of any other State, and are not receiving compensation under the unemployment compensation law of any other country.
Applies TEUC agreements with States to weeks of unemployment: (1) beginning on or after the first day of the first week after the date on which such agreement is entered into; and (2) ending before January 6, 2003.
(Sec. 609) Amends SSA provisions relating to transfers of funds from the Federal unemployment account to State accounts in the Unemployment Trust Fund to: (1) repeal certain provisions added by the Balanced Budget Act of 1997; and (2) provide for special transfers in FY 2002.
Title VII: Displaced Worker Health Insurance Credit - Amends the IRC to establish a displaced worker health insurance credit.
(Sec. 701) Requires, in the application of specified provisions and alternative State mechanisms under the Public Health Service Act (PHSA), increased access to health insurance for individuals eligible for the displaced worker health insurance credit, through the use of guaranteed issue, qualified high risk pools, and other appropriate State mechanisms. Amends PHSA to direct the Secretary of Health and Human Services to make: (1) a grant to each State that has not created a qualified high risk pool, for the State's costs of creation and initial operation of such a pool; and (2) a matching grant to cover 50 percent of the losses incurred by a State in operating such a pool it has established that restricts the premiums charged to no more than 150 percent of the premium for applicable standard risk rates and that offers a choice of two or more coverage options.
(Sec. 702) Amends the IRC to direct the Secretary of the Treasury to establish a program to make advance payments to providers of health insurance on behalf of individuals eligible for the displaced worker health insurance credit.
Title VIII: Employment and Training Assistance and Temporary Health Care Coverage Assistance - Amends the Workforce Investment Act of 1998 to authorize the Secretary of Labor to award national emergency grants to applicant Governors of States or outlying areas to provide employment and training assistance and temporary health care coverage assistance to workers affected by major economic dislocations, including those caused by the terrorist attacks of September 11, 2001.
Title IX: Temporary State Health Care Assistance - Amends title XXI (State Children's Health Insurance) (SCHIP) of SSA to make appropriations for temporary State health care assistance. Requires such funds to be allotted in specified amounts to States and available for expenditure through the end of 2002. Directs States to use such funds only to provide health care items and services, other than those for which Federal assistance is prohibited under SCHIP or Medicaid.
Title X: Social Security Held Harmless; Budgetary Treatment of Act - Provides that this Act shall have no impact on the Social Security trust funds.
(Sec. 1002) Designates certain amounts under this Act as emergency requirements under the Balanced Budget and Emergency Deficit Control Act of 1985.