Tax Provisions in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010: Extension of Current Tax Rates, Changes to Estate and Gift Taxes, Enactment of a Partial Payroll Tax Holiday, Business Incentives and Other Extenders

Sullivan & Cromwell LLP - December 17, 2010
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President Obama signed today the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”). The Act includes provisions that: (i) extend the current individual income tax rates and the reduced rate of tax on dividends and long-term capital gains for two years; (ii) provide a 35% maximum estate and gift tax rate, subject to a $5 million exclusion amount; (iii) temporarily cut employee payroll taxes; (iv) extend certain investment incentives, including the bonus first-year depreciation deduction, for two years; and (v) temporarily extend a number of other expiring or expired individual and business tax provisions (the so-called “extenders”).