Introduction
H.R. 4213, or the American Jobs and Closing Tax Loopholes Act of 2010, is a piece of legislation aimed at stimulating job creation and economic growth in the aftermath of the 2008 financial crisis. The bill covers a wide range of provisions, including tax credits, unemployment benefits, and funding for infrastructure projects. This article aims to provide a comprehensive overview of H.R. 4213, its key provisions, and its implications for businesses, workers, and the economy. By exploring government resources and recent updates, we can gain insights into the significance of this legislation and its impact on various sectors of the economy.
Background
H.R. 4213 was introduced in the House of Representatives in December 2009 as a response to the ongoing economic recession. The bill included a package of tax incentives and economic stimulus measures aimed at boosting job creation and economic growth. After several rounds of negotiation, the bill was finally passed by the House and Senate in June 2010, and it was signed into law by President Barack Obama in July 2010.
Key Provisions
H.R. 4213 is a comprehensive piece of legislation that covers a wide range of provisions aimed at stimulating job creation and economic growth. The key provisions of the bill include:
Unemployment Benefits Extension: The bill extended unemployment benefits for workers who had exhausted their benefits by up to 99 weeks. This was a critical provision at a time when the unemployment rate was hovering around 10%, and many Americans were struggling to find work.
COBRA Health Insurance Subsidies: The bill provided a 65% subsidy for workers who were eligible for COBRA health insurance coverage. This helped many people who had lost their jobs to maintain their health insurance coverage, which was critical in a time when health care costs were rising.
Infrastructure Funding: The bill included funding for infrastructure projects such as highways, bridges, and public transportation. This was aimed at creating jobs in the construction sector and stimulating economic activity.
Tax Incentives for Businesses: The bill included several tax incentives aimed at encouraging businesses to invest in new equipment and facilities and hire new workers. For example, businesses were allowed to write off 50% of the cost of new equipment, and businesses that hired new workers were eligible for tax credits.
Implications for Businesses
H.R. 4213 had significant implications for businesses, particularly in terms of tax incentives and hiring. The tax incentives provided by the bill were aimed at encouraging businesses to invest in new equipment and facilities and hire new workers. This was critical at a time when many businesses were struggling with the economic recession and needed a boost to help them stay afloat.
Additionally, the unemployment benefits extension and COBRA health insurance subsidies provided by the bill helped many workers maintain their financial stability during a difficult time. This, in turn, helped businesses maintain their customer base and keep their operations running.
Implications for Workers
H.R. 4213 had significant implications for workers, particularly in terms of unemployment benefits extension and COBRA health insurance subsidies. These provisions provided a critical safety net for workers who had lost their jobs and were struggling to make ends meet.
The bill also had significant implications for workers in the infrastructure and construction sectors, as funding for infrastructure projects created many new job opportunities. The tax incentives for businesses hiring new workers also provided an incentive for businesses to increase their recruitment efforts, which in turn, created new job opportunities for workers.
Recent Updates
H.R. 4213 was a critical piece of legislation in the aftermath of the 2008 financial crisis, and it had significant implications for businesses and workers alike. However, since its passage, there have been several updates to the bill’s provisions and legal interpretations.
For example, in 2011, the IRS released guidance on the tax incentives provided by the bill, clarifying many of the provisions and providing additional guidance for businesses on how to take advantage of the incentives.
In 2012, the unemployment benefits extension provided by the bill was allowed to expire, which had significant implications for many unemployed workers who relied on the benefits to make ends meet.
In 2020, as part of the CARES Act aimed at helping businesses affected by the COVID-19 pandemic, some of the tax incentives provided by H.R. 4213 were extended or modified. For example, businesses were allowed to carry back net operating losses for five years, and the employee retention tax credit was introduced.
Conclusion
H.R. 4213 was a critical piece of legislation aimed at stimulating job creation and economic growth in the aftermath of the 2008 financial crisis. The bill included a wide range of provisions, including tax incentives, unemployment benefits, and infrastructure funding. It had significant implications for businesses and workers alike and provided a critical safety net for many Americans struggling to make ends meet.
While some of the provisions of the bill have been modified or allowed to expire since its passage, its legacy lives on as a significant piece of legislation in the U.S. economic history. Through ongoing efforts to create jobs and spur economic growth, we can continue to build on the spirit of H.R. 4213 and strive towards a more prosperous and equitable economy for all Americans.
The Effects of H.R. 4213
H.R. 4213 is the Unemployment Compensation Extension Act of 2010 or “‘An Act to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes.”
This bill H.R. 4213 would amend the Internal Revenue Code of 1986 in order to extend certain provisions that were set to expire. More specifically, H.R. 4213 would extend the initial eligibility for any emergency unemployment compensation as well as complete Federal funding for any extended unemployment benefits through November 30, 2010.
H.R. 4213 was introduced on December 7, 2009 and sponsored by Democratic representative Charles Rangel of the 15th Congressional district of New York. It was passed by the House of Representatives two days later through a roll call vote where it received 241 ayes, 181 nays, and 12 not-votings. H.R. 4213 was then passed by the Senate on March 9, 2010 through a roll call vote with 62 ayes, 36 nays, and 2 not-votings. It was then signed into law by President Barack Obama on July 22, 2010.
Effects of H.R. 4213 on Stimulus Spending
Small Business Credits
• Eliminating certain fees on loans from the Small Business Administration.
• Increases the portion of loans the SBA guarantees from 75% to 90%.
Local Infrastructure
• Extend and expand Build America Bonds, Recovery Zone bonds, bonds funding spending by private entities on water and sewer infrastructure.
• Funding for state housing agency funding.
• Extend tax exemptions for municipal bonds through the Federal Home Loan banks for funding non-housing infrastructure.
• Extend breaks for financial institutions buying municipal bonds.
• Extend tax breaks for a year for costs of cleaning as well as sales or exchange of hazardous environmental sites.
• Reestablishes “Surface Transportation Funding Equity” to certain states.
Businesses and Consumers
• Creates New Markets Tax Credit which allows investors low-income community businesses to claim the credit against the Alternative Minimum Tax.
• Extends economically depressed Empowerment Zone designations.
• Extends economically depressed Renewal Communities designation allowing eligibility for certain tax incentives.
• Extends Renewal Communities of certain areas of Washington D.C. and the $5,000 credit for first-time homebuyers.
Pension Provisions
• Suspends certain rules relieving single-employer along with multi-employer pension plans from funding requirements.
• Creates a new defined contribution plan administrator disclosure rules.
Trade provisions
• Trade Adjustment Assistance for that expands a grant program for educational institutions that trains eligible workers.
• Allows amounts received in tariffs on fabrics to be used to support payments to suit makers in the U.S. through the Wool trust Fund.
• Recreates payment funding to U.S. cotton shirt makers through the cotton Trust Fund.
Effects of H.R. 4213 on Support for Working and Unemployed Individuals
Tax Cuts for Individuals
• Extends the choice of an itemized deduction for local and state sales taxes.
• Extends the additional deduction for local and state property taxes
• Extends the above-the-line deduction for eligible tuition and education expenses.
• Extends the above-the-line deduction for education professionals such as teachers for school supplies and books.
Unemployment Insurance
• Extends the Emergency Unemployment Compensation Program
• Extends the Extended Benefits program
• Extends the Federal Additional Compensation through November 2010
• Eliminates ineligibility for Emergency Unemployment Compensation Program for part-time employees.
Trust Fund for National Housing
• $1 billion one time capital infusion to the National Housing Trust Fund.
• Extends hold-harmless provisions preventing negative inflation rates from lowering the poverty line and which decreases eligibility for certain programs such as food stamps and Medicare.
• Consolidate federal income tax refunds exclusions from the income determinations used in federal assistance programs.