Other nuggets in the fiscal cliff bill: Rum, electric vehicles and motor sports
January 1st, 2013
02:58 PM ET
1 year ago

Other nuggets in the fiscal cliff bill: Rum, electric vehicles and motor sports

Washington (CNN) - So what is really in the fiscal cliff legislation?

Of course, there are the widely-known sticking points the two sides have been haggling over for weeks: extensions of the income tax cuts for middle and low-income earners, the current estate tax rate, and the alternative minimum tax.

But there's also a provision on two- and three-wheeled electric vehicles, renewable energy, and rum.

The American Taxpayer Relief Act of 2012, which passed the Senate early Tuesday morning, is a vehicle for a number of regular year-end tax extenders.

Among the extensions is the excise tax carry-over on rum produced in Puerto Rico and the Virgin Islands. It's a federal tax of which most is paid back to the islands.

There's also the extension of a tax credit for purchase of some electric vehicles with two or three wheels, such as scooters. It was a tax break included in the American Recovery and Reinvestment Act of 2009 and covers up to 10% of the vehicle's cost, or at most $2,500.

The tax document for that particular credit – Internal Revenue Service form 8834 – is one and a half pages, accompanied by two pages of instructions.

Congress also extended the "Indian employment credit" for businesses that hire individuals who are members of a Native American tribe, work on the tribal land, and live on or near the reservation.

And they extended the depreciation model for motor sports complexes – facilities that hold at least seven days of racing, seat at least 70,000 people, and have concession stands that benefit charitable organizations.

The legislation also included extensions of tax credits for research and development, low income housing, and an accelerated depreciation model for certain leasers and restaurants.

It included a number of energy tax provisions as well, including one relating to coal produced at "Indian coal facilities" and extensions of energy efficient home and appliance purchases.

How are the changes enacted?

For most extensions, it requires just a simple swap of the date.

"Subsection (g) of section 179E is amended by striking `December 31, 2011' and inserting `December 31, 2013,' " read the provision extending the mine safety equipment deduction. "The amendment made by this section shall apply to property placed in service after December 31, 2011."

– CNN's Gregory Wallace, Lisa Desjardins and CNNMoney.com's Caleb Silver contributed to this report


Filed under: Energy • Fiscal Cliff
soundoff (85 Responses)
  1. Disgusted

    Rum does keep the government going. How would the lawmakers party without it?

    January 2, 2013 09:42 am at 9:42 am |
  2. Larry L

    I'd like to see each piece of pork on that bill directly tied to the Congressman championing it's passage. If that industry/lobby donated to the campaigns they should completely recuse themselves from the process – and certainly not hold the bill hostage until they get their pork. If they were regular civil servants they'd be arrested for taking bribes.

    January 2, 2013 09:45 am at 9:45 am |
  3. jpmichigan

    It is a very sad day! The people we, the People, voted for once again failed us. The favor lobbies more than the People of USA. It shows their choice over what the SLIDE in a bill to please the lobbies that line their pockets. Yet, they fail to pass the bill to help those affected by Sandy! Choices have consequences, just like elections. Mid term elections are coming up remember the power of the people is the voting booth.

    January 2, 2013 09:53 am at 9:53 am |
  4. Kelby in Houston, TX

    It's good to know that CNN will take the serious news of the day and turn it into trivial tripe to feed the mindless masses. journalism in America is dead and CNN killed it

    January 2, 2013 09:59 am at 9:59 am |
  5. Porsche

    obama needs a beer summit to celebrate.. he also likes pep rallys...

    January 2, 2013 10:08 am at 10:08 am |
  6. celisti

    it's crazy that they extended child credits without capping it, which is utterly unfair and encourage overpopulation, with expense of single people and no-kids families.

    January 2, 2013 10:19 am at 10:19 am |
  7. Hawg4774

    How can the congress give a tax break to a coal producer who has a mine on Indian land then turn around and penalize the utility company who uses the coal. What a bunch of morons!!

    January 2, 2013 10:23 am at 10:23 am |
  8. celisti

    congress just couldn't help themselves to keep all those junk tax breaks to special interests in any serious bill. no wonder American people are really angry at government.

    January 2, 2013 10:24 am at 10:24 am |
  9. Wilson

    And so our paychecks drop another 2%. How many more % will they drop with the additional taxes from obamacare?

    January 2, 2013 10:25 am at 10:25 am |
  10. jamer

    a pep talk in every tax dollar collected! let the goverment pay all school taxes over $2000 per household earning under90k

    January 2, 2013 10:27 am at 10:27 am |
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