Economic Security and Worker Assistance Act of 2001 -
Title I: Individual Provisions - Amends the Internal Revenue Code (IRC) to provide for a supplemental rebate.
(Sec. 102) Accelerates the 25 percent individual income tax rate for reductions after June 30, 2001.
Title II: Business Provisions - Amends the Internal Revenue Code 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 section 179 expensing limitation to $35,000.
(Sec. 203) Repeals, with respect to the alternative minimum tax, the preference for depreciation for property placed in service after December 31, 2001, the 90 percent limitation on the alternative minimum foreign tax credit, and the 90 percent limitation on net operating loss deductions.
(Sec. 204) Extends the net operating loss carryback period from two to five years for any taxable year ending during 2001 or 2002 and temporarily suspends the 90 percent limitation on certain net operating losses.
(Sec. 205) Includes as 15 year property for depreciation purposes any qualified leasehold improvement property. Defines such property as interior improvements, meeting specified conditions, to nonresidential property.
Title III: Extension of Certain Expiring Provisions - Subtitle A: Extensions - Extends: (1) the allowance of nonrefundable personal credits against an individual's regular and alternative minimum tax liability; (2) the credit for qualified electric vehicles; (3) the credit for electricity produced from renewable sources; (4) the work opportunity credit; (5) the welfare-to-work credit; (6) the phase down of the deduction for clean-fuel vehicles and certain refueling property; (7) the taxable income limit on percentage depletion for oil and natural gas produced from marginal wells; (8) the issuance of qualified zone academy bonds; (9) increased coverover payments on distilled spirits to Puerto Rico and the Virgin Islands; (10) provisions concerning parity in the application of certain limits to mental health benefits; (11) temporary special rules for taxation of life insurance companies; (12) the availability of medical savings accounts; (13) incentives for Indian employment and property on Indian reservations; (14) controlled foreign corporations exemption for active financing.
(Sec. 315) Repeals a requirement for approved diesel or kerosene terminals.
Subtitle B: Temporary Assistance for Needy Families (TANF Program) - Reauthorizes Temporary Assistance for Needy Families (TANF) supplemental grants for population increases under part A of title IV of the Social Security Act for FY 2002.
(Sec. 322) Provides for a one-year extension of the contingency fund under the TANF program.
Title IV: Tax Benefits for Area of New York City Damaged in Terrorist Attacks on September 11, 2001 - Subchapter Y: New York City Liberty Zone Benefits - Establishes a special allowance for certain property acquired after September 10, 2001 and placed into service by December 31, 2006 (or December 31, 2009 for nonresidential real and rental property).
Provides for a 5-year recovery period for depreciation of certain leasehold improvements.
Increases expensing for certain depreciable business assets and treats a qualified New York Liberty Bond, except those intended to be used for movable fixtures and equipment, as an exempt facility bond.
Title V: Relief Provision for Victims of Terrorist Attacks, Presidentially Declared Disasters, and Certain Other Disasters - Subtitle A: Relief Provisions for Victims of Terrorist Attacks - Exempts from income taxes any individual who dies as a result of wounds or injury incurred from the terrorist attacks on the United States on April 19, 1995, or September 11, 2001, or who dies as a result of illness incurred from a terrorist attack involving anthrax occurring on or after September 11, 2001, and before January 1, 2002 (such attacks).
(Sec. 502) Excludes from gross income certain death benefits paid by an employer to a victim of such attacks.
(Sec. 503) Sets special (lowered) estate tax rates applicable to (1): combat zone related deaths of members of the armed forces; and (2) victims of such attacks.
(Sec. 504) Provides for the treatment of payments by charitable organizations as a result of such attacks as exempt payments.
(Sec. 505) Excludes from gross income certain cancellations of indebtedness.
Subtitle B: Other Relief Provisions - Excludes from gross income qualified disaster relief payments. Defines a qualified disaster as: (1) a disaster which results from terroristic or military action; (2) a presidentially declared disaster; (3) a disaster which results from an accident involving a common carrier, or from any other event, which is determined by the Secretary to be of a catastrophic nature; or (4) a disaster which is determined by a Federal, State, or local authority (as determined by the Secretary) to warrant assistance from a Federal, State, or local government or agency.
(Sec. 512) Provides for the extension of certain tax deadlines due to a presidentially declared disaster or terroristic or military actions.
(Sec. 513) Excludes from gross income disability income received due to a terroristic or military action which occurred either inside or outside the United States.
Removes the restriction applicable to the exclusion of taxes for certain U.S. military or civilian employees dying as a result of injuries that such injuries be sustained overseas, thus providing for nontaxation in the event of sustaining such injuries within the United States.
(Sec. 514) Amends the Air Transportation Safety and System Stabilization Act to redefine the term airline-related deposit.
(Sec. 515) Imposes an excise tax on persons acquiring structured settlement payment rights in structured settlement factoring transactions, subject to exception.
(Sec. 516) Revises the special rules for credits and deductions concerning estates, trusts, and beneficiaries to allow each: (1) estate a $600 deduction; (2) trust a $100 deduction; (3) trust which, under its governing instrument, is required to distribute all of its currently a deduction of $300; and (4) qualified disability trust a deduction equal to the personal exemption amount. States that such deductions shall be in lieu of personal exemptions.
(Sec. 517) Sets forth rules permitting the disclosure of specified tax information to appropriate Federal agencies engaged in terrorism and national security investigations. Prohibits such disclosure after December 31, 2003.
Title VI: Miscellaneous and Technical Provisions - Subtitle A: General Miscellaneous Provisions - Amends IRC to allow electronic 1099 forms.
(Sec. 602) 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. 603) Revises requirements 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 small businesses.
(Sec. 604) 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. 605) Amends IRC and 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. 606) 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 IRC, 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. 618) 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 VII: Unemployment Assistance - Temporary Extended Unemployment Act of 2001- 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.
(Sec. 702) 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 them to individuals who: (1) either first exhausted all rights to regular compensation under State or Federal law with respect to a benefit year (excluding any benefit year ending before March 15, 2001); 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 employment compensation law of any other country.
(Sec. 708) 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 1, 2003.
(Sec. 709) Amends the Social Security Act to provide for a special transfer of funds in FY 2002 from the Federal unemployment account to State accounts in the Unemployment Trust Fund.
Title VIII: Displaced Worker Health Insurance Credit - Amends the IRC to establish a displaced worker health insurance credit.
(Sec. 802) 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 IX: 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 X: 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 XI: Social Security Held Harmless; Budgetary Treatment of Act - Provides 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.