15-Mar-12
INCOME TAX EXPENDITURES RANKED BY TOTAL FISCAL YEAR 2013-2017 PROJECTED REVENUE EFFECT
(in millions of dollars)
Provision
2013
2013-17
132
59
150
78
63
72
149
172
126
170
5
74
62
163
52
60
153
151
64
82
1
135
122
123
164
145
65
133
7
2
166
111
100
139
136
99
4
71
165
80
107
85
98
162
159
75
8
101
110
16
134
138
154
105
15
57
157
118
140
58
61
124
10
168
173
3
51
90
79
152
103
31
128
47
93
106
146
73
56
37
66
120
40
86
141
36
97
9
115
92
143
19
81
127
161
167
155
23
39
144
116
54
20
88
45
42
Exclusion of employer contributions for medical insurance premiums and medical care
Deductibility of mortgage interest on owner-occupied homes
401(k)-type plans
Accelerated depreciation of machinery and equipment (normal tax method)
Exclusion of net imputed rental income
Capital gains (except agriculture, timber, iron ore, and coal)
Employer plans
Deductibility of nonbusiness State and local taxes other than on owner-occupied homes
Deductibility of charitable contributions, other than education and health
Exclusion of interest on public purpose State and local bonds
Deferral of income from controlled foreign corporations (normal tax method)
Step-up basis of capital gains at death
Capital gains exclusion on home sales
Social Security benefits for retired workers
Exclusion of interest on life insurance savings
Deductibility of State and local property tax on owner-occupied homes
Self-Employed plans
Individual Retirement Accounts
Exception from passive loss rules for $25,000 of rental loss
Deduction for US production activities
Exclusion of benefits and allowances to armed forces personnel
Deductibility of medical expenses
Exclusion of employee meals and lodging (other than military)
Child credit
Social Security benefits for disabled workers
Exclusion of workers' compensation benefits
Credit for low-income housing investments
Self-employed medical insurance premiums
Expensing of research and experimentation expenditures (normal tax method)
Exclusion of income earned abroad by U.S. citizens
Exclusion of veterans death benefits and disability compensation
Deductibility of charitable contributions (education)
Lifetime Learning tax credit
Deductibility of charitable contributions (health)
Exclusion of interest on hospital construction bonds
HOPE tax credit
Inventory property sales source rules exception
Treatment of qualified dividends
Social Security benefits for spouses, dependents and survivors
Graduated corporation income tax rate (normal tax method)
Exclusion of interest on bonds for private nonprofit educational facilities
Exclusion of reimbursed employee parking expenses
Exclusion of scholarship and fellowship income (normal tax method)
Earned income tax credit
Additional deduction for the elderly
Carryover basis of capital gains on gifts
Credit for increasing research activities
Lifetime Learning tax credit
Parental personal exemption for students age 19 or over
Energy investment credit
Medical Savings Accounts / Health Savings Accounts
Credit for employee health insurance expenses of small business.
Premiums on group term life insurance
Qualified Tuition Programs
New technology credit
Exclusion of interest on owner-occupied mortgage subsidy bonds
Special ESOP rules
Employer provided child care exclusion
Tax credit for orphan drug research
Exclusion of interest on rental housing bonds
Deferral of income from installment sales
Credit for child and dependent care expenses
Excess of percentage over cost depletion, fuels
Exclusion of GI bill benefits
Deferral of interest on U.S. savings bonds
Exclusion of certain allowances for Federal employees abroad
Exemption of credit union income
Exclusion of interest for airport, dock, and similar bonds
Expensing of certain small investments (normal tax method)
Low and moderate income savers credit
Deductibility of student-loan interest
30% credit for residential purchases/installations of solar and fuel cells
Exclusion of parsonage allowances
Capital gains treatment of certain income
New markets tax credit
Exclusion of interest on student-loan bonds
Exclusion of public assistance benefits (normal tax method)
Capital gains exclusion of small corporation stock
Exclusion of interest spread of financial institutions
Exclusion of interest on bonds for water, sewage, and hazardous waste facilities
Accelerated depreciation on rental housing (normal tax method)
Assistance for adopted foster children
Tax incentives for preservation of historic structures
Exclusion for employer-provided transit passes
Special Blue Cross/Blue Shield deduction
Excess of percentage over cost depletion, nonfuel minerals
Tribal Economic Development Bonds
Expensing of exploration and development costs, fuels
Qualified school construction bonds
Empowerment zones, Enterprise communities, and Renewal communities
Distributions from retirement plans for premiums for health and long-term care insurance
Tax credit and deduction for clean-fuel burning vehicles
Exclusion of interest on small issue bonds
Exclusion of certain foster care payments
Deductibility of casualty losses
Exclusion of veterans pensions
Premiums on accident and disability insurance
Credit for investment in clean coal facilities
Expensing of multiperiod timber growing costs
Exclusion of railroad retirement system benefits
Work opportunity tax credit
Tax exemption of certain insurance companies owned by tax-exempt organizations
Exclusion of utility conservation subsidies
Exclusion of interest on bonds for Financing of Highway Projects and rail-truck transfer facilities
Expensing of certain multiperiod production costs
Industrial CO2 capture and sequestration tax credit
Footnotes at end of table.
180,580
100,910
72,740
33,180
51,080
62,040
52,330
46,260
39,770
36,210
41,810
23,860
23,440
25,620
25,150
22,320
19,580
19,650
15,380
14,500
14,900
9,910
10,290
18,390
8,230
7,790
7,380
5,970
5,070
5,800
5,650
4,610
3,920
4,490
4,280
580
3,730
21,900
3,890
3,300
2,900
3,290
3,290
3,155
2,780
2,070
4,230
13,710
2,800
1,510
2,070
1,750
2,120
1,890
1,900
1,460
1,700
1,580
1,120
1,240
1,350
1,620
1,260
1,190
1,250
1,120
1,160
970
940
1,130
900
1,030
770
830
930
660
750
280
600
580
90
560
570
560
590
590
480
790
580
460
360
180
340
400
350
340
360
410
280
290
620
210
210
230
170
60
1,012,320
606,420
428,760
374,640
337,380
321,470
298,040
295,050
238,720
227,500
216,020
182,210
171,110
149,280
140,630
140,630
112,200
100,080
99,810
81,080
68,980
63,170
53,240
53,130
45,110
42,970
39,300
37,760
33,270
32,160
31,210
27,470
27,210
26,970
26,890
23,710
22,140
21,900
20,190
18,670
18,230
17,970
17,690
17,162
16,600
16,440
14,190
13,710
13,410
12,210
11,820
11,680
11,020
10,390
9,330
9,170
9,100
8,970
8,520
7,790
7,300
7,040
6,860
6,710
6,650
6,210
6,130
6,130
6,040
5,510
5,130
5,000
4,520
4,310
4,280
4,130
4,010
3,850
3,730
3,640
3,480
3,230
3,170
3,170
3,130
3,040
3,040
2,950
2,530
2,330
2,200
2,110
2,110
1,980
1,980
1,960
1,830
1,710
1,520
1,260
1,190
1,080
1,020
1,000
900
840
Page 1 of 2
INCOME TAX EXPENDITURES RANKED BY TOTAL FISCAL YEAR 2013-2017 PROJECTED REVENUE EFFECT
(in millions of dollars)
Provision
2013
2013-17
121
33
108
44
148
91
26
48
102
30
25
13
38
50
35
21
76
156
67
70
95
158
17
27
14
53
147
83
87
32
55
169
12
109
43
46
49
84
89
114
125
34
28
41
112
160
11
142
6
18
29
96
104
113
117
119
129
130
131
171
94
22
69
24
67
137
77
Adoption credit and exclusion
Advanced Energy Property Credit
Credit for holders of zone academy bonds
Expensing of certain capital outlays
Exclusion of military disability pensions
Exemption of certain mutuals' and cooperatives' income
Amortize all geological and geophysical expenditures over 2 years
Income averaging for farmers
Education Individual Retirement Accounts
Credit for energy efficient appliances
Natural gas distribution pipelines treated as 15-year property
Capital gains treatment of royalties on coal
Capital gains treatment of certain timber income
Expensing of reforestation expenditures
Expensing of exploration and development costs, nonfuel minerals
Credit for holding clean renewable energy bonds
Ordinary income treatment of loss from small business corporation stock sale
Income of trusts to finance supplementary unemployment benefits
Discharge of mortgage indebtedness
Exceptions from imputed interest rules
Credit to holders of Gulf Tax Credit Bonds.
Additional deduction for the blind
Alcohol fuel credits
Allowance of deduction for certain energy efficient commercial building property
Exclusion of interest on energy facility bonds
Special alternative tax on small property and casualty insurance companies
Exclusion of special benefits for disabled coal miners
Special rules for certain film and TV production
Tax credit for certain expenditures for maintaining railroad tracks
Qualified energy conservation bonds
Small life insurance company deduction
Exclusion of interest on veterans housing bonds
Exception from passive loss limitation for working interests in oil and gas properties
Exclusion of interest on savings bonds redeemed to finance educational expenses
Deduction for endangered species recovery expenditures
Treatment of loans forgiven for solvent farmers
Deferral of gain on sale of farm refiners
Deferral of tax on shipping companies
Investment credit for rehabilitation of structures (other than historic)
Discharge of student loan indebtedness
Credit for disabled access expenditures
Advanced nuclear power production credit
Credit for construction of new energy efficient homes
Exclusion of gain or loss on sale or exchange of certain brownfield sites
Exclusion of employer-provided educational assistance
Tax credit for the elderly and disabled
Alternative fuel production credit
Tax credit for health insurance purchased by certain displaced and retired individuals
Deferred taxes for financial firms on certain income earned overseas
Bio-Diesel and small agri-biodiesel producer tax credits
Credit for energy efficiency improvements to existing homes
Recovery Zone Bonds
Deduction for higher education expenses
Special deduction for teacher expenses
Welfare-to-work tax credit
Employer-provided child care credit
Employee retention credit for employers affected by Hurricane Katrina, Rita, and Wilma
Exclusion for benefits provided to volunteer EMS and firefighters
Making work pay tax credit
Build America Bonds
Expensing of environmental remediation costs
Deferral of gain from dispositions of transmission property to implement FERC restructuring policy
Cancellation of indebtedness
Temporary 50% expensing for equipment used in the refining of liquid fuels
Credit for homebuyer
Refundable Premium Assistance Tax Credit
Accelerated depreciation of buildings other than rental housing (normal tax method)
380
380
180
110
130
120
160
90
80
140
90
80
80
80
70
70
60
40
250
50
50
40
110
100
30
40
40
80
80
30
30
20
30
20
20
20
20
20
20
20
20
0
20
30
40
10
10
10
0
0
0
0
0
0
0
0
0
0
0
0
-170
-180
-20
530
-1,150
0
-7,370
730
700
700
660
660
620
480
480
480
460
440
430
430
430
420
350
300
300
250
250
240
240
210
210
200
200
200
160
160
150
150
140
130
130
120
100
100
100
100
100
100
80
70
40
40
40
10
10
0
0
0
0
0
0
0
0
0
0
0
0
-730
-820
-1,100
-3,020
-3,140
-10,510
-35,790
Source: Office of Management and Budget, Budget of the United States Government Fiscal Year 2012, Analytical Perspectives, Table 17-3.
Available at http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/teb2013.xls
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