Tax Increase Prevention and Reconciliation Act of 2005

Sponsor: WILLIAM THOMAS (R-CA)

Tax Increase Prevention and Reconciliation Act of 2005 - Title I: Extension and Modification of Certain Provisions - (Sec. 101) Amends the Internal Revenue Code to extend through 2009: (1) the increased expensing allowance (from $25,000 to $100,000) for depreciable business property; (2) the increased threshold amount ($400,000) for determining reductions to the expensing allowance; (3) the period during which a taxpayer may revoke an election to expense depreciable business property; and (4) the eligibility of certain computer software for the increased expensing allowance. (Sec. 102) Extends through 2010 reductions in capital gains and dividends tax rates enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2003. (Sec. 103) Extends through 2008 exemptions from classification as subpart F income (income of controlled foreign corporations) for: (1) income that is derived in the active conduct of a banking, financing, or similar business or in the conduct of an insurance business; and (2) dividends, interest, rents, and royalties received by a controlled foreign corporation from a related controlled foreign corporation to the extent such items are attributable or properly allocable to non-subpart F income of the payor.

Taxation Topic assigned by the Congressional Research Service. CRS gives each bill one topic, based on the bill as introduced. This one carries 208 subject terms, so it spans well beyond that single label.