Daily Tax Update - July 16, 2010

SENATE APPROVES MALTA AND NEW ZEALAND TAX TREATIES: Yesterday, the Senate ratified a new tax treaty with Malta and a new protocol to the existing US treaty with New Zealand. The treaties were passed by unanimous consent.

  • Sen. Dick Lugar (R-IN) commended the Senate for giving its advice and consent to the US-Malta Tax Treaty and the Protocol amending the existing US-New Zealand Tax Treaty. Lugar said, "As the United States considers how to create jobs and maintain economic growth, we must strengthen the ability of American businesses to operate successfully in foreign markets. To this end, the US government has attempted to facilitate exports through a number of strategies, including tax treaties. Tax treaties lower effective tax rates for American companies selling American goods overseas while ensuring that foreign companies pay their fair share of taxes when operating in the United States. The tax treaties with Malta and New Zealand strengthen economic and strategic ties to these allies while lowering costs for American businesses.”
  • For additional information, contact Philip R. West - pwest@steptoe.com.

TAX BILLS INTRODUCED JULY 15TH:
H.R.5744: To amend the Internal Revenue Code of 1986 to extend the credit for energy efficient appliances.
Sponsor: Rep Yarmuth, John A. [KY-3] (introduced 7/15/2010) Cosponsors (None)

H.R.5757: To amend the Internal Revenue Code of 1986 to extend and modify the credits for alcohol used as a fuel, and for other purposes.
Sponsor: Rep Fortenberry, Jeff [NE-1] (introduced 7/15/2010) Cosponsors (None)

H.R.576: To amend the Internal Revenue Code of 1986 to provide for the creation of disaster protection funds in the District of Columbia by property and casualty insurance companies for the payment of policyholders' claims arising from natural catastrophic events.
Sponsor: Rep Norton, Eleanor Holmes [DC] (introduced 7/15/2010) Cosponsors (None)

H.R.5763: To amend the Internal Revenue Code of 1986 to increase for 2 years the residential energy credit and the investment tax credit with respect to solar property with a nameplate capacity of less than 20 kilowatts.
Sponsor: Rep Polis, Jared [CO-2] (introduced 7/15/2010) Cosponsors (1)

H.R.5764: To amend the Internal Revenue Code of 1986 to reinstate estate and generation-skipping taxes, and for other purposes.
Sponsor: Rep Sanchez, Linda T. [CA-39] (introduced 7/15/2010) Cosponsors (4)

H.R.5765: To amend the Internal Revenue Code of 1986 to increase for 2 years the residential energy credit and the investment tax credit with respect to solar property with a nameplate capacity of less than 20 kilowatts.
Sponsor: Rep Sanchez, Linda T. [CA-39] (introduced 7/15/2010) Cosponsors (1)

H.R.5767: To amend the Internal Revenue Code of 1986 to allow a credit for equity investments in high technology and biotechnology small business concerns developing innovative technologies that stimulate private sector job growth.
Sponsor: Rep Van Hollen, Chris [MD-8] (introduced 7/15/2010) Cosponsors (4)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.