Under current law, long-term capital gains and dividend income are taxed at a maximum rate of 15 percent through 2008.
The deduction phases out dollar-for dollar to the extent the business's annual investments exceed $400,000.
A second provision provides a "CFC look-through" rule exception from Subpart F for cross-border payments of dividends, interest, rents, and royalties that are funded with active income that has not been repatriated.
The provision allows taxpayers to elect to amortize the costs of creating or acquiring a musical composition over five years.
The provision requires that a taxpayer make a good faith down payment of 20 percent of any lump sum offer-in-compromise with any application for an offer.
The provision clarifies that only wages allocable to domestic production gross receipts are included for purposes of this limitation.
However, the Act also includes a "stacking provision" that requires the FEIE to be excluded against the lowest tax brackets first.
(Previously, the figure was the excess of 16% of the salary of a federal worker grade G-14 Step 1, with no cap.)
The Treasury was given authority to adjust this exclusion amount depending on cost-of-living factors in differing world metropolises.
The TIPRA has been criticised by commentators and Democratic congressional representatives for providing what these critics believe are tax cuts only for the wealthy and corporations, doing little for low- and middle-income citizens and further increasing the federal budget deficit.
A provision amending the Internal Revenue Code of 1986 imposed of 3 percent withholding on certain payments made to vendors by government entities, starting on January 1, 2011.