2009-04-21_Agenda - Laserfiche WebLink

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provision then taxes that car�ce{lation of debt income ratably over the followirrg fi�e years [�014 — 201:8). Temporary Reduttion Period for S Corporation Built-In Gains. This provision tempararily reduces the hafding period from ten years to se�en years for sales occurring in 2Q09 and 2014. ENERGY TAX INCEI�TIVES • Extension of the renewable eleetrieity productian credit. Extends for three years the period during which quafified facilities producing certain renewable electri�ity may be placed in servi�e for purpases of the e{ectricity production credit. • Issuance of new clean renewable energy bonds. Pravides $1.6 billion i� new clean renewable energy bonds �CREBs) thai may be is5ued by qualified issuers (public pawer providers, cooperati�e electric companies, etc.) to finance qualified. renewable energy facilities. Repeal of IimitationS an cre.dit f.or renewa[�le energy property. Eliminates the credit cap applicable to qua.lified small wind energy property. Also removes the rule that redu�es the basis of th.e property for purposes of claiming the c.redit if the property is finan�ed in whole ar in part by subsidized energy financing or with proceed from pri�ate activity bonds. Treasury �epartment's Financial Stal�ility Plan SEparate from the Stimulus Package, the ireasury Depar#ment recently announced a multi-pronged pragram intended to help lay the groundwork far restoring the flows of credii to households and businesses: Howe�er, at this time the Treasury Department ha� offered lirr�ited details regarding this plan. More details will be provided on�e they are released by the Treasury Department Listed below are major components of the plan: Expand the existing Term Asset-Backed Securities Lending Facility (TALF) from $Zd0 billion to as much as $1 trillion in order t.o restart thE securitized credit markets that in recent years supported a substantial portion of lendir�g #a householc[s, students, small businesses, and others. TALF would also expand ta include commercial mort�a�e.-_backed_securities CMBSi. TALF combines capital pro�ided by the TARP with funding from the Federal Reserve in order to promote lending by increasing in�estor demand for securitized �oans. • A Public Private In�e�tment Fund, jointly run by the Treasury and the Federal Reserve, with #inanting from pri�aYe in�estors, to buy up hard-ta-sell assets that ha�� bogged down banks and finantial institutions for the past year. Treas�ry Secret.ary Geithner said tF�e new #uncE, often described as a"bad bank" for halding taxic assets, would start with $500 billion with a goal of e�entually buying up to $1 trillion in assets. • Dire�t Capital injections into banks, using funds from the remaining $350 6ilfion from the Troubled Asset Relief Program (TARP), passed last year by the eush Administration. • An Extension of the FDIC's Temparary Liquidity Guarantee Pragrarn to October 31, 2009. This program is intended to pro�ide more liquidity to 6anks and financial institutions. e A new framework of gavernance and o�ersight to help ensure that banks receiving funds are held responsible for apprapriate use of thase funds through stranger canditions on lending, dividends, and executi�e compensation along with enhanced reporting to the public.