Job Creation and Worker Assistance Act of 2002

Job Creation and Worker Assistance Act of 2002 - Title I: Business Provisions - Amends the Internal Revenue Code (IRC) to allow an additional first year 30 percent depreciation allowance for property which has a recovery period of 20 years or less, is water utility property, or computer software, and which was acquired between September 10, 2001, and September 11, 2004, and is placed in service before January 1, 2005. Allows certain other property to qualify for such allowance under certain conditions if it has a recovery period of at least ten years or is transportation property. (Sec. 102) Extends the net operating loss carryback period from two to five years for such business losses arising between September 10, 2001, and September 11, 2004. Provides a temporary suspension of a specified limit on certain carryovers of such losses for purposes of an alternative tax deduction on them. Title II: Unemployment Assistance - Temporary Extended Unemployment Compensation Act of 2002 - Allows States to opt to enter into agreements for a program of temporary extended unemployment compensation (TEUC), which extends UC for up to an additional 13 weeks for individuals who have exhausted their 26 weeks of regular UC coverage. (Sec. 202) Sets forth TEUC program requirements for Federal-State agreements, coordination with other UC benefits, formulae for determining amounts in individual TEUC accounts and weekly benefits, payments to States, and financing. Requires the State agencies that opt to make TEUC agreements to make them to individuals who: (1) either first exhausted all rights to regular compensation under State or Federal law with respect to a benefit year (excluding any benefit year ending before March 15, 2001); and (2) do not have any rights to regular compensation under the State law of any other State, and are not receiving compensation under the unemployment compensation law of any other country. (Sec. 208) Applies TEUC agreements with States to weeks of unemployment: (1) beginning on or after the first day of the first week after the date on which such agreement is entered into; and (2) ending before January 6, 2003. (Sec. 209) Amends the Social Security Act to provide for a special transfer of funds in FY 2002 from the Federal unemployment account to State accounts in the Unemployment Trust Fund. Title III: Tax Incentives for New York City and Distressed Areas - Amends the IRC to expand work opportunity tax credit targeted categories to include certain New York Liberty Zone business employees, with respect to the period between September 10, 2001, and January 1, 2003, as members of a targeted group. Defines the Zone as the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York (NYC). Includes, under certain conditions, business employees of any trade or business located in NYC outside the Zone, as a result of the physical destruction or damage of such place of business by the September 11, 2001, terrorist attack. (Sec. 301) Includes a special allowance in the depreciation deduction for certain property in the Zone acquired after September 10, 2001. Provides a five-year recovery period for depreciation of certain leasehold improvement property in the Zone. Provides for the treatment of a qualified Zone bond as a tax-exempt facility bond. Requires such a bond to be issued for projects to acquire, build, rebuild, and renovate residential rental, nonresidential real, and public utility property in the Zone, or certain nonresidential real property elsewhere NYC if specified conditions are met. Provides for advance refunding of certain tax-exempt bonds used to finance facilities within NYC (or property functionally related and subordinate to facilities within NYC for the furnishing of water). Provides for an increase in IRC section 179 expensing allowed with respect to qualified NY Liberty Zone property placed in service during the taxable year. Extends from two years to five years the replacement period for nonrecognition of gain with respect to property which is compulsorily or involuntarily converted as a result of the terrorist attacks on September 11, 2001, in the Zone, if substantially all of the use of the replacement property is in NYC. Sets forth special rules to allow the Zone business employee credit against regular and minimum tax. Title IV: Miscellaneous and Technical Provisions - Subtitle A: General Miscellaneous Provisions - Amends IRC to allow electronic 1099 forms. (Sec. 402) Provides that income from the discharge of indebtedness of an S corporation that is excluded from the S corporation's income is not taken into account as an item of income by any shareholder and therefore does not increase the basis of any shareholder's stock in the corporation. (Sec. 403) Revises requirements concerning the nonaccrual experience method of accounting to make it available only for amounts to be received for the performance of qualified services (health, law, engineering, architecture, accounting, actuarial science, performing arts or consulting) and for services provided by certain small businesses. (Sec. 404) Allows the exclusion for foster care payments to apply to such payments made by qualified placement agencies (as well as by States and local governments). (Sec. 405) Amends IRC and the Employee Retirement Income Security Act of 1974 (ERISA) to set forth special rules for determining certain additional premium rates to be paid to the Pension Benefit Guaranty Corporation by defined benefit plans for specified plan years. (Sec. 406) Allows certain expenses of elementary and secondary school teachers to be taken into account in determining their adjusted gross income. Subtitle B: Technical Corrections - Makes technical corrections to various Acts, including the IRC, the Economic Growth and Tax Relief Reconciliation Act of 2001, the Community Renewal Tax Relief Act of 2000, the Tax Relief Extension Act of 1999, the Taxpayer Relief Act of 1997, and the Balanced Budget Act of 1997. (Sec. 418) Amends the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16) to revise provisions relating to increases in: (1) the adoption tax credit and exclusion for employer-provided adoption assistance; and (2) the dependent care tax credit. Title V: Social Security Held Harmless; Budgetary Treatment of Act - Provides that this Act shall have no impact on the Social Security trust funds. (Sec. 502) Designates certain amounts under this Act as emergency requirements under the Balanced Budget and Emergency Deficit Control Act of 1985. Title VI: Extensions of Certain Expiring Provisions - Extends various expiring IRC provisions, including: (1) the allowance of nonrefundable personal credits against regular and minimum tax liability; (2) the credit for qualified electric vehicles; (3) the credit for electricity produced from certain renewable resources; (4) the work opportunity credit; (5) the welfare-to-work credit; (6) the deduction for clean-fuel vehicles and certain refueling property; (7) taxable income limit on percentage depletion for oil and natural gas produced from marginal properties; (8) qualified zone academy bonds; (9) cover over of tax on distilled spirits; (10) availability of medical savings accounts; (11) incentives for Indian employment and property on Indian reservations; and (12) a revised subpart F exemption for active financing. (Sec. 610) Amends the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2002 (Public Law 107-116) to extend to health benefits or services furnished through December 31, 2003 (currently 2002) provisions of the Mental Health Parity Act of 1996 (which requires health plans, under ERISA and the Public Health Service Act, and IRC, with certain exceptions, to treat equally for mental and physical health coverage their limits on annual payments and on lifetime payments). (Sec. 611) Sets forth temporary special rules under the IRC for taxation of life insurance companies. (Sec. 615) Repeals a requirement for approved diesel or kerosene terminals. (Sec. 616) Reauthorizes Temporary Assistance for Needy Families (TANF) supplemental grants for population increases under part A of title IV of the Social Security Act for FY 2002. (Sec. 617) Provides for a one-year extension of the contingency fund under the TANF program.

Temporary Extended Unemployment Compensation Act of 2002 - Allows States to opt to enter into agreements for a program of temporary extended unemployment compensation (TEUC), which extends UC for up to an additional 13 weeks for individuals who have exhausted their 26 weeks of regular UC coverage. Sets forth TEUC program requirements for Federal-State agreements, coordination with other UC benefits, formulae for determining amounts in individual TEUC accounts and weekly benefits, payments to States, and financing. Requires the State agencies that opt to make TEUC agreements to make TEUC payments to individuals who: (1) either first exhausted all rights to regular compensation under the State law on or after the first day of the week that includes September 11, 2001, or have their 26th week of regular compensation under the State law end on or after the first day of such week; and (2) do not have any rights to regular compensation under the State law of any other State, and are not receiving compensation under the unemployment compensation law of any other country. Applies TEUC agreements with States to weeks of unemployment: (1) beginning on or after the first day of the first week after the date on which such agreement is entered into; and (2) ending before January 6, 2003.

Economic Recovery and Assistance for American Workers Act of 2001 - Title I: Supplemental Rebate for Individual Taxpayers - Amends the Internal Revenue Code to provide for a supplemental rebate for individuals who, before October 16, 2001, filed tax returns for 2000. Title II: Special Depreciation Allowance for Certain Property - Allows an additional first year 10 percent depreciation allowance for property which has a recovery period of 20 years or less, is water utility property, computer software, qualified leasehold improvement property, or eligible for the income forecast method of depreciation and which was acquired after September 10, 2001, and before September 11, 2002, and is placed in service before January 1, 2003. (Sec. 202) Increases, for 2002, the section 179 expensing limitation to $35,000. (Sec. 203) Extends the net operating loss carryback period from two to five years for such losses arising during 2001. Title III: Tax Incentives and Relief for Victims of Terrorism, Disasters, and Distressed Condition - Subtitle A: Tax Incentives for New York City and Distressed Areas - Expands work opportunity tax credit targeted categories to include certain New York Recovery Zone business employees, with respect to the period beginning after September 10, 2001, and ending before January 1, 2003, as members of a targeted group. Defines such zone as the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York, New York. Includes as a New York Recovery Zone business any business establishment which is located in the City of New York, New York, outside the New York Recovery Zone, as a result of the destruction or damage of such establishment by the September 11, 2001, terrorist attack. (Sec. 302) Provides for the treatment of any qualified NYC recovery bond as an exempt facility bond. Requires such a bond to be issued for a project located in the New York Recovery Zone or elsewhere in New York City if specified requirements are met. (Sec. 303) Sets forth special rules for gain or loss in the New York Recovery Zone with respect to property damages relating to the September 11, 2001, terrorist attack. (Sec. 304) Reinstates, for the period covering after December 31, 2001, and before January 1, 2003, special rules for qualified mortgage bond financed loans to victims of presidentially declared disasters and raises the home improvement loan limit from $15,000 to $25,000 in the case of a residence. (Sec. 305) Provides for a one year (2002) expansion of authority for Indian tribes to issue tax exempt private activity bonds. Subtitle B: Victims of Terrorism Tax Relief - Victims of Terrorism Tax Relief Act of 2001 - Part I: Relief for Victims of April 19, 1995, and September 11, 2001, Terrorist Attacks - Exempts from income taxes any individual who dies as a result of wounds or injury incurred as a result of the terrorist attacks against the United States on April 19, 1995, or September 11, 2001. (Sec. 312) Sets special (lowered) estate tax rates applicable to combat zone related deaths of members of the armed forces and victims of certain terrorist attacks. (Sec. 313) Provides for the treatment of payments by charitable organizations as a result of the September 11, 2001, terrorist attacks as exempt payments. (Sec. 314) Excludes from gross income any amount which would be includible in gross income by reason of the discharge of indebtedness of any taxpayer if the discharge is by reason of the death of an individual incurred as the result of the terrorist attacks against the United States on September 11, 2001. Part II: General Relief for Victims of Disasters and Terroristic or Military Actions - Excludes from gross income payments under the Air Transportation Safety and System Stabilization Act or any amount received by an individual as a qualified disaster relief payment. (Sec. 322) Provides for the extension of certain tax deadlines due to a presidentially declared disaster or terroristic or military actions. (Sec. 323) Requires the establishment in the national office of the Internal Revenue Service a disaster response team which, in coordination with the Federal Emergency Management Agency, shall assist taxpayers in clarifying and resolving Federal tax matters associated with or resulting from any Presidentially declared disaster or a terrorist or military action. (Sec. 324) Excludes from gross income: (1) certain employee death benefits paid by an employer upon the death of an employee from a terroristic or military action; (2) disability income received because of injuries from a terrorist or military action. Removes the restriction applicable to the exclusion of taxes for certain U.S. military or civilian employees dying as a result of injuries that such injuries be sustained overseas, thus providing for nontaxation in the event of sustaining such injuries within the United States. (Sec. 325) Amends the Air Transportation Safety and System Stabilization Act to redefine the term airline-related deposit. (Sec. 326) Provides for the coordination of this Act with the Air Transportation Safety and System Stabilization Act. Part III: Disclosure of Tax Information in Terrorism and National Security Investigations - Sets forth rules permitting the disclosure of specified tax information to appropriate Federal agencies engaged in terrorism and national security investigations. Prohibits such disclosures after December 31, 2003. Title IV: Extensions of Certain Expiring Tax Provisions - Provides for one year extensions of the following: (1) the allowance of nonrefundable personal credits against regular and minimum tax liability; (2) the work opportunity credit; (3) the welfare-to-work credit; (4) the credit for electricity produced from renewable resources; (5) the taxable income limit on percentage depletion for oil and natural gas produced from marginal properties; (6) qualified zone academy bonds; (7) subpart F exemption for active financing; (8) the cover over of tax on distilled spirits; (9) the delay in effective date of requirement for approved diesel or kerosene terminals; (10) the deduction for clean-fuel vehicles and certain refueling property; (11) the credit for qualified electric vehicles; (12) parity in the application of certain limits to mental health benefits; and (13) combined employment tax reporting. Title V: Extension of Additional Provisions Expiring in 2001 - Amends the Trade Act of 1974 to extend duty-free treatment under the Generalized System of Preferences through December 31, 2002. Provides, upon request filed with the Customs Service, for the liquidation or reliquidation (refund of duties) on entries of articles to which duty-free treatment would have applied if such entry had been made on September 30, 2001, and that was made after such date, but before enactment of this Act, and to which duty-free treatment under the Generalized System of Preferences did not apply. (Sec. 502) Extends from December 4, 2001, to June 4, 2002, duty-free treatment extended to beneficiary countries under the Andean Trade Preference Act. (Sec. 503) Amends the Trade Act of 1974 to authorize appropriations to the Department of Labor through calendar year 2002 for: (1) trade adjustment assistance for displaced workers and for firms; and (2) the North American Free Trade Agreement Transitional Adjustment Assistance Program. Title VI: Health Insurance Coverage Options for Recently Unemployed Individuals and Their Families - Requires the establishment of a program, for a limited time, under which 75 percent of the premium for COBRA continuation coverage shall be provided for an individual who: (1) at any time during the period that begins on September 11, 2001, and ends on December 31, 2002, is separated from employment; and (2) is eligible for, and has elected coverage under, COBRA continuation coverage. (Sec. 602) Permits a State may elect to provide, for a limited time, under its Medicaid program (title XIX of the Social Security Act) medical assistance in the case of an individual: (1) who at any time during the period that begins on September 11, 2001, and ends on December 31, 2002, is separated from employment; (2) who is not eligible for COBRA continuation coverage; (3) who is uninsured; and (4) whose assets, resources, and earned or unearned income (or both) do not exceed such limitations (if any) as the State may establish. (Sec. 603) Permits a State to provide, for a limited time, under its Medicaid program medical assistance in the form of payment for the portion of the premium for COBRA continuation coverage for which an individual does not receive a subsidy under the premium assistance program established under section 601 in the case of an individual: (1) who at any time during the period that begins on September 11, 2001, and ends on December 31, 2002, is separated from employment; (2) who is eligible for, and has elected coverage under, COBRA continuation coverage; (3) who is receiving premium assistance under the program established under section 601; and (4) whose family income does not exceed 200 percent of the poverty line. (Sec. 604) Provides for temporary increases in the Medicaid FMAP for FY 2002. Title VII: Temporary Enhanced Unemployment Benefits - Temporary Unemployment Compensation Act of 2001 - Permits any State: (1) to enter into and participate in an agreement under this title with the Secretary of Labor to provide for a program of temporary enhanced unemployment benefits to specified individuals who have otherwise exhausted their unemployment compensation; and (2) upon providing 30 days' written notice to the Secretary, terminate such agreement. (Sec. 703) Requires any agreement under this title to provide that the State will establish, for each eligible individual who files an application for temporary supplemental unemployment compensation, a temporary supplemental unemployment compensation account. (Sec. 704) Sets forth provisions concerning: (1) payments to States having agreements; (2) financing; and (3) fraud and overpayments. (Sec. 708) Limits an agreement entered into under this title to weeks of unemployment: (1) beginning after the date on which such agreement is entered into; and (2) ending before January 1, 2003. Title VIII: Emergency Agriculture Assistance - Subtitle A: Crop Loss Assistance - Directs the Secretary of Agriculture to use $1.8 billion of funds of the Commodity Credit Corporation to make emergency financial assistance available to producers on a farm that have incurred qualifying losses for the 2001 crop. (Sec. 802) Directs the Secretary to use $500 million of the funds of the Commodity Credit Corporation to make and administer payments for livestock losses to producers for 2001 losses in a county that has received an emergency designation by the President or the Secretary after January 1, 2001. (Sec. 803) Directs the Secretary to use $220 million of funds of the Commodity Credit Corporation to purchase agricultural commodities, especially agricultural commodities that have experienced low prices during the 2001 crop year, as determined by the Secretary. Requires at least $55 million of the funds to be used to purchase agricultural commodities under the Richard B. Russell National School Lunch Act for distribution to schools and service institutions. Subtitle B: Rural Development - Directs the Secretary of the Treasury, out of any funds in the Treasury not otherwise appropriated, to transfer to the Secretary of Agriculture: (1) $130,100,000 for the cost of water or waste disposal direct loans under the Consolidated Farm and Rural Development Act; (2) $1,074,798,000 for water or waste disposal grants under such Act; (3) $8,362,000 for the cost of community facility direct loans under such Act; and (4) $60,000,000 for community facility grants under such Act. (Sec. 812) Directs the Secretary of the Treasury, out of any funds in the Treasury not otherwise appropriated, to transfer to the Secretary of Agriculture to make insured cost of money rural telecommunications loans under the Rural Electrification Act of 1936 $40 million. (Sec. 813) Permits additional loans and grants for the broadband pilot program and for telemedicine and distance learning services under the Food, Agriculture, Conservation, and Trade Act of 1990 in an amount not to exceed $400 million. (Sec. 814) Requires, in addition to other available funds, the use of $1.4 billion of funds of the Commodity Credit Corporation to carry out the environmental quality incentives program established under the Food Security Act of 1985. (Sec. 815) Requires, in addition to other available funds, the use of $150 million of funds of the Commodity Credit Corporation to carry out the farmland protection program established under the Federal Agriculture Improvement and Reform Act of 1996. Subtitle C: Administration - Directs the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out subtitle A. (Sec. 822) Directs the Secretary of the Treasury, out of any funds in the Treasury not otherwise appropriated, to transfer to the Secretary of Agriculture to pay the salaries and expenses of the Department of Agriculture in carrying out this title $104.5 million. Title IX: Additional Provisions - Allows a limited nonrefundable credit to holders of qualified Amtrak bonds. Sets annual Amtrak bond limitations. (Sec. 902) Establishes a broadband credit which shall be the sum of: (1) the current generation credit (10 percent of qualified expenditures); plus (2) the next generation broadband credit (20 percent of qualified expenditures). Defines terms. (Sec. 903) Sets forth provisions concerning the tax treatment commercial citrus trees compulsorily or involuntarily converted under which the period within which the converted property must be replaced is expanded and permitting taxpayers to include citrus canker tree replacement payments made by the Secretary of Agriculture as income or gain over a 10-year period. (Sec. 904) Permits filing an electronic 1099S. (Sec. 905) Eliminates the waiver requirement by a farm owner, operator, or tenant in order for an aerial applicator of agricultural fertilizer or other substances to qualify for a gasoline-farming use (excise) tax exemption in the case of an applicator who is the ultimate purchaser of the gasoline so used. Includes within such exemption gasoline used between the airfield and farm. Exempts fixed-wing aircraft used for forestry purposes from the passenger air transportation (excise) tax. (Sec. 906) Provides for a five year recovery period for certain wireless communications equipment. (Sec. 907) States that nothing in this Act shall be construed to alter or amend title II (Old Age, Survivors and Disability Insurance) of the Social Security Act. (Sec. 908) Designates specified amounts as emergency requirements pursuant to provisions of the Balanced Budget and Emergency Deficit Control Act of 1985.

Economic Security and Recovery Act of 2001 - Title I: Business Provisions - Amends the Internal Revenue Code to allow an additional first year 30 percent depreciation allowance for property which has a recovery period of 20 years or less, is water utility property, or computer software and which was acquired after September 10, 2001, and before September 11, 2004, and is placed in service before January 1, 2005. (Sec. 102) Increases, for 2002 and 2003, the section 179 expensing limitation to $35,000. (Sec. 103) Repeals the corporate alternative minimum tax. (Sec. 104) Extends the net operating loss carryback period from two to five years for such losses arising after September 10, 2001, and before September 11, 2004. (Sec. 105) Includes as 15 year property for depreciation purposes any qualified leasehold improvement property. Defines such property as interior improvements, meeting specified conditions, to nonresidential real property. Title II: Individual Provisions - Accelerates the 25 percent individual regular income tax rate to begin in 2002, rather than 2006. (Sec. 202) Reduces, for both the regular and alternative minimum tax, the 10 and 20 percent rates on the adjusted net capital gain to 8 and 18 percent, respectively. (Sec. 203) Increases the amount of capital losses individuals (on a joint return) may use to offset ordinary income from $3,000 to $4,000 for 2001 and to $5,000 for 2002. (Sec. 204) Provides, for individuals receiving unemployment compensation for four consecutive weeks after September 10, 2001, and before January 1, 2003, for penalty-free retirement plan distributions used for health insurance premiums. Title III: Extensions of Certain Expiring Provisions - Subtitle A: Two-Year Extensions - Extends for two years: (1) the allowance of nonrefundable personal credits against an individual's regular and alternative minimum tax liability; (2) the credit for qualified electric vehicles; (3) the credit for electricity produced from renewable sources; (4) the work opportunity credit; (5) the welfare-to-work credit; (6) the phase down of the deduction for clean fuel vehicles and certain refueling property; (7) the taxable income limit on percentage depletion for oil and natural gas produced from marginal wells; (8) the issuance of qualified zone academy bonds; (9) increased coverover payments on distilled spirits to Puerto Rico and the Virgin Islands (10) provisions concerning parity in the application of certain limits to mental health benefits; and (11) the effective date of the diesel and kerosene dyeing mandate. Subtitle B: One-Year Extensions - Extends for one year Archer medical savings accounts. Subtitle C: Permanent Extensions - Extends permanently the subpart F (Controlled Foreign Corporations) exemption for active financing. Subtitle D: Other Provisions - Provides that income from the discharge of indebtedness of an S corporation that is excluded from the S corporation's income is not taken into account as an item of income by any shareholder and therefore does not increase the basis of any shareholder's stock in the corporation. (Sec. 342) Revises provisions concerning the nonaccrual experience method of accounting to make the non-accrual experience method of accounting available only for amounts to be received for the performance of qualified services (health, law, engineering, architecture, accounting, actuarial science, performing arts or consulting) and for services provided by certain small businesses. Title IV: Supplemental Rebate; Other Provisions - Provides for a supplemental rebate for individuals who filed tax returns for 2000. (Sec. 402) Provides for the transfer of specified Federal unemployment account amounts to State unemployment accounts. Title V: Health Care Assistance for the Unemployed - Amends title XX (Block Grants to States for Social Services) of the Social Security Act to increase funding for FY 2002.

Economic Security and Recovery Act of 2001 - Amends the Internal Revenue Code to provide temporary (extensions for one or two years or provisions applicable only to events occurring after September 10, 2001, and before a certain date) and permanent tax relief for both individuals and businesses, including: (1) allowing additional specified depreciation for qualified property; (2) increased expensing; (3) repealing the alternative minimum tax on corporations; (4) extending the net operating loss carry back period; (5) accelerating the 25 percent individual income tax rate effective date; (6) repealing the five year holding requirement for reduced individual capital gains rates; (7) increasing the deduction for capital losses of individual taxpayers; (8) expanding the penalty free withdrawal exception for IRA distributions used for health insurance of unemployed individuals; (9) extending the period during which nonrefundable personal credits are allowed against regular and alternative minimum tax liability; (10) extending the credits for qualified electric vehicles, electricity produced from renewable resources, work opportunity, and welfare-to-work; and (11) provisions concerning the deduction for clean fuel vehicles and certain refueling property, qualified zone academy bonds, parity in the application of certain limits to mental health benefits, Archer medical savings accounts, and the subpart F (Controlled Foreign Corporations) exemption for active financing. Provides for a supplemental rebate. Provides for the transfer of specified Federal unemployment account amounts to State unemployment accounts. Amends title XX (Block Grants to States for Social Services) of the Social Security Act to increase funding for FY 2002.