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The Line Item Veto Act amended the Congressional Budget and Impoundment Act of 1974 to grant the President the limited authority to cancel specific dollar amounts of discretionary budget authority, certain new direct spending, and limited tax benefits. The Line Item Veto Act provides that the Joint Committee on taxation is required to examine any revenue or reconciliation bill or joint resolution that amends the Internal Revenue Code of 1986 prior to its filing by a conference committee in order to determine whether or not the bill or joint resolution contains any limited tax benefits and to provide a statement to the conference committee that either (1) identifies each limited tax benefit contained in the bill or resolution, or (2) states that the bill or resolution contains no limited tax benefits. The conferees determine whether or not to include the Joint Committee=s statement in the conference report. If the conference report includes the information from the Joint Committee on taxation identifying provisions that are limited tax benefits, then the President may cancel one or more of those, but only those, provisions that have been identified. If such a conference report contains a statement from the Joint Committee on taxation that none of the provisions in the conference report are limited tax benefits, then the President has no authority to cancel any of the specific tax provisions, because there are no tax provisions that are eligible for cancellation under the Line Item Veto Act.
The conference report contains a list of provisions that have been identified by the Joint Committee on taxation as limited tax benefits within the meaning of the Line Item Veto Act. These provisions are listed below
(1) Sec. 101(c) (relating to high risk pools permitted to cover dependents of high risk individuals)
(2) Sec. 222 (relating to limitation on qualified 501(c)(3) bonds other than hospital bonds)
(3) Sec. 224 (relating to contributions of computer technology and equipment for elementary or secondary school purposes)
(4) Sec. 312(a) (relating to treatment of remainder interests for purposes of provision relating to gain from sale of principal residence)
(5) Sec. 501(b) (relating to indexing of alternative valuation of certain farm, etc., real property)
(6) Sec. 504 (relating to extension of treatment of certain rents under section 2032A to lineal descendants)
(7) Sec. 505 (relating to clarification of judicial review of eligibility for extension of time for payment of estate tax)
(9) Sec. 511 (relating to expansion of exception from generation-skipping transfer tax for transfers to individuals with deceased parents)
(10) Sec. 601 (relating to the research tax credit)
(11) Sec. 602 (relating to contributions of stock to private foundations)
(12) Sec. 603 (relating to the work opportunity tax credit)
(13) Sec. 604 (relating to orphan drug tax credit)
(14) Sec. 701 (relating to incentives for revitalization of the District of Columbia) to the extent it amends the Internal Revenue Code of 1986 to create sections 1400 and 1400A (relating to tax-exempt economic development bonds)
(15) Sec. 701 (relating to incentives for revitalization of the District of Columbia) to the extent it amends the Internal Revenue Code of 1986 to create section 1400C (relating to first-time homebuyer credit for District of Columbia)
(16) Sec. 801 (relating to incentives for employing long-term family assistance recipients)
(17) Sec. 904(b) (relating to uniform rate of tax on vaccines) as it relates to any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens
(18) Sec. 904(b) (relating to uniform rate of tax on vaccines) as it relates to any vaccine against measles
(19) Sec. 904(b) (relating to uniform rate of tax on vaccines) as it relates to any vaccine against mumps
(20) Sec. 904(b) (relating to uniform rate of tax on vaccines) as it relates to any vaccine against rubella
(21) Sec. 905 (relating to operators of multiple retail gasoline outlets treated as wholesale distributors for refund purposes)
(22) Sec. 906 (relating to exemption of electric and other clean-fuel motor vehicles from luxury automobile classification)
(23) Sec. 907(a) (relating to rate of tax on liquified natural gas determined on basis of BTU equivalency with gasoline)
(24) Sec. 907(b) (relating to rate of tax on methanol from natural gas determined on basis of BTU equivalency with gasoline)
(25) Sec. 908 (relating to modification of tax treatment of hard cider)
(26) Sec. 914 (relating to mortgage financing for residences located in disaster areas)
(27) Sec. 962 (relating to assignment of workmen=s compensation liability eligible for exclusion relating to personal injury liability assignments)
(28) Sec. 963 (relating to tax-exempt status for certain State worker=s compensation act companies)
(29) Sec. 967 (relating to additional advance refunding of certain Virgin Island bonds)
(30) Sec. 968 (relating to nonrecognition of gain on sale of stock to certain farmers= cooperatives)
(31) Sec. 971 (relating to exemption of the incremental cost of a clean fuel vehicle from the limits on depreciation for vehicles)
(32) Sec. 974 (relating to clarification of treatment of certain receivables purchased by cooperative hospital service organizations)
(33) Sec. 975 (relating to deduction in computing adjusted gross income for expenses in connection with service performed by certain officials) with respect to taxable years beginning before 1991
(34) Sec. 977 (relating to elective carryback of existing carryovers of National Railroad Passenger Corporation)
(35) Sec. 1005(b)(2)(B) (relating to transition rule for instruments described in a ruling request submitted to the Internal Revenue Service on or before June 8, 1997)
(36) Sec. 1005(b)(2)(C) (relating to transition rule for instruments described on or before June 8, 1997, in a public announcement or in a filing with the Securities and Exchange Commission) as it relates to a public announcement
(37) Sec. 1005(b)(2)(C) (relating to transition rule for instruments described on or before June 8, 1997, in a public announcement or in a filing with the Securities and Exchange Commission) as it relates to a filing with the Securities and Exchange Commission
(38) Sec. 1011(d)(2)(B) (relating to transition rule for distributions made pursuant to the terms of a tender offer outstanding on May 3, 1995)
(39) Sec. 1011(d)(3) (relating to transition rule for distributions made pursuant to the terms of a tender offer outstanding on September 13, 1995)
(40) Sec. 1012(d)(3)(B) (relating to transition rule for distributions pursuant to an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 described in a ruling request submitted to the Internal Revenue Service on or before April 16, 1997)
(41) Sec. 1012(d)(3)(C) (relating to transition rule for distributions pursuant to an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 described in a public announcement or filing with the Securities and Exchange Commission) as it relates to a public announcement
(42) Sec. 1012(d)(3)(C) (relating to transition rule for distributions pursuant to an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 described in a public announcement or filing with the Securities and Exchange Commission) as it relates to a filing with the Securities and Exchange Commission
(43) Sec. 1013(d)(2)(B) (relating to transition rule for distributions or acquisitions after June 8, 1997, described in a ruling request submitted to the Internal Revenue Service submitted on or before June 8, 1997)
(44) Sec. 1013(d)(2)(C) (relating to transition rule for distributions or acquisitions after June 8, 1997, described in a public announcement or filing with the Securities and Exchange Commission on or before June 8, 1997) as it relates to a public announcement
(45) Sec. 1013(d)(2)(C) (relating to transition rule for distributions or acquisitions after June 8, 1997, described in a public announcement or filing with the Securities and Exchange Commission on or before June 8, 1997) as it relates to a filing with the Securities and Exchange Commission
(46) Sec. 1014(f)(2)(B) (relating to transition rule for any transaction after June 8, 1997, if such transaction is described in a ruling request submitted to the Internal Revenue Service on or before June 8, 1997)
(47) Sec. 1014(f)(2)(C) (relating to transition rule for any transaction after June 8, 1997, if such transaction is described in a public announcement or filing with the Securities and Exchange Commission on or before June 8, 1997) as it relates to a public announcement
(48) Sec. 1014(f)(2)(C) (relating to transition rule for any transaction after June 8, 1997, if such transaction is described in a public announcement or filing with the Securities and Exchange Commission on or before June 8, 1997) as it relates to a filing with the Securities and Exchange Commission
(49) Sec. 1042(b) (relating to special rules for provision terminating certain exceptions from rules relating to exempt organizations which provide commercial-type insurance)
(50) Sec. 1081(a) (relating to termination of suspense accounts for family corporations required to use accrual accounting) as it relates to the repeal of Internal Revenue Code section 447(i)(3)
(51) Sec. 1089(b)(3) (relating to reformations)
(52) Sec. 1089(b)(5)(B)(i) (relating to persons under a mental disability)
(53) Sec.1171 (relating to treatment of computer software as FSC export property)
(54) Sec. 1175 (relating to exemption for active financing income)
(55) Sec. 1204 (relating to travel expenses of Federal employees doing criminal investigations)
(56) Sec. 1236 (relating to extension of time for filing a request for administrative adjustment)
(57) Sec. 1243 (relating to special rules for administrative adjustment request with respect to bad debts or worthless securities)
(58) Sec. 1251 (relating to clarification on limitation on maximum number of shareholders)
(59) Sec. 1253 (relating to attribution rules applicable to tenant ownership)
(60) Sec. 1256 relating to modification of earnings and profits rules for determining whether REIT has earnings and profits from non-REIT years)
(61) Sec. 1257 (relating to treatment of foreclosure property)
(62) Sec. 1261 (relating to shared appreciation mortgages)
(63) Sec. 1302 (relating to clarification of waiver of certain rights of recovery)
(64) Sec. 1303 (relating to transitional rule under section 2056A)
(65) Sec. 1304 (relating to treatment for estate tax purposes of short-term obligations held by nonresident alien)
(66) Sec. 1311 (relating to clarification of treatment of survivor annuities under qualified terminable interest rules)
(67) Sec. 1312 (relating to treatment of qualified domestic trust rules of forms of ownership which are not trusts)
(68) Sec. 1313 (relating to opportunity to correct failures under section 2032A)
(69) Sec. 1414 (relating to fermented material from any brewery may be received at a distilled spirits plant)
(70) Sec. 1417 (relating to use of additional ameliorating material in certain wines)
(71) Sec. 1418 (relating to domestically produced beer may be withdrawn free of tax for use of foreign embassies, legations, etc.)
(72) Sec. 1421 (relating to transfer to brewery of beer imported in bulk without payment of tax)
(73) Sec. 1422 (relating to transfer to bonded wine cellars of wine imported in bulk without payment of tax)
(74) Sec. 1506 (relating to clarification of certain rules relating to employee stock ownership plans of S corporations)
(75) Sec. 1507 (relating to modification of 10 percent tax for nondeductible contributions)
(76) Sec. 1523 (relating to repeal of application of unrelated business income tax to ESOPs)
(77) Sec. 1530 (relating to gratuitous transfers for the benefit of employees)
(78) Sec. 1532 (relating to special rules relating to church plans)
(79) Sec. 1604(c)(2) (relating to amendment related to Omnibus Budget Reconciliation Act of 1993)