Tax Legislation 2006: Law and Explanation of the Tax Relief and Reconciliation Acts of 2005

After months of debate in Congress, a comprehensive package of tax extenders (and more) finally received approval in the waning moments of the 2006 Lame Duck session. The Tax Relief and Health Care Act of 2006 (H.R. 6111) was passed by the House on December 8, 2006, and by the Senate on December 9, 2006.  The new law retroactively restores many popular expired tax cuts to the start of 2006 and enhances some important tax incentives. It bolsters Health Savings Accounts, revises deadlines for certain excise taxes, extends some expiring energy credits, makes critical technical corrections to existing tax laws, and includes an impressive list of miscellaneous tax relief. Much earlier in the year, on May 17, 2006, the Tax Increase Prevention and Reconciliation Act of 2005 (P.