Congress has passed a bill which President Obama signed into law today that will extend the expiring Bush tax rates and a host of other expired or expiring provisions.

In addition to extending the Bush tax rates through the end of 2012, the measure covers the following:

  • Retains the 15% capital gains rate
  • Two point self-employment tax reduction (for both employer and employee portions of tax)
  • Reinstates the estate tax and the stepped-up basis rules
  • Expands the estate tax exclusion to $5 million
  • Lower estate tax rates (Maximum 35%)
  •  15-year recovery periods for leasehold improvements
  • Enhanced expensing for some assets
  • Energy tax credits
  • Alternative Minimum Tax relief