LINE ITEM VETO ACT OF 1996

REFERENCES AND BACKGROUND

Acronym: LIVA

Bill Reference: S-4

Law Reference: P.L. 104-130

Date of Enactment : April 9, 1996

TAX PROVISIONS

In General: The new law gives the president the authority to veto
some provisions within a tax bill.

Items Subject To Veto: The line-item veto in the new law does not
apply to all tax proposals, but only to those that provide a
"limited tax benefit.". Limited tax benefits can be of two
types. The first type is generally a revenue-losing provision
that provides a federal tax deduction, credit, exclusion, or
preference to 100 or fewer beneficiaries in any fiscal year for
which the provision is in effect. The second type is generally
any federal tax provision offering temporary or permanent
transitional relief for 10 or fewer beneficiaries in any fiscal
year.

Effective Date: January 1, 1997.