The American Jobs Creation Act of 2004 was a federal tax act

Taxation in the United States

The United States is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees.Taxes are imposed on net income of...

 composed of numerous tax credits for agricultural and business institutions. Included was the repeal of some excise taxes on fuel and alcohol, and the creation of tax credits for biofuels. The bill was introduced by Representative Bill Thomas on June 4, 2004, passed the House

United States House of Representatives

The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...

 June 17, the Senate

United States Senate

The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...

 on July 15, and was signed by President George W. Bush

George W. Bush

George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....

 on October 22.

Initially the bill was designed to repeal the export tax incentive (ETI), which had been declared illegal by the World Trade Organization

World Trade Organization

The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...

 numerous times and sparked retaliatory tariff

Tariff

A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....

s by the European Union

European Union

The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

.

Summary of provisions

The Office of Tax Analysis of the United States Department of the Treasury

United States Department of the Treasury

The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...

 summarized the tax changes as follows:

• created deduction for income from U.S. production activities
• repealed exclusion for extraterritorial income
• changed interest expense allocation rules

A report by the Tax Policy Center

Tax Policy Center

The Tax Policy Center is a non-partisan joint venture of the Urban Institute and the Brookings Institution. Based in Washington D.C., it aims to provide independent analyses of current and longer-term tax issues and to communicate its analyses to the public and to policymakers in a timely and...

identifies the following main provisions and their costs over a period of 10 years:

• repeal of the ETI over a 3 year period including transitional relief; expected to produce $49 billion in revenue
• U.S. production tax breaks of 9% of income from domestic production, with an expected cost of $77 billion
• assorted business tax relief provisions costing $7 billion
• international tax changes for a cost of $43 billion
• miscellaneous revenue generating provisions with a projected gain of $82 billion
• temporarily allowed taxpayer deduction of state and local sales taxes