• Extension and modification of the research and development credit - The bill extends the tax credit to the end of 2009 (for amounts paid or incurred after December 31, 2007). Additionally, the bill increases the alternative simplified credit from 12% to 14% for the 2009 tax year, and terminates the alternative incremental research credit for the 2009 tax year.

• Extension of the 'New Markets Tax Credit' - Current law provides a credit for taxpayers who hold a qualified equity investment (made after December 31, 2008); this credit was intended to support investors to provide loans or invest in small businesses in distressed areas. The bill extends the credit through December 31, 2009.
  

• Extension of 15 year depreciation recovery provision in the American Jobs Creation Act - The bill extends the provision (to the end of 2009) for recovery of certain restaurant property and leasehold improvements from 39 to 15 years. Additionally, the bill allows for a 15 year depreciation recovery period for retail and new restaurants; the shortened recovery period will be for 2009 only. This allowance is effective for property placed in service after December 31, 2008.

• Extension of tax breaks for contributions of food to charitable organizations (and books and computer equipment to schools) - The bill extends these provisions through December 31, 2009.

• Extension of provision of the Pension Protection Act of 2006 - This provision provides, with respect to charitable contributions of S-corporation shareholders, that the shareholder's reduced basis in the S-corporation will be equal to the pro rata share of the adjusted basis of the property contributed. This provision is extended through December 31, 2009.

For the full text of the "Bailout Bill", click here.