President Obama and the GOP yesterday brokered a deal that seeks to give clarity to taxpayers for 2011 and 2012. The deal also provides several new (or enhanced) tax provisions designed to stimulate the economy. Below is a snapshot of the parameters, which may be subject to alteration as the legislation is finalized and moved to a vote: 

• Extension of Bush era individual tax rates for 2011 and 2012
• Extension of Bush era capital gains and qualified dividends for 2011 and 2012
• Repeal of the itemized deductions phase out for high income taxpayers for 2011 and 2012
• Repeal of the personal exemptions phase out for high income taxpayers for 2011 and 2012
• Marriage penalty relief for 2011 and 2012
• Extension of the $1,000 Child Tax Credit for 2011 and 2012 (previously scheduled to revert to $500 after 2010)
• Provision of higher Alternative Minimum Tax (AMT) exemption amounts for 2010 and 2011
• Reduction of Social Security tax (OASDI) for wage earners from 6.2% to 4.2%
• 100% bonus depreciation on qualifying purchases made in 2011
• Extension of Research Tax Credit for 2010 and 1011

Additionally, the agreement sets forth a reenacted estate tax with a $5 million per person exclusion amount ($10 million per married couple) and maximum tax rate of 35% for 2011 and 2012. The repeal of the estate tax for 2010 remains, and there appears to be no momentum for a retroactive reinstatement.

We will keep you posted as further details become available.