American Jobs Creation Act (Jobs Act, AJCA)

President Bush signed H.R. 4520, the American Jobs Creation Act of 2004, thereby making October 22, 2004, the enactment and effective date for many of the provisions in the Act.

KPMG has created an Executive Summary titled, The American Jobs Creation Act of 2004 - Assessing New Tax Benefits, Costs, and Risks for U.S. Businesses, which provides a high-level overview of the Act, including the key provisions to which management and board members of U.S. companies should be particularly attuned.

Of note, section 965 of the Internal Revenue Code, added by the American Jobs Creation Act of 2004, offers U.S. multinational corporations an unprecedented, one-time, one-year opportunity to repatriate low-taxed foreign earnings at an incremental U.S. tax cost as low as 5.25 percent.

A series of three articles by KPMG professionals that provide a detailed summary and analysis of section 965 and the related IRS and Department of Treasury guidance have appeared in Tax Executive, the professional journal of Tax Executives Institute, Inc.

• The first article, covering section 965 and Notice 2005-Notice 2005-10, was published in the January-February 2005 issue of Tax Executive.
• A second article, which appeared in the May-June issue of Tax Executive, covers Notice 2005-38 guidance on section 965.
• A third article, which covers Notice 2005-64 guidance, appeared in the September-October 2005 issue of Tax Executive.

Additional materials include:

• Current Power & Utility Topics, Spring 2005, Issue 4, "2004 Tax Law Provides New Deduction for Electricity Production and Other Incentives for the Utility Industry
• November 8, 2005 - Webcast (1HR) - Proposed Regulations under Section 199 archived event>. Senior-level professionals from KPMG's Washington National Tax practice discussed the proposed regulations under Internal Revenue Code section 199, enacted as part of the American Jobs Creation Act of 2004.
• July 14, 2005 - Webcast (1 HR) - Overview on the Jobs Act for Financial Executives archived event>. KPMG and Financial Executives International hosted this event on the Jobs Act of 2004, which offers a high-level overview, including some of the provisions, which financial executives of U.S. companies should review more closely.