·         Individual income tax rates: The 2010 rates of 10%, 15%, 25%, 28%, 33% and 35% have been extended for two years, through 2012

·         Itemized deduction and exemption limits: Also effective for the next two years, higher-income taxpayers will get the full value of all their itemized deductions and personal exemptions

·         Child Tax Credit: The $1,000 child tax credit will continue through 2012, and it will also reduce the alternative minimum tax and be partially refundable

·          Other child tax items: The adoption tax credit and dependent care credit will continue through 2012, except that the increased credit amount and refundability of the adoption credit was dropped

·         Marriage penalty relief: The partial relief provided by doubling the 15% bracket for taxpayers filing jointly will continue through 2012

·         American Opportunity Tax Credit: This credit, which modified the Hope Credit, increased the tax credit for eligible education costs to $2,500 per year, is also extended through 2012

·         100% write-off of equipment and machinery purchases: For 2011 only, businesses may expense 100% of the cost of their machinery and equipment purchases

·         Alternative minimum tax patch: The higher exemption amounts will continue through 2011

·         15% Capital gains and dividends rates: The favorable 15% rates will continue through 2012

·         Payroll Tax Holiday: For 2011, there is a reduction in the amount that employees will pay in FICA taxes, from 6.2% to 4.2%, e.g. a worker earning $50,000 in FICA wages will pay $1,000 less in  2011

·         Extenders: Various tax breaks, such as the $250 above the line deduction for educators out of pocket expenses, $4,000 for certain tuition and related higher education expenses, the itemized deduction of state sales taxes, and the tax-free rollovers by individuals 70  ½  and over from IRAs to charitable organizations are continued for 2010 and 2011

·         Federal Estate Tax: The top rate is 35% and estates 5 million and under will pay no tax at all; for those who die in 2010 the executors have the choice of applying the 2010 law or using the 2011-2012 law, which includes stepped-up basis rules

·         Credit for nonbusiness energy property: The credit for homeowners adding qualifying insulation, storm windows and doors continues for 2011, but has been modified so that the maximum credit is $300