The Internal Revenue Service has published a list containing the major changes made by the new law that affect tax years beginning in 2003. A partial description of these major changes is provided below. Go to the IRS web site for the complete description.

Tax Law Changes for Individuals

• 2003 tax rates have been reduced and the 10% tax bracket has been expanded.
  
• The maximum tax rate on capital gains has been reduced to 15% (5% for taxpayers in the lower brackets) for assets sold after May 5, 2003.
  
• Dividends received during 2003 will be taxed at the same 15% and 5% rates applicable to capital gains.
  
• Marriage penalty relief for 2003 (increased standard deduction and expansion of the 15% tax bracket).
  
• The maximum child tax credit has increased from $600 to $1,000 per child for 2003. The increase for 2003 ($400 per child) will be sent to taxpayers during the summer as an advance payment.
  
• The alternative minimum tax exemption amount has been increased for 2003.

• The special first-year depreciation allowance has been increased from 30% to 50% for property purchased after May 5, 2003.The depreciation limit for vehicles subject to the 50% allowance has been increased to $10,710.
  
• The maximum section 179 expensing amount has been increased to $100,000 for 2003.
  
• The installment due date for 25% of any corporate estimated tax payment otherwise due in September 2003 has been changed to October 1, 2003