Introduced by Rep. Tauscher

• The Tax Relief And Health Care Act of 2006, H.R.6111, was introduced Sept. 19, 2006, by its sole sponsor, Rep. Ellen Tauscher, a California Democrat. It was referred to the House Ways and Means Committee, then passed on a voice vote in the House on Dec. 5. Then it unanimously passed the Senate on Dec. 6.
  
  

Various Tax Breaks Extended

• The law extended various tax breaks through 2007, such as the tuition tax deduction, state and local sales tax deduction, school teacher expense deduction, Indian employment tax credit, tax incentives for District of Columbia investment, mental health benefit parity under group health plans, corporate donations of computer technology and scientific property used for research, plus authority for some undercover IRS investigations.
  
  It also extended various energy tax credits through 2008, including those for electricity from some renewable resources, clean renewable energy bonds, energy efficient commercial buildings, new energy efficient homes and special methanol and ethanol excise tax rates.
  
  

Health Savings Account Modified

• The new law allowed a one-time transfer (before Jan. 1, 2012) from a "flexible spending" health care account to a health savings account. It also classified those distributions as gross income for people who don't maintain their high-deductible health plan coverage and imposed a 10 percent penalty on them.
  
  It changed the maximum health savings account contribution to a set amount (instead of tying it to a person's health plan deductible), up to $2,850 for self-only coverage and $5,650 for family coverage in 2007. The amounts also were indexed for inflation.
  
  The law allowed people to make a full year's contribution to their health savings accounts, instead of one pro-rated based upon the number of months eligible.
  
  

Assorted Other Provisions Included

• The new law contained other energy-related provisions such as opening oil and natural gas leasing of 8.3 million acres in the Gulf of Mexico on the Outer Continental Shelf and changing the "abandoned mine land program."
  
  It also contained other tax-related provisions such as expanding a tax deduction for income from domestic production to production done in Puerto Rico in 2006 and 2007.
  
  However it also put limitations on imported cigarettes, continued scholarships for Washington, D.C. families and authorized a study of a national elder abuse database.