Health and Welfare Provisions in the American Taxpayer Relief Act of 2012

On January 1, 2013, Congress passed the American Taxpayer Relief Act (the ?Ç£Act?Ç¥) to avert the so-called ?Ç£fiscal cliff?Ç¥ of automatic tax increases and spending cuts that became effective on that date. The Act contains several health and welfare related provisions, including the following: Transportation Expenses: The Act retroactively reinstates a higher pre-tax allowance for qualified employer-provided transit benefits for 2012 and extends it through December 31, 2013.?á The higher pre-tax allowance was part of the American Recovery and Reinvestment Act of 2009, which increased the monthly limit for employer-provided transit benefits to equal the limit for qualified parking benefits until the end of 2011. Permanent Extensions of EGTRRA Educational Assistance, Adoption Assistance and Dependent Care Tax Benefits: The Act permanently extends certain provisions that were subject to the sunset provision under the Economic Growth and Tax Relief Reconciliation Act of 2001 (?Ç£EGTRRA?Ç¥), including income exclusions for employer-provided educational and adoption assistance benefits, and provisions relating to dependent care tax benefits. Repeal of the Class Act: The Act repeals the Community Living Assistance Services and Supports Act, which was created under the PPACA, and establishes a Commission on Long-Term Care to develop a plan for the establishment, implementation, and financing of a comprehensive, coordinated, and high-quality system that ensures the availability of long-term services and supports for affected individuals. The American Taxpayer Relief Act of 2012 can be found?áhere.