sunset provision

sunset provision definition - business

sunset provision

A clause in a law that automatically repeals the law on a specific date. For example, legislation passed in 2001 scheduled a phaseout of the federal estate tax over 10 years. The legislation also included a sunset provision that reinstated the tax to its original level in 2011.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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