Investopedia

Continue to Site »

Sunset Provision

Filed Under »
Dictionary Says

Definition of 'Sunset Provision'

A clause in a statute, regulation or similar piece of legislation that provides for an automatic repeal of the entire or sections of a law once a specific date is reached. Once the sunset provision date is reached, the pieces of legislation mentioned in the clause are rendered void. If the government wishes to extend the length of time for which the law in question will be in effect, it can push back the sunset provision date any time before it is reached.
Investopedia Says

Investopedia explains 'Sunset Provision'

The purpose of a sunset provision is generally to allow lawmakers to institute a law when change or government action is required reasonably quickly, when the long-term ramifications of the law in question are difficult or impossible to foresee, or when circumstances warrant such a legal structure.

A good example of legislation warranting a sunset provision is the U.S.A. Patriot Act. Intended to address relatively short-term security concerns following the events of September 11, 2001, the act, when it was initially drafted, included a sunset provision for December 31, 2005.

Articles Of Interest

  1.

    Tax-Efficient Wealth Transfer

    Taxpayers with large taxable estates were required to take steps to reduce them before 2011.

  2. Dividend Tax Rates: What Investors Need To Know

    Find out how legislation enacted in 2003 is benefiting both investors and corporations, and when it's scheduled to expire.

  3. Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.

  4. Changes In Tax Legislation And Regulation

    Keeping on top of these amendments can help you avoid penalties and take advantage of benefits.

  5. Pension Protection Act Of 2006 Becomes Law

    Learn how the passed bill can help you save more for retirement.

  6. Do You Dare Sue Your Broker?

    A financial damages claim is not for the fainthearted, but it may be worth it in the end.

  7. What To Do When You're Left Out Of A Will

    Discover the legal steps you can take if you are left out of a will and if fighting is worth the effort.

  8. Fighting Back Against Collection Lawsuits

    There are still options available to those being pursued by a creditor.

  9. 5 Free Or Low-Cost Legal Services

    Legal fees have never been more expensive. Here are some ways for you to save on legal fees while still getting reliable advice.

  10. How quickly should my financial advisor sell a stock that I have asked him or her to sell for me?

    Financial advisors and planners have fiduciary responsibilities to their investors. They owe their investors a high degree of loyalty as they are in positions of trust and confidence. Execution ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center