Home

Senate Focuses on Extending Expired Tax Provisions and Credits - Tax Extenders Bill of 2009

The Senate on March 1 turned to renewing approximately $30 billion worth of expired tax provisions as Senate Finance Committee Chairman Max Baucus, D-Mont., and Senate Majority Leader Harry Reid, D-Nev., offered a substitute amendment to the Tax Extenders Bill of 2009 (HR 4213), which was approved by the House on December 9 (TAXDAY, 2009/12/10, C.1).

The Senate measure would extend a large package of expired tax provisions, including the research and development tax credit, accelerated depreciation for certain small businesses, tax credits for biodiesel and other renewable fuels, pension relief and state and local tax deductions. In addition, the package addresses expired tax provisions directed at home energy savings, education, charitable contributions, environmental concerns and disaster relief.

The cost of the measure is offset by correcting a loophole in a biofuel tax credit that allows for the use of a by-product known as black liquor. The change would raise nearly $24 billion and was included in President Obama's budget plans as a revenue-raiser to help pay for health care reform. Other offsets include clarification of the economic substance doctrine, increased reporting requirements for the homebuyer tax credit and a reduction in the Medicare improvement fund.

"We've taken important steps in recent weeks to strengthen the economy and create new jobs," said Reid. "Now, we build on that work with this bipartisan proposal that will help businesses thrive again, extend critical assistance to out-of-work Americans, extend tax relief to individuals and businesses and provide assistance to states to ensure that they can continue to provide health care to low-income families."

By Jeff Carlson, CCH News Staff

Senate Press Release: Baucus, Reid Introduce Package to Restore Aid for Out-Of-Work Americans, Improve Tax Certainty for Families, Businesses to Bolster Job Creation

Senate Amendment in the Nature of a Substitute to HR 4213: the American Workers, State, and Business Relief Act of 2010