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Senate Approves Tax Extenders Bill

The Senate on March 10 approved by a 62 to 36 margin legislation (The American Workers, State and Business Relief Act, HR 4213) that would extend through 2010 approximately $30 billion worth of expired tax provisions and increased unemployment and COBRA benefits. The measure now heads to the House, where House Ways and Means Chairman Sander M. Levin, D-Mich. said he may call for a conference to resolve differences between the two chambers' bills. The House passed an extenders bill on Dec. 9, 2009 (TAXDAY, 2009/12/10, C.1).

HR 4213 retroactively extends a large package of middle class and business tax breaks that expired at the end of 2009, including the research and development tax credit, expanded business depreciation, college tuition and energy efficiency tax credits. Lawmakers also approved pension relief for small businesses hit hard by the recession. Senate Democratic leaders called renewal of the extenders package essential to their plan to help stabilize the economy and promote job growth. "Extending these tax cuts creates the stability and certainty that our economy needs to create jobs," said Senate Finance Committee Chairman Max Baucus, D-Mont. For more details and up-to-date analysis of the Senate's Extenders Bill read the award-winning CCH Tax Briefing at Senate Extenders Bill

The bill also extends for six months certain provisions of the America Recovery and Reinvestment Act (2009 Recovery Act) (P.L. 111-5), and the current rate of Medicare payments to doctors who were otherwise facing a 21 percent rate cut. The measure is partially offset by prohibiting the paper and pulp fuel mixture known as black liquor from qualifying for the alternative fuel credit, codification of the economic substance doctrine, and limitations on the homebuyer's tax credit.

By Jeff Carlson, CCH News Staff

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Joint Committee on Taxation Report --Estimated Revenue Effects Of The Revenue Provisions Contained In The "American Workers, State And Business Relief Act Of 2010," As Passed By The Senate On March 10, 2010 JCX-9-10

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