Baucus Introduces Tax Extenders Bill

by Mike Godfrey, Tax-News.com, Washington

17 June 2008

Senate Finance Committee Chairman Max Baucus (D-Mont.) last week formally introduced the Energy Independence and Tax Relief Act of 2008, which will extend certain business and personal tax breaks beyond their current expiry dates.

Baucus announced on 12th June that he intends to offer this legislation as a substitute bill to the Renewable Energy and Job Creation Act of 2008 (H.R. 6049), which was passed by the House of Representatives on 21st May, when the Senate proceeds to that legislation.

The Baucus bill provides tax relief for working families and businesses by extending tax incentives that expired at the end of 2007 or are set to expire at the end of 2008, such as the college tuition deduction, state and local sales tax deductions and business tax credits for research and technology innovation.

The legislation would also encourage the production of renewable fuels, such as wind and solar energy, biofuels and carbon sequestration technologies, and includes provisions to improve transportation and domestic fuel security, and energy and conservation efficiency.

“It’s time to get this done for the working families and businesses that depend on these tax cuts and incentives like providing relief on college tuition or protecting middle-income working families from the AMT. Continued support from all sectors of the business community keep me hopeful that my Senate colleagues will weigh the importance of this bill for our nation’s energy future and the millions of working American families and businesses that depend on these provisions,” Baucus commented.

“Fiscally responsible, reasonable offsets and protection from the AMT for families are the right choice for America, and particularly good reasons why Senators should support this bill at the next opportunity," he added.

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