House Extends Bipartisan Tax Relief to Families and Businesses

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House Extends Bipartisan Tax Relief to Families and Businesses

Bill would keep millions of families from paying higher taxes, extend expiring tax benefits

WASHINGTON – The House of Representatives today passed legislation to extend vital tax relief to millions of families, strengthen investment opportunities for American businesses and encourage the production and use of renewable energy, by a strong bipartisan vote of 263-160. The legislation, H.R. 6049, the Renewable Energy and Job Creation Act of 2008, was introduced by Committee Chairman Charles B. Rangel (D-NY), who delivered the following remarks during debate on the House Floor:

“We now have an opportunity to reverse the trend of dangerous addiction to foreign oil and the lack of political will to do something to beat that addiction. Under the leadership of Speaker Pelosi, we have taken the initiative to pass legislation that will enhance our ability to promote our energy independence through the use of renewable sources and create green-collar jobs for American workers.

“The possibilities of this legislation are virtually endless when you think of the variety of sources we can use to produce renewable energy. This bill presents a great opportunity to explore new areas and develop new technologies.

“This legislation will also extend vital tax relief to American families and businesses whose tax bill would increase at the end of the year if we did not act. Tax relief provided in this bill include the research and development credit to help American businesses remain competitive, as well as deductions for State and local sales tax, real property tax for non-itemizers, tuition expenses, and out-of-pocket expenses for teachers. This bill would also expand the refundable child tax credit to help more than 13 million children and their families. Especially during tough economic times, there are millions of families who rely on these deductions for their economic security and this bill delivers the tax relief they deserve.”

H.R. 6049 would provide important tax relief for to millions of families, including:

  • Deduction of State and local sales tax
  • Deduction of tuition and other education expenses
  • Deduction of out-of-pocket expenses by teachers
  • Deduction of property taxes for non-itemizers
  • Relief for more than 13 million children through an expansion of the refundable child tax credit to taxpayers earning $8,500 a year.

H.R. 6049 will also provide critical tax incentives for businesses to invest in new technology by:

  • Extending the research and development credit and active financing provisions.

Chairman Rangel’s legislation would also help reduce America’s dependence on foreign oil by encouraging the use and production of renewable energy through:

  • Six-year extension of the investment tax credit (ITC) for solar energy
  • Three-year extensions of the production tax credit (PTC) for energy derived from biomass, geothermal, hydropower, landfill gas and solid waste
  • One-year extension of the PTC for energy derived from wind
  • Tax incentives for carbon capture and sequestration demonstration projects.
  • Incentives for the production of renewable fuels such as biodiesel and renewable diesel
  • Incentives to encourage energy efficient products, such as plug-in hybrids cars, and incentives for energy conservation in both commercial buildings and residential structures
  • Tax credit bonds providing State and local government with funds to make energy conservation investments in public infrastructure and invest in research

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