Top Congressional tax negotiators Sen. Chuck Grassley (R-Iowa) and Rep. Bill Thomas (R-Calif.) have reached an understanding aimed at breaking the logjam on tax legislation. At the same time, Congress is struggling to conclude the session in the first or second week of October.
Under the evolving plan, a separate tax bill on family tax credits would be acted on next week. This group of tax credits is an election-year priority for the Bush Administration. The bill would:
– Maintain the child tax credit at the maximum level of $1,000 through 2009;
– Maintain relief from the "marriage tax penalty" through 2008;
– Maintain the current upper limit on the 10% income tax bracket through 2007; and
– Maintain current exemptions from the Alternative Minimum Tax through 2006.
All of these provisions are now set to expire on December 31.
The Corporate Tax/JOBS (Jumpstart Our Business Strength) bill (H.R. 4520) containing the wind energy production tax credit (PTC) and many other energy tax credits would be acted on after the family tax credit bill. For over a week, Sen. Grassley had insisted on linking action on the two tax bills.
At a noon meeting held on September 17 attended by AWEA, Republican and Democratic staff on the Senate Finance (tax) Committee told a group of assembled lobbyists that the Corporate Tax/JOBS bill remains the only avenue for gaining energy tax items at this time.
Still unclear is whether enough time remains for Congress to complete action on either or both of the two tax bills. Also unknown is whether Republican Congressional leaders will choose to return after the November 2 election for a special "lame duck" session, which would allow more time to act on tax legislation.
As of September 17, the House of Representatives had not yet appointed its conferees on the final Corporate Tax/JOBS bill.
Loading...