Kersten Communications

 The California Institute for Federal Policy Research (CIFPR) reports that House and Senate negotiators on May 20, 2010 reached a compromise on the conference agreement to H.R. 4213, the American Jobs and Closing Tax Loopholes Act.  The original legislation, the Tax Extenders Act of 2009, passed the House of Representatives on December 9, 2009.  The Senate passed a similar package, the American Workers, State and Business Relief Act, as an amendment to that bill on March 10, 2010, according to CIFPR.

The House hopes to garner sufficient support for the measure from moderate Democrats to allow it to pass the bill early next week. The Senate will need to find at least one Republican supporter to reach the 60 votes it will need to overcome a filibuster. Leaders of both bodies hope to secure final passage of the bill before the beginning of the Memorial Day recess, which begins on May 28, 2010, according to CIFPR.

Below is a CIFPR summary of the numerous provisions contained in the bill, the cost of which could total in the neighborhood of $200 billion, are the following:

        - extend eligibility for unemployment insurance benefits and COBRA health care tax credits through December 31, 2010;

        - extend the American Recovery and Reinvestment Act small business lending program that eliminates the fees normally charged for loans through the SBA 7(a) and 504 loan programs and increases the government guarantees on 7(a) loans from 75% to 90%;

        - extend the Build America Bonds (BABs) program for two years (through 2012);

        - exclude bonds financing facilities that furnish water and sewage facilities from state volume caps;

        - extend for one year (through 2010) the expensing of costs associated with cleaning up hazardous “brownfield” sites;

        - distribute the Projects of National and Regional Significance (PNRS) and National Corridor Infrastructure Improvement (National Corridor) surface transportation program funding among all States based on each State’s share of FY 2009 highway apportioned funds rather than to only 29 States and Washington, D.C., that had PNRS and National Corridor projects under SAFETEA-LU; the bill would also distribute “additional” highway formula funds (which the bill makes available in lieu of additional Congressionally-designated projects) among all of the highway formula programs rather than among just six formula programs;

        - reinstate for one year (through 2010) the research and development tax credit;

        - extend for one year (through 2010) the designation of certain economically depressed census tracts as Empowerment Zones;

        - support over 300,000 jobs for youth ages 14 to 24 through summer employment programs;

        - expand the Trade Adjustment Assistance for Communities – Community College and Career Training Grant Program to include individuals who are eligible for unemployment insurance, or are likely to be eligible for unemployment insurance, or have exhausted their unemployment insurance;

        - extend for one year (through 2010) the election to take an itemized deduction for State and local general sales taxes in lieu of the itemized deduction permitted for State and local income taxes;

        - extend for one year (through 2010) the above-the-line tax deduction for qualified education expenses;

        - extend for one year (through 2010) the $250 above-the-line tax deduction for teachers and other school professionals for expenses paid for books, supplies, and other supplementary materials;

        - extend for one year (through 2010) the $1.00 per gallon production tax credit for biodiesel and the small agri-biodiesel producer credit of 10 cents per gallon, and also extend for one year (through 2010) the $1.00 per gallon production tax credit for diesel fuel created from biomass;

        - extend for one year (through 2010) the provision that allows film and television producers to expense the first $15 million of production costs incurred in the United States ($20 million if the costs are incurred in economically depressed areas in the United States);

        - prevent 20 percent reduction in Medicare physician payment rates in June and allow rates to increase in 2012 and 2013 if spending growth on physician services is within reasonable limits, with an extra allowance for primary and preventive care; and

        - provide a 6-month extension of the temporary 6.2 percent increase in Federal Medicaid Matching Rate (FMAP), as well as the additional percentage points for states with high unemployment.

        Detailed information on the bill can be found at:

http://waysandmeans.house.gov/press/PRArticle.aspx?NewsID=11185 .