Summary and Background
Senate Democrats are committed to promoting American jobs, energy, and families with targeted tax relief and incentives. Similar to legislation previously introduced by Senator Baucus (S.3125), the Jobs, Energy, Families and Disaster Relief Act of 2008 (S. 3335), would protect millions of American taxpayers from getting hit by the alternative minimum tax and provide brand-new incentives for alternative energy, business tax relief to help companies innovate and create jobs, and critical tax relief for families and college students. Specifically, S. 3335 would:
- Create renewable energy incentives by providing almost $20 billion of tax incentives for investment in renewable energy related to energy production, transportation and domestic fuel security, and energy conservation and efficiency;
- Extend expiring temporary tax provisions for individuals and businesses, including the research and development credit, special rules for active financing income, the state and local sales tax deduction, the deduction for out-of-pocket expenses for teachers, and the deduction for qualified tuition expenses; and
- Provide additional tax relief for individuals and businesses,; extend the Secure Rural Schools program;provide immediate relief to victims of floods and other natural disasters; and replenish the Highway Trust Fund to enable vital infrastructure repairs and more job creation.
The bill would be primarily offset by closing a tax loophole that allows individuals who work for certain offshore corporations, such as hedge fund managers, to defer tax on their compensation, would delay the effective date of a tax benefit that has not yet taken effect for multinational corporations operating overseas, and basis reporting by brokers on stock sales.
The Senate is expected to consider this legislation the week of July 28, 2008.
Energy Tax Incentives
Energy Production Incentives
S. 3335 would provide renewable energy incentives, including: