Representatives passed, 378-46, and sent to the Senate a retroactive revival of five dozen tax breaks that expired on Jan 1, including a handful that apply to the agriculture sector. The incentives would expire again at the end of this month, if the Senate approves the bill. Chairman Dave Camp, Michigan Republican, of the House Ways and Means Committee lamented that a broad-scale tax reform had proved impossible. “It makes no sense to have a bill like this in the last 28 days of the year. This place is dysfunctional,” said Jim McDermott, Washington state Democrat.
Among provisions in the bill are a $500,000 business expensing deduction for new equipment, extension of a 50 percent bonus depreciation for property, continuation of the $1-a-gallon biodiesel tax credit and revival of the wind power production tax credit.
“Democratic tax-writers in the Senate are continuing to push for their preferred two-year extensions of the tax breaks,” said The Hill newspaper. “But both the White House and House Democrats have essentially said that the one-year deal is better than the broader agreement being sought last week.”
The House also passed and sent to the Senate, on a 404-17 rollcall, a bill with a rider that raises the barge fuel tax to 29 cents.
“A tax break that is credited with producing renewable energy and jobs in Iowa is being targeted by conservative groups calling for its elimination,” said the Quad City Times, published in Davenport, Iowa, in a story about the wind power credit.