WASHINGTON - The House Committee on Ways and Means today passed bipartisan 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. The legislation, H.R. 6049, the Energy and Tax Extenders Act of 2008, was introduced by Committee Chairman Charles B. Rangel (D-NY) and could be considered by the full House of Representatives as early as next week. H.R. 6049 passed the Committee by a vote of 25-12.
“This bill would provide critical tax relief to help working families cope with the rising cost of living," said Chairman Rangel. “Furthermore, this bill would extend vital tax incentives for American businesses to help them invest in new technologies and remain competitive internationally."
“The legislation would also make an important investment in renewable energy and energy conservation to reduce our dependency on foreign oil," continued Chairman Rangel. “This is a strong, timely, and fiscally responsible tax relief package."
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 12 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:
* A 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
* A one-year extension of the PTC for energy derived from wind
* Tax incentives for coal electricity plants that capture and sequester carbon dioxide.
* Incentives for the production of renewable fuels such as biodiesel and renewable diesel and cellulosic biofuels
* 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
