House Passes $275 Billion Tax Stimulus Bill, Senate Vote Nears
An $816 billion economic stimulus package – with $275 billion in tax incentives – passed the House on January 28 by a vote of 244 to 188. The Senate Finance Committee (SFC) marked up its version of the tax title for the stimulus bill on January 27 clearing the way for the full Senate to vote, possibly over the weekend of January 31 and February 1. House and Senate conferees are expected to start work on a conference bill immediately after the Senate acts.
The $275 billion tax title includes a temporary tax break for wage earners, enhancements to the child tax credit, the first-time homebuyer credit, many energy incentives, extensions of 2008 bonus depreciation and increased Code Sec. 179 expensing along with a five-year carryback of net operating losses, state and local government relief, and more. The SFC added an alternative minimum tax (AMT) patch to the tax title, raising the price tag to more than $300 billion.
