On December 9th, the House passed the American Workers, State, and Business Relief Act (HR 4213) - another piece of our plan to create jobs and strengthen the American economy, strongly supported by the Obama Administration.
For American business, the bill extends the research and experimentation (R&D) tax credit for another year, encouraging businesses to increase investments in technology and create more high-tech jobs for the twenty-first century. It will also strengthen investment in alternative fuels, the ability of U.S. companies to serve customers in foreign markets, and extend benefits for investment in economically distressed areas. These provisions will create American jobs, and foster growth, innovation and opportunity needed to spur on an American recovery.
To strengthen American families' pocketbooks and inject demand into the economy, the bill extends the deductibility of state and local sales taxes and property tax relief, as well as the college tuition deduction and the deduction for classroom expenses.
To make sure this bill is fiscally sound and does not increase the deficit, the measure provides the IRS with significant new tools to crack down on investors evading taxes by hiding assets offshore and ends the special preferential tax treatment for hedge fund and investment bank managers.
Creating American Jobs & Cutting Taxes for Millions of Middle-Class Families (approximately $31 billion -- $5 billion for individuals, $17 billion for business, $3.4 billion for strengthening communities)
- Strengthens job creation by American businesses here at home and U.S. competitiveness by extending the R&D tax credit for nearly 11,000 corporations and the special rules for active financing income.
- Approximately 70% or more of the benefits of the R&D tax credit are attributable to salaries of workers performing U.S. based research and the credit stimulates American made innovation in all 50 states.
- Provides up to 30 million homeowners with property tax relief;
- Benefits 12 million families through the State and local sales tax deduction;
- Helps 4.5 million families better afford college with the tuition deduction;
- Saves 3.4 million teachers money with a deduction for classroom expenses;
- Take steps to make sure that activated military reservists do not suffer a pay cut by providing a tax credit for small businesses that continue to pay their National Guard and Reserve employees when they are called up to serve.
- More than 550,000 Reserve and National Guard members that have been deployed to Iraq and Afghanistan since September 2001 and 55 percent of married Guard members and reservists suffer a loss of income when being called to active duty.
- Help businesses and individuals to invest in and succeed in certain economically depressed areas with the extension of tax incentives for Empowerment Zones and Renewal Communities, as well as the new markets tax credit.
- Provides substantial assistance for the real estate sector, by (1) providing more than $5 billion to encourage improvements to retail stores, construction of restaurants and making certain other improvements to real property; and (2) extending the low-income housing tax credit exchange program which has invested more than $3.7 billion in the construction of more than 49,000 low-income housing units; and (3) providing nearly $3 billion to encourage economic development in economically distressed communities.
- Strengthens American-made energy with tax incentives for the production of biodiesel and renewable diesel.