Thursday, December 10, 2009

House Passes Tax Extenders Bill


The House passed a bill Wednesday that would extend for one year more than $31 billion in tax breaks. Among the 45 deductions and credits for businesses and individuals, which are set to expire at year's end:

A sales tax deduction that mainly benefits people who live in the nine states without a state income tax. The states are Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Tennessee, Washington and Wyoming. Cost: $1.8 billion.

An additional standard deduction for state and local property taxes for taxpayers who don't itemize their deductions. Cost: $1.5 billion.

A deduction of up to $4,000 for college tuition and related expenses. Cost: $1.5 billion.

A deduction of up to $250 for teachers who spend their own money for books and other classroom supplies. Cost: $228 million.

A credit that helps businesses finance research and development. Cost: $7 billion.

Accelerated depreciation for improvements made to leased restaurant and retail property. Cost: $5.4 billion.

Additional depreciation allowance for businesses that suffer damage from a federally-declared disaster. Cost: $1.4 billion.

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