Congressman Loebsack Votes for Job Creation, Tax Cuts to Spur Economic Development
Today, Congressman Dave Loebsack (D-IA) voted on several key measures to spur economic development and create jobs. H.R. 4213, the Tax Extenders Act of 2009, is another piece of the Congressman’s ongoing work to create jobs in Iowa. This work includes Congressman Loebsack’s workforce development measures that aim to link job training and education to new and emerging industries. As a member of the Jobs Task Force, Congressman Loebsack has been working with his colleagues on a number of economic development measures.
“This bill includes several key, targeted tax measures that will help individuals, businesses, and farmers,” said Congressman Loebsack. “As I continue to work on measures that will help hardworking Iowans, I will make sure that their voices are heard as we strive to rebuild the economy.”
This bill includes a number of provisions that will help Iowa businesses and families. To strengthen Iowa 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 teachers’ classroom expenses. For Iowa businesses, this bill strengthens investment in alternative fuels, extends tax credits for farmers, and extends research and development tax credits for business.
Below is an outline of some of the provisions in the bill:
• Extension of the State and Local General Taxes Deduction. The bill would extend for one year (through 2010) the election to take an itemized deduction for State and local general sales taxes in lieu of the itemized deduction permitted for State and local income taxes.
• Extension of the Deductions for College Tuition. The bill would extend for one year (through 2010) the above-the-line tax deduction for qualified education expenses.
• Extension of the Deduction for Classroom Expenses for Teachers. The bill would extend for one year (through 2010) the $250 above-the-line tax deduction for teachers and other school professionals for expenses paid or incurred for books, supplies (other than non-athletic supplies for courses of instruction in health or physical education), computer equipment (including related software and service), other equipment, and supplementary materials used by the educator in the classroom.
• Extension of the Research and Development Credit for Business. The bill would extend for one year (through 2010) the research credit.
• Extension of Depreciation for Farming Business Machinery and Equipment. The bill would extend for one year (through 2010) the provision that provides a five-year recovery period for certain machinery and equipment which is used in a farming business.
• Extension of Tax Incentives for Biodiesel and Renewable Diesel. The bill would extend for one year (through 2010) the $1.00 per gallon production tax credit for biodiesel and the small agri-biodiesel producer credit of 10 cents per gallon. The bill would also extend for one year (through 2010) the $1.00 per gallon production tax credit for diesel fuel created from biomass.
• Extension of Tax Incentives for Natural Gas and Propane used as a Fuel in Transportation Vehicles. The bill would extend for one year (through 2010) the $0.50 per gallon production tax credit for natural gas and propane used as a transportation fuel.
• Extension of Employer Wage Credit for Activated Military Reservists. The bill would extend for one year (through 2010) the provision that provides eligible small business employers with a credit against the taxpayer’s income tax liability for a taxable year in an amount equal to twenty percent (20%) of the sum of differential wage payments to activated military reservists.