U.S. Representative Tom Allen, a senior member of the House Budget Committee, today urged swift House passage of legislation to provide $46 billion in tax breaks for families and small businesses in Maine and across America. H.R. 7060, the Renewable Energy and Job Creation Tax Act, provides $3 billion of additional tax relief for individuals through an expansion of the refundable child tax credit. It extends $27 billion in expiring temporary tax provisions, including the research and development credit, the State and local sales tax deduction and the deduction for qualified tuition expenses. It also creates approximately $16 billion of new tax incentives to encourage investment in renewable energy, carbon capture and sequestration demonstration projects, energy efficiency and conservation.
"Soaring prices for energy, health care and other basic necessities have made it increasingly difficult for middle income families to get ahead and for small businesses to grow and create new jobs," Representative Allen said. "This bill combines tax relief and tax incentives that will put more money in the pockets of families, provide relief for small businesses and encourage research and development that will create good jobs and help move America toward energy independence. I proposed many of this bill's provisions in my legislation, the Small Business Investment and Promotion Act."
To ensure that these tax breaks do not add to the nation's growing debt, the bill offsets the lost revenue through a number of provisions, including closing tax loopholes that give unfair breaks to oil companies operating overseas and corporate executives abusing offshore tax havens.
"The middle class and small business tax relief in this bill is a major step forward, but we must do even more," Representative Allen said. "I will continue to work with others in Congress to pass three bills I have introduced to reduce the tax burden even further. The families and small businesses on Main Street, the people who work hard and play by the rules, are the engine that powers our economy. They deserve leadership that puts them first for a change."
Representative Allen has introduced the Middle Class Opportunity Act to double the tax credit for the first year of a child's life and expand the dependent care tax credit to include care for ailing parents or grandparents who do not reside with the taxpayer. It also combines three existing education tax incentives into one simple, easy-to-understand Education Tax Credit of up to $2,500 and per student and provides relief from the alternative minimum tax for two years to give Congress time to correct the problem permanently.
To provide families with immediate relief from soaring costs to heat their homes, Representative Allen has introduced The Home Heating Fuels Cost Relief Act, legislation to provide a $2,000 refundable tax credit families can use to offset their fuel costs this winter.
Representative Allen first introduced the Small Business Fuel Cost Relief Act after Hurricane Katrina and again in the 110th Congress. It would allow businesses to claim a tax credit on the amount they spend on fuel in excess of the price on Labor Day 2004, adjusted for inflation. It also raises the IRS Standard Mileage Rate to 60 cents for business owners who use their vehicles for business purposes.