U.S. Senator Debbie Stabenow today praised the work of the Senate Finance Committee after passage of bipartisan legislation she helped shape. The bill will cut taxes for middle-class families and businesses who are investing in job creation. The Family and Business Tax Cut Certainty Act of 2012 passed out of the Senate Finance Committee today with a strong bipartisan vote of 19-5. It sets the stage for more comprehensive tax reform later this year. Senator Stabenow, a member of the Finance Committee, authored a number of provisions in the bill to cut taxes for families and businesses who are creating jobs in Michigan.
"This bill is about putting more money back in the pockets of middle-class families and providing certainty for our businesses as they keep growing and creating jobs," said Senator Stabenow. "Michigan is leading the country in clean energy innovation and manufacturing, and this bill will continue supporting those cutting-edge businesses. Congress needs to create the right environment to help companies continue to make things in America, because when we make things and grow things here, we create jobs here."
The legislation also includes Senator Stabenow's Mortgage Forgiveness Tax Relief Act, which extends a law she authored in 2007 that prevents homeowners from being hit by a tax when their mortgage lender forgives part of their mortgage.
Senator Stabenow said, "It is outrageous that families who are struggling and underwater on their mortgages could be hit with an additional tax liability if they have their loan modified to stay in their homes. This bill will stop that from happening so these families can stay in their homes without fear of an additional tax bill from the IRS."
Senator Stabenow, Co-Chair of the bipartisan Senate Manufacturing Caucus, has long been a leader on cutting taxes for manufacturers. The Family and Business Tax Cut Certainty Act of 2012 reflects Senator Stabenow's leadership on a number of key Michigan priorities:
Mortgage Debt Relief
The bill extends Senator Stabenow's Mortgage Debt Relief Act of 2007 that has prevented mortgage forgiveness from being treated as income by the IRS.
Deduction for Teachers Expenses
The bill extends the $250 deduction for teachers and other school professionals who use personal funds to pay for books, supplies, computer equipment, and other supplies needed for the classroom.
Research and Development Tax Deduction
The bill extends the R&D tax credit for two years so that businesses can continue to invest in future innovation and job creation.
Employer Tax Credit for Activated Military Reservists
The bill extends for two years the provision that gives eligible small businesses a tax credit equal to 20 percent of the differential wage payments to activated military reservists.
Returning Heroes and Wounded Warriors Work Opportunity Tax Credits
The bill extends the Work Opportunity Tax Credits that provide credits of up to $9,600 for companies that hire qualified veterans.
Wind Energy Production Tax Credit
The bill extends the wind energy production tax credit for one year. It also expands the tax credit so that companies can qualify for the credit if they have begun construction of a wind production facility before the end of 2013.
Energy Efficiency Tax Credit
The bill extends the credit for energy-efficiency upgrades to existing homes. This credit is extended through 2013.
Alternative Vehicle Fueling Tax Credit
The bill extends through 2013 the 30 percent investment tax credit for alternative vehicle refueling stations.
Cellulosic Biofuel Production Tax Credit
Facilities producing the next-generation of advanced cellulosic biofuels can receive a $1.01 per gallon tax credit on fuel produced before the end of this year. The bill extends this provision through 2013.
Credit for Energy Efficient Appliances
The bill extends through 2013 a tax credit for U.S.-based manufacturers of energy-efficient washers, dishwashers, and refrigerators.
Biodiesel Tax Credit
The bill extends the biodiesel tax credit for two years, through 2013 and also extends the tax credit for fuel made from biomass through 2013.
For more information, visit www.finance.senate.gov