February 3, 2006

The Senate on February 2 approved a substitute amendment to the House tax reconciliation bill, the Tax Relief Extension Reconciliation Act of 2005 (HR 4297), paving the way to begin a conference on the $70 billion package of tax relief. The final vote was 66 to 31.

The new provisions included in the substitute amendment extend for two years the following expiring provisions:

(1) Election to deduct state and local general sales taxes;

(2) Allowance of nonrefundable personal credits against regular and alternative minimum tax liability;

(3) Extension and modification of research credit;

(4) Work Opportunity Tax credit and Welfare-to-Work credit;

(5) Qualified zone academy bonds;

(6) Deduction for corporate donations of computer technology and equipment;

(7) Above-the-line deduction for certain expenses of elementary and secondary school teachers;

(8) Expensing of Brownfields remediation costs;

(9) Indian employment tax credit;

(10) Accelerated depreciation for business property on Indian reservation;

(11) Fifteen-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant improvements; and

(12) Extension of full credit for qualified electric vehicles;