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Senate Committee Reaches Deal On Tax Credits Before Recess

Bill unlikely to pass the House

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Many businesses in the D.C. region are keeping an eye on a piece of legislation to extend tax credits but the bill may get trapped in partisan wrangling. 

Businesses need certainty and this Congress has failed to provide any such thing. But before leaving D.C. for the month of August, the Senate Finance Committee was able to muster a bipartisan compromise to extend a broad array of tax credits that help everyone from students to business owners. 

The bill is vital for the region, says Sen. Ben Cardin (D-Md.), who is on the committee and voted for the measure.

"We have the energy credits which are very important. We have some energy projects that are being held up because for all intents and purposes the energy credits have already expired," Cardin says. "We have the transit benefit which is very important for federal workers and government workers. The predictability on the college credits, work opportunity tax credits. All those are important." 

The bill is moving through the Senate, but it s unlikely to pass the hyper-partisan U.S. House. Cardin hopes leaders in the two chambers can start a dialogue now that the legislation has picked up broad support in the Senate. 

"What we are trying to do is start momentum by getting some action," he says. "We think if we can get the Senate Finance Committee to act, that could present some momentum on the issue."

A House bill to address similar tax issues failed to garner even a single Democratic vote. 


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