Washington – U.S. Senator Blanche Lincoln today sent a letter to Senate Majority Leader Harry Reid and Speaker of the House of Representatives Nancy Pelosi urging both to make the completion of Senate-House negotiations on a critical package of tax cuts and other job-creation measures the first legislative priority following the current state and district work period.
“In our continuing efforts to restore the nation’s economy and create jobs, there is no step more important than providing a stable economic environment for our businesses,” Lincoln wrote. “Without predictability in the tax code, our businesses lack the certainty needed to plan for the future, make capital investments and hire workers. In my home state of Arkansas, the lapse in the biodiesel tax credit has resulted in biodiesel production nearly ceasing for the entire first quarter of this year. Without a doubt, this unpredictability in the tax code has caused similar disruptions across the country and across the various sectors of the economy impacted by the tax provisions in this bill.”
The Senate passed the American Workers, State and Business Relief Act on March 10, and the legislation now has to be reconciled with the House version of the bill before it can be signed into law. In the meantime, American families and businesses are forced to continue waiting for the extension of numerous federal tax provisions that expired in 2009, as well as assistance for unemployed Americans, fiscal relief for states to protect their Medicaid program and increased Medicare payments for doctors. This uncertainty is stalling infrastructure investments, research and development activity, capital improvements and other economic activity that is critical to improving the overall health of the nation’s economy.
The Senate-passed version of the bill contains Lincoln’s $1.5 billion disaster assistance package for farmers and ranchers who incurred significant agricultural losses last year. It also includes Lincoln’s energy-efficient appliances production tax credit to allow U.S. producers of high-ENERGY efficient appliances to enjoy the same tax credit already available to other renewable energy producers. In Arkansas, the provision would directly support Whirlpool’s refrigeration facility in Fort Smith, for example. The facility employs 1,800 people.
“Congress must act quickly to retroactively renew the important provisions that have already expired and to provide emergency relief, whether to farmers who have faced tremendous losses due to natural disasters, to families struggling with the loss of a job and their health insurance, or to states struggling to preserve the critical services they provide in Medicaid as part of our nation’s health safety net. After meeting with many concerned Arkansans during the state work period, I cannot emphasize enough the urgency with which this legislation should be enacted.”
Key provisions in the Senate-passed American Workers, State and Business Relief Act to benefit Arkansas include:
Lincoln’s $1.5 billion agriculture disaster assistance package that will provide the relief producers need to stay in business, also saving jobs in Arkansas.
Lincoln’s energy-efficient appliances production tax credit to allow U.S. producers of high-ENERGY efficient appliances to enjoy the same tax credit already available to other renewable energy producers. In Arkansas, the provision would directly support Whirlpool’s refrigeration facility in Fort Smith, for example. The facility employs 1,800 people.
The Biodiesel Tax Credit: The bill extends for one year tax credits already in place to incentivize biodiesel fuel production. By making the production of biodiesel fuels less expensive, producers are able to hire more workers and pass savings onto consumers. According to one Arkansas producer, Bernie Crowley, Jr., the owner and general manager of Delta American Fuel in Helena-West Helena, the credit’s extension will allow him to save jobs and hire 30-35 additional people.
New Market Tax Credit: The bill extends this credit that provides capital to spur economic development in low income areas.
Short Line Maintenance Tax Credit: The bill extends for one year the tax credit that provides short line and regional railroads with a 50 percent tax credit for expenditures related to maintaining railroad tracks they own or lease.
Timber Provision: The bill includes a provision to ensure that all businesses and individuals that sell timber are taxed at the capital gains rate, which is lower than the current rate for some.
Empowerment Zones: The bill extends for one year the designation of certain economically-depressed census tracts as Empowerment Zones, which entitles them to certain tax incentives to jumpstart development.
Exchange of Low-Income Housing Tax Credits: A Lincoln-secured provision would allow states to exchange a portion of the Low-Income Housing Tax Credits they received due to damage from natural disasters. Rather than holding onto tax credits that are not being used, this provision would allow states to exchange a portion of these “disaster credits” for 85 cents on the dollar. With this funding stream, states would be able to jumpstart stalled affordable housing projects that would have otherwise remained stagnant.
