(Washington, D.C.) – This week, the U.S. Senate began consideration of the American Jobs and Closing Tax Loopholes Act a bill that contains critical support for Washington state’s families, businesses, infrastructure, and economy.
bill provides timely and needed support for Washington state’s economy and
families,” said Senator Murray. “It
incentivizes businesses to grow, provides Medicaid assistance to help avoid
another budget crisis, and gives Washington taxpayers the fairness they
deserve. While our economy may not be getting worse, we still have a lot of
work to do to ensure it gets better. This bill keeps our focus on boosting
local economies, creating jobs, and keeping our economic recovery going.”
that will help Washington state’s families and economy include:
TAX CUTS FOR WASHINGTON STATE FAMILIES:
- Deduction of state and local sales taxes for Washington residents –The bill will allow Washington residents to continue to deduct state and local taxes on their federal tax returns. The sales tax deduction is meant to ensure that Washington taxpayers are treated fairly as other taxpayers from other states. The provision also provides certainty to Washington families so that they can plan their financial future. The deduction saves Washington taxpayers over $500 million each year.
- Classroom expense deduction for Washington state teachers – The bill will provide teachers with a federal tax deduction for out-of-pocket expenses for instructional materials and classroom supplies.
- College tuition deduction - The bill will increase the amount Washington students and their families can deduct for tuition and education expenses from their taxes.
TAX CUTS AND SUPPORT FOR WASHINGTON STATE BUSINESSES:
- Tax Cut for Hiring Washington State Military Reservists – The bill extends a tax cut for Washington state small businesses that continue to pay employees who have been called to active duty, so these businesses can continue to support these jobs.
- Research and Development Tax Credit for Innovative Washington Businesses - The bill extends a tax cut for research and development to help Washington state businesses spur innovation and grow.
- Biodiesel and Renewable Tax Credits for Washington state Producers – The bill extends a tax cut for Washington state’s biodiesel and renewable diesel produce, which will support energy independence and create jobs.
- Tax Credit for Equipment Investments – The legislation allows Washington state companies to receive tax refunds on a portion of their Alternative Minimum Tax (AMT) credits if they invest in capital equipment for use in the United States.
Tax Benefits for Capital Investmentsby Washington Businesses – The legislation extends tax cuts for Washington businesses that will encourage construction and improvements - supporting construction jobs, encouraging economic development and saving these businesses money they can use to reinvest in their companies and hire new workers.
- Small Business Administration Loans - The
bill would extend the small business lending program that eliminates the fees
normally charged for loans through the SBA 7(a) and 504 loan programs and
increases the government guarantees on 7(a) loans from 75% to 90%. Since
its creation, the program has supported over $26 billion in small business
lending nationwide, which has helped to create or retain over 650,000 jobs.
Tax Cut for Investing in Low-Income Washington Communities – The bill extends the New Markets Tax Credit, a tax cut for private investment in low-income Washington state communities, bolstering local economies and creating jobs where they are needed the most.
Senator Murray worked to include a provision in the bill that will continue the successful summer jobs program she included in the American Recovery and Reinvestment Act for the upcoming summer. The provision is expected to support over 300,000 jobs for youth ages 16 to 24 in the most difficult job markets young people have faced in the last 50 years. Funding for the program will allow local Workforce Investment Boards in Washington state to continue a program that created 5,000 work opportunities for young people across Washington state last summer.
MEDICAID ASSISTANCE FOR WASHINGTON STATE:
The bill includes an extension of federal medical assistance percentage (FMAP) support for Washington state which will help the state afford the rising cost of providing Medicaid that has come with increased enrollment, rising unemployment, and lower tax receipts. This funding would help avoid a special session of the state legislature in which tax increases and across the board cuts to jobs, health care, and our economic recovery would have to be considered.
The bill includes an extension of federal unemployment insurance to assist the over 260,000 Washington state residents currently receiving unemployment, or those who will apply in the future, through November 2010. Many Washington residents continue to struggle to find work after losing their jobs, through no fault of their own during the economic recession.