U.S. Senator Lamar Alexander (R-Tenn.) today said that his vote in favor of a tax relief bill will put more than $400 each in the pockets of nearly 600,000 Tennesseans. The bill also contains tax relief for research and development that will create jobs, as well as groundbreaking new tax credits promoting the use of alternative and renewable energy and encouraging plug-in electric cars and trucks that will reduce America’s demand for foreign oil.
“The state and local sales tax deduction will mean on average $400 in tax relief for nearly 600,000 Tennesseans,” Alexander said. “That’s good news for our state’s economy and for family budgets. While this bill extends the deduction for two years, we still need a permanent fix, and I will continue pushing for legislation to do just that.”
Alexander also noted that the legislation will promote the use of alternative and renewable energy sources and plug-in electric cars.
“This bill takes a step in the right direction by providing incentives for clean energy technology so we can build towards achieving clean energy independence,” Alexander said.
Alexander said the Renewable Energy and Job Creation Act of 2008 (S. 6049) includes measures to:
• Extend the state and local sales tax deduction for two additional years.
• Extend the research and development tax credit for 2 years to encourage job creation.
• Expand eligibility for the Child Tax Credit ($1,000 per child under 17) to more families.
• Encourage the development of alternative energy:
o Extends the Solar Tax Credit for 8 years.
o Provides a $2,500 to $15,000 tax credit for plug-in cars and trucks.
o Encourages the development of cellulosic ethanol, made from crops we don’t eat.
o Encourages energy-efficient appliances and “green buildings.”
• Provides a one-year fix to keep over 20 million Americans from being hit by the Alternative Minimum Tax.
Alexander is a cosponsor of bills introduced by Senators Maria Cantwell (D-Wash.) and Kay Bailey Hutchison (R-Texas) to provide a permanent deduction for state and local sales taxes.
S. 6049 passed the Senate by a vote of 93 to 2.