Sen. Max Baucus (D-MT) has introduced the Middle Class Tax Cut Act of 2010. The legislation contains extensions of numerous affordable housing, new markets and renewable energy tax credit and bond programs. Among other things, the proposed bill:

  • Extends the Build America Bonds Program for one year through 2011;
  • Extends ARRA’s alternative minimum tax relief provisions for private activity bonds for one year through 2011;
  • Makes an additional allocation of Recovery Zone bonds and extends authorization for issuing Recovery Zone bonds through 2011 for investment in infrastructure, job training, education and economic development;
  • Extends for two years through 2011 the direct payment in lieu of low-income housing tax credit program (Exchange Program);
  • Extends tax-exempt eligibility for loans guaranteed by Federal Home Loan Banks for one year through 2011;
  • Provides an additional $2.5 billion in funding for the Section 48C advanced energy manufacturing tax credit;
  • Codifies and extends the payment in lieu of tax credit program created by Section 1603 of ARRA for one year through 2011;
  • Extends for two years through 2011 the New Markets Tax Credit program and allows NMTCs to be claimed against the AMT with respect to qualified investments made between March 15, 2010 and January 1, 2013;
  • Extends through 2011 the expensing “brownfields” remediation costs;
  • Extends for one year the increased rehabilitation credit for historic structures in the Gulf Opportunity Zone (GO Zone);
  • Extends for two years through 2012 the placed-in-service date for GO Zone low-income housing tax credit developments; and
  • Allows disaster credits to be exchanged for either grants or refundable tax credits.

A detailed summary of the Baucus legislation is provided on the Novogradac & Company website. Click here to view the summary.