The Senate Finance Committee recently held a markup hearing to discuss the Family and Business Tax Cut Certainty Act of 2012 which includes more than $205 billion in tax cut extensions for families and businesses. The bill, which passed the Committee by a margin of 19 to 5, would extend the new markets tax credit (NMTC) program for two years, through 2013, permitting up to $3.5 billion in qualified equity investments for each of calendar years 2012 and 2013. The Senate Committee estimates that a two-year extension of the NMTC program would cost about $1.8 billion over ten years.
The bill also extends the Wind Production Tax Credit for one year through 2013 and permits facilities qualifying for the production tax credit to elect to take the investment tax credit in lieu of the production tax credit for facilities that begin construction by the end of 2013. The Committee estimates this proposal to have a net of cost $12.1 billion over ten years.
In addition to approving an extension to the NMTC and wind production tax credit program, the Committee also voted on a number of amendments to the Bill. Amendment No. 14 proposed by Senator Tom Coburn (R-OK), which would have prevented the use of the NMTC with other grant programs and tax incentives, was struck down by the Committee. Amendment No. 20 , proposed by Senators Maria Cantwell (D-WA), Olympia Snowe (R-ME), Jeff Bingaman (D-NM), Ben Cardin (D-MD), John Kerry (D-MA), Debbie Stabenow (D-MI), and Bob Menendez (D-NJ), would freeze the competitive 9% LIHTC credit rate at a minimum 9% rate through 2013 and was approved by a voice vote during the markup hearing. This proposal would extend the expiration date by changing the deadline to a commence construction date or to projects that have received an allocation before December 31, 2013. Based on preliminary estimates, this provision is estimated to cost $8 million over ten years.
The bill should be reported to the full Senate within the next few weeks, and will receive a bill number at that time.
Click here to read the full text of the Family and Business Tax Cut Certainty Act of 2012.
Click here to view a list of all considered amendments to the Family and Business Tax Cut Certainty Act of 2012.
