Baucus introduces tax bill extending key tax provisions

Late on Sept. 16, Senate Finance Committee Chair Max Baucus introduced the Job Creation and Tax Cuts Act of 2010, legislation to “create jobs” and extend critical tax provisions for individuals, families and employers.

Among other provisions, the bill would extend for one year (i.e., through 2010): the research credit; the special 15-year cost recovery period for certain leasehold improvements, restaurant buildings and improvements, and retail improvements; the five-year recovery period for certain machinery and equipment which is used in a farming business; and the new markets tax credit.  The bill also would allow corporation to receive a refund of a portion of their AMT credits if they invest during 2010 in capital equipment for use in the U.S.

Earlier Baucus efforts included a crackdown on using certain S corporations as a way to minimize Medicare and Social Security taxes. The latest Baucus bill drops this controversial proposal.

This is a work in progress and that other changes may well be made to it before it comes up for a vote.

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