DPC REPORTS
FACT SHEET | June 10, 2008
Bush Republicans Block Tax Cuts for America's Families and Businesses
Senate Democrats are committed to making the American Dream affordable again for middle-class families struggling with the rising cost of living, including gas prices that are at an all-time high, and a shrinking job market The Renewable Energy and Jobs Creation Act of 2008 (H.R. 6049) proposes tax incentives for the development of alternative energy solutions and important tax cuts for America's working families with real savings on college tuition, state and local sales taxes, and business investments for individuals and companies alike. In addition, the Senate substitute to the bill prepared by Chairman Baucus that was due for consideration in the Senate today would have provided critical relief for over 21 million American middle-class families who will be subject to the alternative minimum tax this year unless Republicans allow the Senate to act to protect these families
Given the chance to vote on this legislation, however, Bush Republicans voted no. By obstructing progress on this bill, Senate Republicans and their leadership, including Senator McCain, continue to back President Bush's failed economic policies of the last seven years that have led to the squeeze on our hard-working families and have driven up the price of gas by 177 percent.
This Fact Sheet provides a sample of the national and state-by-state benefits that Senate Republicans blocked today.
To help hard-working Americans cope with skyrocketing costs and decreasing incomes,theRenewable Energy and Jobs Creation Act of 2008 would have extended billions of dollarsin tax cuts for millions of individuals and families, including the:
- Tuition Deduction ($2.56 billion). To mitigate the impact of rising tuition costs on students and their families and to provide an incentive for individuals to pursue higher education, H.R. 6049 would extend the above-the-line tax deduction for qualified education expenses. Over 4.4 million families take this deduction, which totaled $10.7 billion in 2005. This $4,000 deduction gives the average family a tax cut of $1,120. The deduction is reduced to $2,000 for couples filing jointly with incomes between $130,000 and $160,000.
State-by-state benefits are available here.
- State and Local General Sales Tax Deduction ($1.7 billion). To continue to provide similar federal tax treatment to residents of states that rely on sales taxes rather than income taxes to fund state and local governmental functions, H.R. 6049 would extend the option of deducting state and local sales taxes in lieu of deducting state and local income taxes. Over 11.1 million families take this deduction, which totaled $17.5 billion in 2005. This deduction provides equity for taxpayers in states that have no state income tax: Arkansas, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.
State-by-state benefits are available here.
- Teacher Expense Deduction ($204 million). Over 3.4 million families take this deduction, which totaled $850 million in 2005. This $250 deduction provides tax relief to teachers who buy school supplies for their classrooms.
State-by-state benefits are available here.
- Child Tax Credit ($3.1 billion). The child tax credit provides tax relief for millions of families. This legislation would increase the credit for families who lose a part of the credit due to inflation.
State-by-state benefits are available here.
To help maintain and create jobs and help to keep America competitive in the global economy, theRenewable Energy and Jobs Creation Act of 2008 would have extended billions of dollars in tax cuts forU.S. businesses, including extension of the:
- Research and Development Credit ($8.8 billion).For tax year 2008, 27,265 businesses would use this credit. The following states have the most companies that benefited from the R&D credit: California, Florida, Illinois, Massachusetts, Minnesota, New York, Ohio, Pennsylvania, Texas and Wisconsin. Based on 2001 data, the following sectors would enjoy the greatest benefit from the credit: Computer and electronics manufacturing, chemical manufacturing, information services, computer systems design and related services, and scientific R&D services. The Senate substitute proposes to increase the R&D credit's Alternative Incremental Credit.
State-by-state benefits are available here.
-
New Markets Tax Credit($1.3 billion). Since its inception, the U.S. Department of the Treasury has made 294 awards of new market tax credits (NMTC) totaling $16 billion. To encourage investment in economically underdeveloped areas throughout the country, this creditpermits taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated Community Development Entities. In 2007, the Treasury allocated $3.9 billion in NMTC, and in 2008, the Treasury will allocate $3.5 billion in NMTC. Following are the top ten states that benefited from NMTC, in order of the number of dollars invested: California, New York, Ohio, Maine, Wisconsin, Missouri, Massachusetts, Kentucky, North Carolina and Washington.
-
15-year Straight-line Cost Recovery for Qualified Leasehold Improvements and Qualified Restaurant Improvements ($5.4 billion). Many restaurants and leased real properties are owned by partnerships. In recognition of the fact that leaseholds and restaurants have shorter lives than industrial and commercial structures in general, H.R. 6049would extend the special 15-year cost recovery period for qualified leasehold and restaurant improvements. Absent an extension of this provision, the cost recovery period for these facilities would be 39 years. The data for accelerated recovery for leasehold and restaurant improvements is not specifically listed in IRS data. However, approximately 2.8 million partnerships filed tax returns in 2005. These partnerships took $71 billion in deductions for depreciation. In 2005, 63,939 partnerships in the food services and drinking places sector filed tax returns. These partnerships took $1.77 billion in depreciation.
To promote investments in green technologies that would generate manufacturing, construction and installation jobs and to protect against fossil fuel supply disruptions and price fluctuations, theRenewable Energy and Jobs Creation Act of 2008 wouldhaveextended and expanded renewable and energy efficiency tax credits, including:
-
Renewable Production Tax Credit.Expiration of federal renewable energy tax credits could lead to the loss of about 76,000 jobs in the wind industry. H.R. 6049 includes an extension of the wind power credit, as well as a longer-term extension of the credit for renewable electricity produced from other sources, including biomass and geothermal. (Navigant Consulting, Inc., 2/2008)
- Solar Energy. The U.S. solar industry employs 20,000 Americans. This number is projected to triple with a long-term extension of the solar tax credit. The Navigant Consulting study estimates that 40,000 solar jobs will be lost without extension of the solar credit. H.R. 6049 would implement a six-year extension of the solar credit for businesses and individuals. The Senate substitute proposes to extend this credit for eight years.
•Plug-in Electric Drive Vehicle Credit. Toencourage further investments in advanced technology vehicles,H.R. 6049 would establish a new credit for each qualified plug-in electric drive vehicle placed in service during each taxable year by a taxpayer. The base amount of the credit is $3,000.
-
Biofuels. In 2007 alone, U.S. biodiesel production displaced an estimated 20 million barrels of petroleum. H.R. 6049 would implement a one-year extension of the biodiesel credit.
-
Efficiency. In the United States, buildings are responsible for 38 percent of CO2 emissions, 40 percent of energy use, and 70 percent of electricity use. H.R. 6049 includes a five-year extension of the credit for energy-efficient commercial buildings, and a one-year extension of the credit for improving efficiency of existing homes.
- Clean Energy Bonds. Clean Renewable Energy Bonds (CREBs) were enacted in the Energy Policy Act of 2005 to give non-taxable entities federal incentives for clean-energy projects. The CREBs program spurred over 700 new wind, biomass, solar, and hydro projects, and more funding is needed to advance new projects and H.R. 6049 includes $2 billion in new CREB allocations.
State-by-state benefits are available here.
State by State Benefits of the Renewable Energy and Jobs Creation Act:
Tuition and Fees Deduction
|
|
# of Families |
Deductions ($ millions) |
|
United States |
4,475,610 |
10,736 |
|
Alabama |
51,315 |
126.3 |
|
Alaska |
14,185 |
26.5 |
|
Arizona |
88,024 |
163.8 |
|
Arkansas |
23,978 |
52.9 |
|
California |
571,515 |
1083.6 |
|
Colorado |
65,939 |
174.9 |
|
Connecticut |
87,023 |
207.1 |
|
Delaware |
14,384 |
35.4 |
|
D.C. |
10,638 |
29 |
|
Florida |
204,624 |
434.3 |
|
Georgia |
122,152 |
295.1 |
|
Hawaii |
18,745 |
42.5 |
|
Idaho |
22,283 |
43.5 |
|
Illinois |
226,131 |
557.3 |
|
Indiana |
85,755 |
213.6 |
|
Iowa |
47,704 |
113.7 |
|
Kansas |
47,946 |
100.4 |
|
Kentucky |
42,646 |
105.4 |
|
Louisiana |
47,007 |
108.1 |
|
Maine |
16,026 |
40.4 |
|
Maryland |
115,412 |
281.8 |
|
Massachusetts |
121,063 |
317.9 |
|
Michigan |
170,851 |
417.5 |
|
Minnesota |
104,500 |
271.1 |
|
Mississippi |
25,226 |
57.4 |
|
Missouri |
81,712 |
189.3 |
|
Montana |
13,639 |
33.1 |
|
Nebraska |
30,080 |
62 |
|
Nevada |
32,624 |
58.4 |
|
New Hampshire |
22,221 |
60.7 |
|
New Jersey |
166,941 |
444.8 |
|
New Mexico |
28,868 |
47.8 |
|
New York |
326,557 |
867.1 |
|
North Carolina |
113,951 |
241.9 |
|
North Dakota |
9,824 |
22.4 |
|
Ohio |
162,974 |
425 |
|
Oklahoma |
45,511 |
91.5 |
|
Oregon |
59,958 |
132.1 |
|
Pennsylvania |
182,943 |
498.1 |
|
Rhode Island |
17,600 |
43.1 |
|
South Carolina |
48,766 |
120.5 |
|
South Dakota |
10,299 |
24.9 |
|
Tennessee |
61,399 |
452.3 |
|
Texas |
303,181 |
690.5 |
|
Utah |
37,981 |
81.2 |
|
Vermont |
9,678 |
26 |
|
Virginia |
133,856 |
312.9 |
|
Washington |
105,602 |
227.3 |
|
West Virginia |
19,073 |
43 |
|
Wisconsin |
96,604 |
226.1 |
|
Wyoming |
8,696 |
14.7 |
Source: IRS Statistics of Income Division
State by State Benefits of the Renewable Energy and Jobs Creation Act:
Sales Tax Deduction
|
|
# of Families |
Deduction ($ millions) |
|
United States |
11,149,087 |
17,565 |
|
Alabama |
97,287 |
146 |
|
Alaska |
24,477 |
20 |
|
Arizona |
284,095 |
475 |
|
Arkansas |
52,631 |
99 |
|
California |
1,208,854 |
1,963 |
|
Colorado |
119,472 |
171 |
|
Connecticut |
77,613 |
67 |
|
Delaware |
1,109 |
1 |
|
D.C. |
5,036 |
4 |
|
Florida |
2,200,685 |
3,062 |
|
Georgia |
151,269 |
211 |
|
Hawaii |
23,253 |
21 |
|
Idaho |
39,067 |
51 |
|
Illinois |
379,192 |
597 |
|
Indiana |
42,523 |
58 |
|
Iowa |
50,335 |
42 |
|
Kansas |
68,566 |
101 |
|
Kentucky |
54,567 |
51 |
|
Louisiana |
90,666 |
243 |
|
Maine |
16,129 |
11 |
|
Maryland |
58,511 |
52 |
|
Massachusetts |
66,190 |
51 |
|
Michigan |
215,867 |
245 |
|
Minnesota |
76,411 |
85 |
|
Mississippi |
79,287 |
110 |
|
Missouri |
92,287 |
133 |
|
Montana |
1,225 |
1 |
|
Nebraska |
33,400 |
38 |
|
Nevada |
346,612 |
574 |
|
New Hampshire |
3,293 |
2 |
|
New Jersey |
268,317 |
255 |
|
New Mexico |
35,259 |
48 |
|
New York |
391,715 |
520 |
|
North Carolina |
138,849 |
171 |
|
North Dakota |
14,867 |
14 |
|
Ohio |
129,804 |
174 |
|
Oklahoma |
67,369 |
98 |
|
Oregon |
4,319 |
7 |
|
Pennsylvania |
169,066 |
209 |
|
Rhode Island |
15,564 |
18 |
|
South Carolina |
70,312 |
74 |
|
South Dakota |
58,868 |
79 |
|
Tennessee |
574,393 |
1,229 |
|
Texas |
2,056,678 |
3,668 |
|
Utah |
51,419 |
78 |
|
Vermont |
8,584 |
7 |
|
Virginia |
95,063 |
86 |
|
Washington |
910,648 |
2,000 |
|
West Virginia |
10,694 |
14 |
|
Wisconsin |
71,052 |
68 |
|
Wyoming |
46,338 |
63 |
Source: IRS Statistics of Income Division
State by State Benefits of the Renewable Energy and Jobs Creation Act:
Educator Expenses
|
|
# of Teachers |
Deductions ($ millions) |
|
United States |
3,404,193 |
850 |
|
Alabama |
46,343 |
11.5 |
|
Alaska |
7,961 |
2 |
|
Arizona |
64,878 |
16.1 |
|
Arkansas |
26,454 |
6.6 |
|
California |
320,721 |
80.8 |
|
Colorado |
52,280 |
12.6 |
|
Connecticut |
53,699 |
13.5 |
|
Delaware |
10,522 |
2.6 |
|
D.C. |
5,010 |
1.1 |
|
Florida |
178,655 |
45.2 |
|
Georgia |
115,214 |
28.8 |
|
Hawaii |
15,213 |
3.7 |
|
Idaho |
14,324 |
3.4 |
|
Illinois |
150,848 |
37.5 |
|
Indiana |
63,145 |
15.5 |
|
Iowa |
35,895 |
8.8 |
|
Kansas |
34,363 |
8.4 |
|
Kentucky |
40,695 |
9.9 |
|
Louisiana |
46,812 |
11.8 |
|
Maine |
17,938 |
4.4 |
|
Maryland |
72,639 |
17.9 |
|
Massachusetts |
94,577 |
23.7 |
|
Michigan |
112,277 |
27.9 |
|
Minnesota |
58,541 |
14.1 |
|
Mississippi |
30,881 |
7.8 |
|
Missouri |
66,253 |
16.4 |
|
Montana |
10,684 |
2.6 |
|
Nebraska |
22,702 |
5.6 |
|
Nevada |
23,665 |
6 |
|
New Hampshire |
20,419 |
5 |
|
New Jersey |
139,205 |
35.6 |
|
New Mexico |
23,750 |
6 |
|
New York |
264,817 |
68.2 |
|
North Carolina |
105,489 |
25.9 |
|
North Dakota |
6,900 |
1.7 |
|
Ohio |
128,999 |
31.3 |
|
Oklahoma |
38,706 |
9.8 |
|
Oregon |
33,556 |
7.9 |
|
Pennsylvania |
151,250 |
37.3 |
|
Rhode Island |
16,642 |
4.2 |
|
South Carolina |
47,505 |
11.9 |
|
South Dakota |
9,147 |
2.3 |
|
Tennessee |
59,820 |
15 |
|
Texas |
284,555 |
72.7 |
|
Utah |
22,152 |
5.3 |
|
Vermont |
9,754 |
2.4 |
|
Virginia |
94,166 |
22.8 |
|
Washington |
63,961 |
15.9 |
|
West Virginia |
16,902 |
4.3 |
|
Wisconsin |
66,846 |
16.3 |
|
Wyoming |
6,463 |
1.6 |
Source: IRS Statistics of Income Division
State by State Benefits of the Renewable Energy and Jobs Creation Act:
Child Tax Credit
|
|
# of Children |
|
United States |
13,072,472 |
|
Alabama |
235,305 |
|
Alaska |
23,530 |
|
Arizona |
343,777 |
|
Arkansas |
150,334 |
|
California |
2,047,154 |
|
Colorado |
181,708 |
|
Connecticut |
87,585 |
|
Delaware |
28,760 |
|
D.C. |
20,916 |
|
Florida |
756,898 |
|
Georgia |
431,393 |
|
Hawaii |
49,676 |
|
Idaho |
83,664 |
|
Illinois |
512,442 |
|
Indiana |
261,450 |
|
Iowa |
99,351 |
|
Kansas |
122,881 |
|
Kentucky |
166,021 |
|
Louisiana |
226,155 |
|
Maine |
37,910 |
|
Maryland |
156,870 |
|
Massachusetts |
143,798 |
|
Michigan |
393,482 |
|
Minnesota |
155,563 |
|
Mississippi |
164,714 |
|
Missouri |
247,070 |
|
Montana |
36,603 |
|
Nebraska |
66,670 |
|
Nevada |
118,960 |
|
New Hampshire |
20,916 |
|
New Jersey |
261,450 |
|
New Mexico |
121,574 |
|
New York |
720,295 |
|
North Carolina |
430,086 |
|
North Dakota |
19,609 |
|
Ohio |
422,242 |
|
Oklahoma |
179,093 |
|
Oregon |
155,563 |
|
Pennsylvania |
409,169 |
|
Rhode Island |
37,910 |
|
South Carolina |
202,623 |
|
South Dakota |
31,374 |
|
Tennessee |
267,986 |
|
Texas |
1,539,941 |
|
Utah |
138,568 |
|
Vermont |
20,916 |
|
Virginia |
227,461 |
|
Washington |
235,305 |
|
West Virginia |
79,742 |
|
Wisconsin |
180,400 |
|
Wyoming |
19,609 |
Source: Center on Budget and Policy Priorities, 5/19/2008
State by State Benefits of the Renewable Energy and Jobs Creation Act:
R&D Credit
|
|
# of Businesses |
Industrial R&D activity ($ millions) |
R&D as % of GDP |
|
United States |
|
204,250 |
1.88 |
|
Alabama |
1,296 |
698 |
0.54 |
|
Alaska |
16 |
30 |
0.09 |
|
Arizona |
985 |
2,711 |
1.46 |
|
Arkansas |
317 |
262 |
0.35 |
|
California |
5,741 |
45,618 |
3.18 |
|
Colorado |
1,450 |
4,168 |
2.21 |
|
Connecticut |
838 |
6,442 |
3.65 |
|
Delaware |
500 |
1,490 |
2.86 |
|
D.C. |
34 |
93 |
0.17 |
|
Florida |
2,392 |
2,974 |
0.50 |
|
Georgia |
1,724 |
2,226 |
0.71 |
|
Hawaii |
86 |
122 |
0.29 |
|
Idaho |
171 |
635 |
1.61 |
|
Illinois |
2,064 |
9,506 |
1.90 |
|
Indiana |
615 |
4,327 |
2.04 |
|
Iowa |
416 |
1,029 |
0.99 |
|
Kansas |
403 |
1,832 |
2.05 |
|
Kentucky |
513 |
650 |
0.55 |
|
Louisiana |
332 |
278 |
0.17 |
|
Maine |
154 |
331 |
0.86 |
|
Maryland |
856 |
2,452 |
1.20 |
|
Massachusetts |
2,478 |
10,788 |
3.70 |
|
Michigan |
2,111 |
16,548 |
4.98 |
|
Minnesota |
1,028 |
6,053 |
2.92 |
|
Mississippi |
164 |
147 |
0.22 |
|
Missouri |
704 |
2,523 |
1.33 |
|
Montana |
58 |
71 |
0.28 |
|
Nebraska |
463 |
400 |
0.64 |
|
Nevada |
277 |
365 |
0.37 |
|
New Hampshire |
445 |
1,351 |
2.75 |
|
New Jersey |
1,424 |
12,902 |
3.36 |
|
New Mexico |
775 |
278 |
0.49 |
|
New York |
2,213 |
8,819 |
1.02 |
|
North Carolina |
907 |
5,051 |
1.65 |
|
North Dakota |
84 |
410 |
1.95 |
|
Ohio |
1,415 |
5,445 |
1.38 |
|
Oklahoma |
165 |
401 |
0.39 |
|
Oregon |
1,014 |
3,223 |
2.64 |
|
Pennsylvania |
2,310 |
8,640 |
1.97 |
|
Rhode Island |
238 |
1,340 |
3.51 |
|
South Carolina |
624 |
1,364 |
1.16 |
|
South Dakota |
219 |
66 |
0.25 |
|
Tennessee |
387 |
1,150 |
0.57 |
|
Texas |
2,641 |
11,579 |
1.31 |
|
Utah |
1,264 |
1,036 |
1.37 |
|
Vermont |
130 |
388 |
1.69 |
|
Virginia |
1,230 |
2,683 |
0.92 |
|
Washington |
1,229 |
9,555 |
4.09 |
|
West Virginia |
51 |
205 |
0.47 |
|
Wisconsin |
1,358 |
2,660 |
1.38 |
|
Wyoming |
33 |
29 |
0.12 |
Source: Ernst & Young LLP/R&D Credit Coalition, 4/2008(2005 data).
State by State Benefits of the Renewable Energy and Jobs Creation Act:
Bond Authority Allocation
|
|
Amount ($ thousands) |
|
United States |
379,267 |
|
Alabama |
7,698 |
|
Alaska |
677 |
|
Arizona |
9,412 |
|
Arkansas |
3,921 |
|
California |
48,404 |
|
Colorado |
5,440 |
|
Connecticut |
3,346 |
|
Delaware |
801 |
|
D.C. |
1,180 |
|
Florida |
20,271 |
|
Georgia |
13,322 |
|
Hawaii |
1,129 |
|
Idaho |
1,468 |
|
Illinois |
14,790 |
|
Indiana |
7,944 |
|
Iowa |
3,356 |
|
Kansas |
3,459 |
|
Kentucky |
6,148 |
|
Louisiana |
7,677 |
|
Maine |
1,704 |
|
Maryland |
5,563 |
|
Massachusetts |
6,579 |
|
Michigan |
12,275 |
|
Minnesota |
4,229 |
|
Mississippi |
5,861 |
|
Missouri |
6,764 |
|
Montana |
1,314 |
|
Nebraska |
1,714 |
|
Nevada |
2,669 |
|
New Hampshire |
749 |
|
New Jersey |
6,076 |
|
New Mexico |
3,562 |
|
New York |
28,328 |
|
North Carolina |
11,444 |
|
North Dakota |
718 |
|
Ohio |
14,287 |
|
Oklahoma |
5,573 |
|
Oregon |
4,475 |
|
Pennsylvania |
14,082 |
|
Rhode Island |
1,304 |
|
South Carolina |
6,425 |
|
South Dakota |
924 |
|
Tennessee |
8,950 |
|
Texas |
37,781 |
|
Utah |
2,381 |
|
Vermont |
482 |
|
Virginia |
7,020 |
|
Washington |
6,528 |
|
West Virginia |
2,833 |
|
Wisconsin |
5,676 |
|
Wyoming |
554 |
Source: IRS Statistics of Income Division
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