BAUCUS, GRASSLEY RELEASE DRAFT JOBS BILL WITH TAX EXTENDERS
Senate Finance Committee Chairman Max Baucus, D.-Mont., and Ranking Member Chuck Grassley, R-Iowa, today released a draft of jobs legislation called the Hiring Incentives to Restore Employment (HIRE) Act. The draft bill extends several tax provisions that expired on December 31, 2009; the HIRE Act would extend the Section 1602 low-income housing tax credit (LIHTC) cash grant exchange program that was created by the American Recovery and Reinvestment Act (Recovery Act); extend for one year the new markets tax credit (NMTC); and extend Gulf Opportunity (GO) Zone provisions. The tax extenders are estimated to cost about $31 billion over 10 years. Sens. Baucus and Grassley list three offsets for the cost of the HIRE Act, including codification of the economic substance doctrine.
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In addition, Michael Novogradac, CPA, will review the proposed legislation in detail in the next Tax Credit Tuesday podcast.
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