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Friday, December 10, 2010 - 8:45AM

Senate Majority Leader Harry Reid, D-Nev., last night introduced the  Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, a bill to extend current tax rates for all income levels, extend unemployment insurance benefits and temporarily reduce Social Security taxes. The bill also includes a one year extension through 2011 of the Section 1603 grant in lieu of energy tax credit program, a two year extension through 2011 of the new markets tax credit (NMTC) at a level of $3.5 billion each year, a two year extension of the increase in the rehabilitation tax credit for property placed in service through the end of 2011 in the Gulf Opportunity (GO) Zone, an extension for one year through 2011 of the placed in service date for GO Zone low-income housing tax credit (LIHTC) properties, and an extension for one year through 2011 of bonus depreciation for GO Zone property.

The Senate bill introduced yesterday does not include an extension of the Section 1602 LIHTC cash grant exchange program, additional funding for the Section 48C advanced energy manufacturing tax credit, an extension of the Build America Bonds program, a provision to allow the NMTC to offset the alternative minimum tax (AMT), nor any funding for the National Housing Trust Fund.

It is expected that additional changes to the tax extenders package may be made as the House and Senate consider the legislation in the coming days. Follow @Novogradac to get regular updates on the status of the bill, tune in to the Tax Credit Tuesday podcast on December 14 to hear about the latest developments, and join Novogradac & Company for the 17th Annual Tax Credit Developers Conference on January 20-21, 2011 in Miami, Fla. to hear expert discussion and analysis of the measure.

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