House Again Passes Extension for Sales Tax Deduction, Waits for Senate ApprovalSeptember 26, 2008

Washington, D.C. In a move showing fiscal restraint, Congressman Lincoln Davis supported a House passed measure, H.R. 7060, the Renewable Energy and Job Creation Tax Act of 2008, extending certain energy tax incentives and a provision allowing Tennesseans to deduct State and local sales tax for an additional two years. The legislation adheres to PAYGO (pay-as-you-go) rules and is paid for using revenue-raising provisions.

Davis praised the inclusion of a sales tax deduction extension in today's legislation saying, "Tennesseans want their tax deduction and I will continue supporting legislation that allows for that reduction in their taxes."

This extension comes after significant efforts to protect, extend and make permanent that deduction. In 2003, Congressmen Cooper, Davis, Ford, Gordon and Tanner of Tennessee introduced the "Stop Discrimination Against Seven States Act of 2003," a bill to permanently make a sales tax deduction law. They later supported alternative legislation allowing for a temporary sales tax deduction that ultimately was signed into law.

The sales tax deduction has made a tremendous difference for families struggling to pay their bills. According to the House Ways and Means Committee, in 2006 alone, 574,393 Tennessee families elected to take the general state sales tax deduction on $1.2 billion in state and local taxes. This deduction expired in December of 2007, but will be extended through the end of 2008 if today's legislation becomes law.