Washington, D.C. -  Today, the U.S. House of Representatives passed bipartisan legislation to prevent tax increases on millions of working Americans, boost investment opportunities for domestic employers and encourage the production and use of renewable energy.  U.S. Rep. Phil English (R-Pa.), Ranking Member on the Select Revenue Measures Subcommittee, championed several of the key provisions in H.R. 6094, the Energy and Tax Extenders Act of 2008, which passed the House today by 263 to 160.

“As families in western Pennsylvania and throughout the rest of the country continue to tighten their belts and adjust to the slowing economy, this legislation will shield taxpayers from getting hit with tax hikes, allowing them to continue to keep more of their hard-earned dollars,” English said.  “Although this bill contains some extraneous provisions that are of doubtful merit, the bill on balance will provide timely relief to American taxpayers.”

English has been a vocal advocate of a comprehensive energy plan to help stem high energy costs and promote increased domestic supply.  As a senior member of the House Ways and Means Committee, English served as one of the key architects in developing tax incentives to encourage greater use of renewable energy like biofuels, wind and solar.  Originally included in the Energy Policy Act of 2005, many of these tax provisions were extended in the House bill passed today.

“By extending tax incentives to promote the use of renewable energy and energy conservation, this measure sends a strong signal that Congress is committed to developing a strong energy policy that will meet the demands of the 21st century,”
English said.

H.R. 6094 extends for one year, through December 31, 2009, the Section 45 production tax credit (PTC) to incentivize greater utilization of renewable energy and help American companies that produce wind energy generation equipment, like Hodge Foundry in Greenville, Pennsylvania. Since its enactment, the Section 45 production tax credit (PTC) has been a successful program in spurring the development of renewable electricity, including wind power facilities. And to further energy conservation and efficiency, this legislation extends the tax credits for energy efficiency improvements to existing homes and energy-efficient appliances as well as the deduction for energy efficient commercial buildings.

“By using the tax code to promote energy diversification we can lower energy prices for Americans across the country and help community businesses make the transition to cleaner production,” English said. “The energy tax incentives included in this measure have garnered strong, bipartisan support and will continue to create opportunities to make our economy competitive, create more jobs and at the same time, benefit American consumers.”

Importantly for working families, H.R. 6094 included a provision long championed by  English to reduce taxable income for taxpayers who pay qualified postsecondary education expenses. In 2007, taxpayers with adjusted gross income (AGI) that did not exceed $65,000 ($130,000 for joint returns) were entitled to a maximum deduction of $4,000 and taxpayers with AGI that did not exceed $80,000 ($160,000 for joint returns) were entitled to a maximum deduction of $2,000.  H.R. 6094 extends the current $4,000 income tax deduction for qualified higher education for an additional year through 2009. This provision is a temporary version of English’s bill, H.R. 686, the Tuition Deduction Permanency Act, to make tuition deduction permanent.

“By reducing the tax burden associated with saving and paying for college, we can offer a generous benefit for students and parents,” English said.  “Although we were unable to make the current tuition deduction permanent, families will still have an additional year to save and take advantage of the higher education deduction.”

H.R. 6094 includes another provision long pushed by English to extend the current $250 deduction for teachers to help cover out-of-pocket costs incurred to purchase books, supplies and other classroom equipment.  This tax incentive will ensure that the tax deduction is available to all individual taxpayers regardless of whether they itemize their deductions and extend it for an additional year. English originally secured inclusion of this provision in a larger tax vehicle in 2005 and has since sought its extension.
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Furthermore, H.R. 6094 ensures states can continue to issue Qualified Zone Academy Bonds (QZABs) to help repair schools, purchase school equipment and train teachers in economically distressed areas. English originally championed this provision in 2005 and has since fought to successfully secure extensions of the tax break. QZABS are tax credit bonds which are issued by states and local governments to help repair schools, purchase school equipment and train teachers in economically distressed areas.  The provision would be extended for an additional year through 2009. 

Finally, H.R. 6094 extends a variety of tax incentives to bolster investment opportunities for American companies, including the research and development tax credit and the tax treatment of speedways and racetracks so motorsports facilities, like Lake Erie Speedway, can plan for long-term capital investments and stay competitive.

“Today, the House took a step forward in passing legislation that will preserve our pro-growth policies so that we can give our economy a much needed shot-in-the-arm and continue to create new jobs,” English concluded.

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