TANNER HELPS HOUSE PASS TAX RELIEF

WASHINGTON -- Congressman John Tanner today praised passage of the “Renewable Energy and Job Creation Act of 2008,” which – among other provisions – extends the tax deductions Tennesseans can claim for paying state and local sales taxes. The bill, H.R. 6049, passed the House Wednesday by a vote of 263 to 160.

The bill also addresses a number of tax and energy concerns, including the extension of dozens of tax provisions and the creation of energy-related tax incentives. Some of the bill's provisions include:

• Tax credit bonds to state and local government to make energy conservation investments in public infrastructure.

• Deduction of tuition and related education expenses for all tax filers.

• Additional standard deduction for property taxes paid by non-itemizers.

• Extension of allowing servicemembers to include combat pay in earned income for the earned income tax credit.

• Expansion of eligibility for refundable child tax credit.

• Deduction of out-of-pocket expenses by teachers for classroom supplies.

• Research and development credits to spur economic innovation.

• Tax credits for purchase of energy-efficient appliances.

“Thousands of Tennessee families rely on sales tax deduction to ensure they are not penalized because Tennessee has a different tax structure,” said Rep. Tanner, a member of the House Ways and Means Committee, which wrote the bill. “I am proud of our work to extend this important deduction in a fiscally responsible way that does not add to our national debt.”

According to the House Ways and Means Committee, nearly 575,000 Tennessee families elected to take the general state sales tax deduction in 2006. The deduction expired in December of 2007, but will be extended through the end of 2008 if this legislation becomes law.

Tanner represents Tennessee’s 8^th Congressional district in west and middle Tennessee. He is a founding member of the fiscally conservative Blue Dog Democrats.

# # #

Contact: Randy Ford, 202.225.4714