Contact: Barbara Riley
Tuesday, September 23, 2008

WASHINGTON, DC – United States Senator John Sununu (R-NH) today (9/23) voted to pass bipartisan Senate legislation that will provide incentives for renewable energy, extensions of expiring tax breaks, and protect millions of Americans from the implementation of the Alternative Minimum Tax.

The United States Senate passed the “Energy Improvement and Extension Act of 2008’’ (HR 6049) by a vote of 93-2. The comprehensive legislation includes Sununu’s provision to provide a 10 percent tax credit for the purchase of energy-efficient wood pellet stoves. The bill now moves to the House for consideration.

“Americans are facing record-high energy prices and a housing and credit crisis that impacts financial markets on a daily basis. Now, more than ever, they need to know Congress is keeping their interests first and taking steps to strengthen the economy,” said Sununu.  “The renewable energy tax incentives passed today will foster job growth in the wind, solar, geothermal and biomass industries. My 10 percent tax credit for high-efficiency wood pellet stoves will assist many Granite Staters as they move away from heating their homes with costly heating oil. I have consistently fought to expand renewable energy tax incentives and I am pleased that my Senate colleagues agree with this approach. Moreover, the renewable energy tax credits in this bill are fully paid for by eliminating unnecessary subsidies for oil and gas companies.”

 “Congress must take additional steps to protect taxpayers by preventing the Alternative Minimum Tax from hitting millions across the country – a move that allows them to keep more money in their pockets to use as they see fit,” Sununu continued. “Furthermore, through the extension of a tuition tax credit and a teacher expense deduction, in addition to a modified child tax credit, we show Americans that we understand the pressures they are facing and we are working to alleviate them.”

The “Energy Improvement and Extension Act of 2008’’ covers keys issues including:

• Alternative Minimum Tax (AMT) – Extends and expands the exemption levels in current law to prevent additional taxpayers from having to pay the Alternative Minimum Tax.  Without this important fix, the AMT - which was originally created to capture 155 high-income taxpayers who avoided paying federal income tax - would unfairly and excessively tax over 20 million hardworking middle-class Americans.

• Child Tax Credit – Expands the applicability of the current tax credit provided to taxpayers for each child under the age of 17.  The provision lowers the minimum required earnings from the current $12,050 to $8,500, expanding the availability of the credit to millions of low-income children and their families.

• Tuition Deduction – Extends the current tax deduction for college tuition expenses through 2009. The maximum deduction is $4,000.

• Teacher Expense deduction – Extends a provision allowing teachers to deduct up to $250 of personal out of pocket costs for school supplies and educational expenses through 2009.

• Research and development tax credit – Extends and expands the existing tax credit through 2009, providing businesses a credit for investments made into scientific research and development; and,

• Deduction for Property Taxes – Extends for an additional year a provision that allows taxpayers that do not itemize to deduct the cost of property taxes.

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