WASHINGTON, DC – A tax credit allowing filers to deduct state and local general sales taxes from their federal taxes, proposed for an extension by Congressman Alan Grayson (D-FL09), was made permanent today in the tax extension bill passed by the House of Representatives by a vote of 318-109.
The extension was one of ten tax measures important to Floridians that Congressman Grayson introduced earlier this year and that were included in the bill. Congressman Grayson had proposed nine of these extensions for a modest one year each, but the final bill extended each of these for either two years or permanently.
“These tax extensions will mean billions of dollars for Floridians and all Americans,” Congressman Grayson said. “The extension of the local and state sales tax deduction alone will mean $2.5 billion a year for Florida residents. This is money that will provide an enormous boost to our economy.”
Along with the sales tax deduction, Congressman Grayson’s proposals included in the bill will also extend:
• tax-free contributions to charities from individual retirement plans, extended permanently
• tax credits for energy-efficient existing homes, extended for two years
• tax credits for energy-efficient new homes, extended for two years
• employer tax credits for hiring active-duty members of the armed services, extended permanently
• enhanced charitable deductions for donations of food, extended permanently
• deductions for mortgage insurance premiums, extended for two years
• cost recovery for qualified improvements in apartments, restaurants, and retail establishments, extended permanently
• deductions for qualified tuition and other related education expenses, extended for two years
• deductions for the amount of debt forgiven in home foreclosures, extended for two years
“Our economy depends on a tax code that pays the federal government’s bills, accomplishes important social priorities like home ownership and energy efficiency, and ensures that everyone pays his or her fair share,” Congressman Grayson added. “These tax extensions will move us closer to all of these goals.”
Congressman Alan Grayson represents Florida’s 9th Congressional District, which includes Osceola County, as well as parts of Orange and Polk counties.
