Senate backs timber payments

By Matthew Daly, Associated Press Writer
Wednesday, September 24, 2008 | 4 comment(s)

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WASHINGTON — The massive tax relief bill passed by the Senate  would extend a multiyear program of payments to rural counties hurt by federal logging cutbacks.

It also extends billions of dollars in tax credits for renewable energy such as solar, wind and hydropower, as well as biomass and geothermal electricity. The Senate approved the bill 93-2 late Tuesday.

Sen. Ron Wyden, D-Ore., said the vote means that schools and law enforcement agencies across the West have a chance to receive the timber funding they were promised by the federal government.

“Now it’s up to the House and the president to do the right thing, or thousands of critical employees and hundreds of communities across Oregon could face a very difficult winter,” Wyden said.

The tax bill includes a four-year, $2.1 billion reauthorization of the Secure Rural Schools and Comm-unity Self-Determination Act of 2000, commonly known as “county payments.”

The bill also provides $1.7 billion for a separate program that compensates states for lost tax revenue from federally owned land.

The timber law provides hundreds of millions of dollars to Oregon, Idaho and other states, mostly in the West, that once depended on federal timber sales to pay for schools, libraries and other services in rural areas.

Lawmakers from both parties have tried for years to secure a long-term commitment for the program, which expired last year but was extended until the end of this month.

The law helps pay for schools and services in 700 counties in 39 states. Without the money, teachers and law enforcement officers in rural districts throughout the country could lose their jobs, lawmakers said.

Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, called the vote “tremendous news for the folks in rural Montana. This is going to be a great shot in the arm for many rural communities, create good paying jobs and make sure folks have access to the services they deserve.”

Sen. Larry Craig, R-Idaho, said the tax vote “sends a message back to our school districts and our counties that we are here to help and to stabilize the very dire economic conditions those school districts and counties are experiencing.”

Sen. Maria Cantwell, D-Wash., said the energy tax credits could mean tens of thousands of jobs.

“At a time when our economy is lagging, this legislation will help create jobs, support working families and businesses, and help reduce our dependence on foreign oil,” she said.

Cantwell and Sen. Patty Murray, D-Wash., called the sales tax provision a matter of basic fairness. Washington is one of at least eight states without an income tax in which taxpayers could lose the ability to deduct state or local sales taxes on their federal returns. The Senate bill would extend the sales tax deduction for two years.

“This is great news for Washington state families who can breathe a sigh of relief knowing that they will be treated fairly at tax time,” said Murray.

Still, with House passage of the bill far from certain, senators said their work was not done.

“County budgets are being depleted by the day, and time is running out for libraries and schools to stay open,” said Sen. Gordon Smith, R-Ore. “The need has never been greater for the Oregon delegation to come together and work across the aisle to ensure Oregon’s counties are not left behind.”

  The bill is H.R. 6049

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On the Net:

Senate Finance Committee: http://finance.senate.gov

Bill text: http://thomas.loc.gov
Bill highlights


Energy incentives


n Extends for one or two years and expands production tax credits for wind, refined coal, biomass and marine renewables. $5.8 billion.


n Extends through 2016 the investment tax credit for solar energy. $1.9 billion.


n Extends through 2016 the credit for residential solar property. $1.3 billion.


n Provides new tax credits for creation of advanced coal electricity projects and certain coal gasification projects. $1.4 billion.


Alternative Minimum Tax


n Increases personal credits against the AMT, shielding more than 20 million taxpayers from the tax. $61.8 billion.


Individual and business tax credits


n Extends until end of 2009 the research and development credit. $19 billion.


n Extends until end of 2009 the deduction for state and local general sales taxes. $3.3 billion.


n Extends until end of 2009 a tax deduction for higher education costs. $5.3 billion.


Source: The Associated Press
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Andrew G wrote on Sep 25, 2008 8:10 AM:

Just another stunt by Wyden to pour more pork on to a massive bill and give people the idea he's doing something.

Niel wrote on Sep 25, 2008 8:07 AM:

We don't want welfare for not logging,LET US LOG.We don't need Wyden or Smith to help us,LET US LOG. The counties will waste the payments on other things (payraises ,new cars ect),LET US LOG.Thers's a simple way to fix all the county problems,LET US LOG.

CBNative wrote on Sep 25, 2008 7:09 AM:

What makes them think that this one is going to get past the president? They always attach this bill to something the Prez is against so it has no chance of getting through. Instead of Fed. welfare why not take back our forests and do the right thing in managing them the right way. Private owners have been doing it without clearcutting the land for years and they seem to be doing OK

Able wrote on Sep 24, 2008 3:54 PM:

Just what ol' Wyden and Smith like to do,more pork. The country is ready to collaspe and these jokers what more welfare for the county's.


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