The "New" Bail Out Bill - More Tax Breaks

Thursday, October 2, 2008 - 9:06 AM EDT
| Modified: Thursday, October 2, 2008 - 9:31 AM
Bailout bill includes $100B in energy, other tax breaks
Baltimore Business Journal
The $700 billion bank rescue bill approved by the Senate Wednesday
night includes $100 billion in tax cuts for alternative energy and
other breaks for businesses and individuals.

The tax breaks passed by the Senate include $17 billion in energy
incentives, renews business research credits and puts off an
alternative minimum tax hike for 24 million households.

The energy tax credits are seen as crucial to the continued growth of
the alternative energy industry. Likewise, the research tax breaks is
expected to boost clean tech efforts, as well as bolster more
mainstream businesses.

The Senate bailout plan is to pay for much of the tax breaks by
cutting back on breaks to oil companies and eliminating deferral of
taxes on profits earned in offshore funds.

Also buried in the plan are numerous other tax breaks, including
doing away with a 39-cent excise tax on makers of wooden arrows
designed for children as well as tax breaks for movie producers and
stock-car racetrack owners.