Tax News

CCH (cch.taxgroup.com) reports:

  Senate Finance Committee ranking member Charles E. Grassley, R-Iowa, has filed amendments to the economic stimulus legislation set for committee consideration on January 27 that would either extend or make permanent the wind energy tax credit and ease access to loans for higher education. He said his clean energy proposals would maintain the option for producers to take either the production tax credit (PTC) or investment tax credit (ITC) for 2009 and 2010.

  Grassley is also proposing a new 10-year carryback of the credit, either the PTC or ITC, depending on a wind energy company's election. The House bill has a provision to elect the PTC or the ITC in 2009 and 2010, but only allows a one-year carryback. Senate Finance Committee Chairman Max Baucus, D-Mont. included in his Mark the same election and a five-year carryback of either the PTC or the ITC.

  In addition, Grassley filed three tuition-assistance amendments. One proposal would giveCode Sec. 529 participants the opportunity to change investments up to four times a year. The proposed amendment builds on a December 2008 decision by the Treasury Department to allow Code Sec. 529 account holders to change investment options twice a year (Notice 2009-1; TAXDAY, 2008/12/24, I.2). The second education amendment prevents states receiving Federal Medical Assistance Percentage (FMAP) funds from increasing tuition at publicly funded universities during the period of time that the enhanced federal funding is in effect. A third Grassley amendment would increase the level of the proposed American Opportunity Tax Credit from $2,500 to $3,250 for single filers with incomes between $50,000 and $80,000 annually

  By Jeff Carlson, CCH News Staff

SFC Release: Grassley Works to Bolster Wind Energy Production and Create Jobs in Wind Energy Sector

SFC Release: Grassley Works to Increase Access to College and Jobs