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LABOR & EMPLOYMENT LAW — 02/05/10

Senate Democrats plan to move jobs, tax breaks legislation

Senate Democratic leaders plan to bring a jobs-related bill to the floor during the week beginning February 8 that would include targeted small business tax breaks in addition to extending unemployment insurance and COBRA benefits. The February 4 announcement was short on details but the measure is expected to provide a job creation tax credit for employers adding new employees in 2010 and an expansion of small business expensing rules.

The tax breaks were drafted by the Senate Finance Committee although a formal markup is not expected. Instead, Senate Majority Leader Harry Reid (D-Nev), will bring the bill to the floor on February 8 with an eye on final passage before lawmakers leave for the President’s Day recess which begins on February 15.

The measure also includes the streamlining Small Business Administration lending rules to make loans more accessible and energy efficiency rebates for homes and businesses which has been informally dubbed a “cash for caulking” program. In addition, there are provisions to provide bonds for local government infrastructure projects and to extend surface transportation authorization.

The bill faces an uncertain future as no Senate Republicans have backed the plan and House Democratic leaders remain wary of the Senate’s jobs agenda which differs in its priorities and involves moving smaller bills over a period of time. The House narrowly approved a $154 billion jobs package (H.R. 2847) on December 16, 2009.

For more information on this and other topics, consult CCH Employment Practices Guide or CCH Labor Relations.

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