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House passes extenders for expiring IRS tax deductions, including income–tax deductions for sales and property tax

Courtesy Ashley Patterson,

Washington, DC – Congressman Henry Cuellar (TX-28) today voted for the Tax Extenders Act of 2009, a bi-partisan bill to extend $31 billion worth of federal income tax deductions scheduled to expire at the end of this year. The tax breaks would provide relief for millions of Americans by extending deductions for rising property taxes, small businesses, state and local taxes and various tuition-related expenses.

“These are real tax cuts for millions of middle-class families and they will put hundreds if not thousands of dollars back into the pocketbooks of Americans,” said Congressman Cuellar. “Families count on these deductions as they budget during the year and they’re a sure way to provide relief in these hard economic times.” 

The individual tax deductions will bring an estimated $5 billion worth of tax credits back to Americans, providing up to 30 million homeowners with property tax relief, 4.5 million families with college tuition-related deductions and saves 3.4 million teachers money for their classroom expenses.

The bill also extends a tax credit for small businesses who continue to pay National Guard and Reserve employees when they are called up to serve.

Congressman Cuellar strongly supported and sponsored several parts of the bill, including a provision to extend tax credits for Texas’ low-income rural and urban community “Empowerment Zones.” These areas can apply to receive favorable tax credits to boost local job growth and stimulate local economies.

Part of the Rio Grande Valley and the City of Cotulla, Texas are considered “Empowerment Zones” and currently Cotulla receives these tax breaks. Both areas are represented by Congressman Cuellar.

“Tax breaks to underserved communities give them the leg up they need to spawn growth in their communities,” said Congressman Cuellar. “Saving tax dollars means more money can be invested in the community and attract outside investors to develop in their towns.”

Congressman Cuellar also sponsored a tax provision to enhance charitable deductions for book contributions to public schools and supported tax deductions for areas affected by federally-declared disasters.

The extensions would also serve as a boon to the sluggish real estate and retail development markets, providing property tax credits for homeowners and $5 billion worth of incentives to encourage improvements to retail stores, constructions of restaurants and improvements to local development.

Low-income housing tax credits would also be saved, providing $3 billion worth of economic encouragement for developers to build-up economically distressed areas.

 The House passed Wednesday H.R. 4213, the Tax Extenders Act of 2009, by a vote of 241 to 181. If passed by the Senate and signed into law by the President, these tax extensions will be extended by one and two years.

For more information on the extensions included in the Tax Extenders Act of 2009, please visit: http://www.rules.house.gov/111/LegText/111_4213_txt.pdf