Sales tax deduction, relief from Alternative Minimum Tax, renewable energy incentives included in measure

October 1, 2008

Washington, D.C. – Nevadans would receive major tax benefits in the Emergency Economic Stabilization Act passed Wednesday night by the Senate. The measure now moves to the House for an anticipated Friday vote.

The package includes tax incentives for the use and production of renewable energy, relief from the Alternative Minimum Tax for millions of middle-class families and an extension of the sales tax deduction that provides a measure of tax fairness for hundreds of thousands of Nevadans.

It also includes important help for mental health services, ensuring that plans covering these important benefits cannot provide different financial requirements or treatment limitations than they would for medical or surgical benefits.

Rural Nevada would see major benefits from full funding of the Payment In Lieu of Taxes (PILT) program through Fiscal Year 2012 and reauthorization of the Secure Rural Schools (SRS) program through 2011 with a significant formula change that will bring tens of millions of dollars in new money to Nevada's rural communities.

"This isn't a bailout for Wall Street. This is an economic recovery effort for people in Las Vegas, in Reno and throughout rural Nevada," Reid said. "We're providing tax relief and incentives for Nevada middle-class families, and making sure the credit market can still provide them with car loans and other forms of lending."

Following is a list of items in the measure that help Nevada:

Energy Tax Incentives

· Extension of the production tax credit for electricity produced from renewable sources, such as wind, biomass and geothermal. The credit for wind is extended for one year. The credits for other renewable sources are extended for two years.

· 8-year extension of the investment tax credit for commercial solar energy property.

· 8-year extension of the tax credit for residential solar property and an expansion of the credit up to 30 percent of total investment beginning in 2009, removing the existing dollar cap.

· A new tax credit, capped at $4,000, for residential wind investments and geothermal heat pumps.

· $800 million authorization for Clean Renewable Energy Bonds to finance facilities generating electricity from wind, geothermal, biomass and other renewable sources.

· A new credit for plug-in electric drive vehicles.

· Extends tax credits for investments in energy efficient improvements to existing and new homes.

· Extends tax credits for energy efficient appliances.

Tax Relief and Incentive Extenders

· Extends the research and development tax credit for two years.

· Extends the sales tax deduction for two years.

· Extends the tuition deduction for two years.

· Extends the new property tax deduction for those taxpayers who don't itemize their deductions for an additional year. This deduction was originally enacted as part of the Housing and Economic Recovery Act signed into law in July.

Alternative Minimum Tax

· Extends higher AMT exemption for 2008 to protect middle-class families.

· Extends and modifies AMT credit for "phantom" incentive stock option income.

Other Provisions

· Payments in Lieu of Taxes & Secure Rural Schools - fully funds the PILT program through fiscal year 2012 and authorizes the SRS program through 2011, with a significant formula change that will bring tens of millions of dollars in new money to Nevada's rural communities.

· Expands Child Tax Credit refundability for low-income families for 2008.

· Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act. This bill ensures that plans covering mental health services cannot provide different financial requirements or treatment limitations than they provide for medical or surgical benefits. When this law is enacted, 113 million people across the country will have the right to non-discriminatory mental health coverage, including 82 million individuals enrolled in self-funded plans who cannot be assisted by State parity laws.