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Mixed year for corporate bond sales
stephen taub

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Opinions and views from expert CFOZone members.

Dec 25

Who says President Obama is anti-business?

Posted by Stephen Taub in tax credit, TaxCongressCash

Stephen Taub

The recently signed tax compromise bill-also unofficially known as Stimulus II-not only contains a two-year extension of the Bush tax cuts for everyone, including those who don't want it except for the politicians who obsessively pushed for it. It also included about 50 or so tax breaks for businesses.

I already detailed the bonus depreciation and R&D tax credit.

However, as usual there are many more targeted ones for the industries whose lobbying did the best job of cajoling or bullying Congress.

The Associated Press points out, for example, the bill contains an exemption that allows multinational financial giants such as banks, insurance companies and other financial firms to shield foreign profits from being taxed by the US through 2011. It estimates the cost to come to $9.2 billion.

You'd think this industry already got enough tax payer money, which it will graciously use, in part, to dole out generous bonuses as their contribution to economic stimulus.

Mohito fans will be interested to hear that Congress also approved increased tax rebates to Puerto Rico and the Virgin Islands from a tax on rum imported into the United States. This will cost: $262 million.

Congress also is spending $3 billion to extend for one year an investment tax credit for developing wind, solar and other renewable energy. "This is a great holiday present for the 85,000 American workers in the wind energy industry, tens of thousands of whom will now be able to get back to work in a sector that has been a bright spot in the recession so far," Denise Bode, CEO of the American Wind Energy Association, said in a statement. At least she acknowledges what it is.

The AP points out other goodies in the bill:

--A one-year extension of a 50 percent tax credit for expenses related to railroad track maintenance.

--Enhanced deductions for one year for companies that donate food to the needy, books to public schools or computers to public libraries.

--Extends a tax break that allows TV and movie productions to more quickly write off expenses.

Ah, you have to love fiscal responsibility.

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