The U.S. Senate will be in session Saturday, to vote on a measure submitted by Senator Max Baucus, D-Mont. Baucus introduced legislation to permanently cut taxes for middle class families making up to $250,000 and individuals making up to $200,000 per year. The legislation would also extend critical tax cuts for individuals, families and employers and provide families with greater tax certainty by instituting a permanent estate tax policy and extends tax credits for ethanol and biodiesel for one year.
The bill would make permanent the 2009 estate tax rate of 45%, with an exemption for estates under $3.5 million, indexed for inflation. The bill also would extend through 2011 the per-gallon tax credits and outlay payments for ethanol. The blender’s credit would be extended at a rate of 36 cents per gallon, while the small producer’s credit would be extended at a rate of 8 cents per gallon. The bill also extends through 2011 the existing tariff on imported ethanol and the related tariff on ethyl tertiary-butyl ether.
For biodiesel, the bill extends through 2011 the $1 per gallon production tax credit for biodiesel, and the small agric-biodiesel producer credit of 10 cents per gallon. The bill also extends through 2011 the $1 per gallon production tax credit for diesel fuel created from biomass.