Senate Passes $8B in Gulf Coast Tax Breaks

WASHINGTON -- The Senate passed nearly $8 billion in tax breaks for Gulf Coast businesses on Friday with an exception drawn to prohibit gambling from being subsidized by taxpayer dollars, The Associated Press reported.

Its central benefits increase write-offs for small business investments and offer additional write-offs for other businesses purchasing equipment and new property. It also aims also to rehabilitate damaged buildings, defray the cost of cleanup and demolition and aid small timber companies. Lawmakers let individuals who experienced losses from hurricanes Rita and Wilma claim some of the same assistance already extended to those hurt by Hurricane Katrina.

The bill excludes certain businesses from using special tax breaks, applying limitations to country clubs, casinos, hot tub facilities, liquor stores, massage parlors, golf courses, racetracks and tanning parlors.

The bill expanded a tax credit for businesses that keep employees on the payroll while shut down due to storm damage. Students attending college in the region would see their education tax credits double.

-- NYSSCPA.org News Staff

Posted on 12/16/05