Tax Provisions Moving Slowly Forward

Finance committee is working toward a deal.

Senate Majority Leader Harry Reid, D-Nev., plans to call up legislation that would extend dozens of expired and expiring provisions, including incentives for renewable energy. Reid says he hopes to work out an agreement with Minority Leader Mitch McConnell, R-Ky., that would separate votes on renewable-energy tax incentives, other tax extenders and a "patch" to prevent the alternative minimum tax from hitting millions more taxpayers.

Lawmakers have been deadlocked over the tax provisions for most of the 110th Congress. But, one possibility now under discussion would have the energy tax breaks fully offset, the other extensions partially offset and the AMT patch without offsets. Key senators on the Finance Committee made progress over the weekend toward a deal.

Meanwhile, the House is waiting for the Senate to send back legislation extending alternative energy tax breaks. House Majority Leader Steny Hoyer, D-Md., says the House will act quickly to pass those that are paid for with offsetting tax increases, but will have to study those that aren't.

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