Bill offers businesses tax breaks, lending

WASHINGTON -- The Senate last week passed a bill offering $12 billion in tax breaks and $30 billion in lending for small businesses.

Democrats framed the bill as a component of their jobs and recovery agenda, estimating it could create 500,000 jobs over time. Republicans, who stalled the bill earlier this summer, challenged the measure as a bailout similar to the 2008 bank rescue.

The bill passed, 61-38. Two Republicans, George Voinovich of Ohio and George LeMieux of Florida, broke ranks and voted for it.

Under the legislation, community banks could tap into a $30 billion low-interest loan fund if they increase lending to small companies.

The bill also would allow small businesses this year to write off half the cost of their investments in new equipment and deduct the cost of health insurance for themselves and their families.

Sen. Harry Reid, D-Nev., voted for the bill. Sen. John Ensign, R-Nev., voted against it.

Repeal of paperwork rule fails

Senators failed to repeal or relax a new paperwork requirement that had drawn the ire of small businesses.

Sen. Mike Johanns, R-Neb., proposed repeal of the regulation, which was created through the health care reform bill earlier this year. It requires businesses, starting in 2012, to file a 1099 tax form to the government for each vendor receiving more than $600 in a given year.

Supporters of the new regulation said it would help the IRS chase tax delinquents. Critics said it would put a big paperwork burden on companies.

Johanns' amendment drew opposition from Democrats after he proposed to offset its cost by reducing funding for preventive-care programs, and by limiting the mandate that individuals must carry health insurance by 2014 or face fines.

The amendment failed, 46-52. Ensign voted for it, while Reid voted against it.

Florida Sen. Bill Nelson proposed a Democratic alternative. It would have exempted businesses with fewer than 25 employees from the regulation, and raised the reporting threshold from $600 to $5,000. Nelson proposed to pay for the change through a tax increase on large oil companies.

The amendment needed 60 votes to advance but fell short, 56-42. Reid voted for it. Ensign voted against it.

Bill expands energy loans

The House voted 240-172 for a new program that would make loans available for small utilities and homeowners to carry out energy improvements.

The bill by Rep. James Clyburn, D-S.C., authorizes $5 billion over five years. One component would provide loans to finance home renovations that promote energy efficiency. Homeowners with income over $250,000 would be ineligible.

The second component offers no-interest loans to rural utilities for upgrades.

Democrats said the bill would create jobs for home builders and construction workers. Republicans said it would only duplicate other federal programs that promote energy efficiency.

Reps. Shelley Berkley and Dina Titus, both D-Nev., voted for the bill. Rep. Dean Heller, R-Nev., voted against it.

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760.