Senate Democrats and Republicans rejected each other's efforts to advance job creation tax packages in a pair of votes on July 12.
Democrats introduced legislation that would extend 100 percent bonus depreciation for 2012 and provide a credit equal to 10 percent of the amount an employer increases 2012 wages over 2011 wages (up to a maximum credit of $500,000). Republicans countered by offering House Republican legislation (H.R. 9) as a substitute amendment. The House bill, approved by the chamber in April, would provide a 20 percent deduction against income of businesses with fewer than 500 employees.
The Republican amendment was tabled in a 73–24 vote. The bill then needed 60 votes to advance and was blocked 53–44. A substitute amendment from moderate Sen. Mary Landrieu, D-La., was also rejected, 57–41, with 60 votes needed to advance. It included several other tax incentives meant to help businesses, including extensions of the exemption from gain on qualified small business stock, increased Section 179 expensing limits, expanded credit carrybacks and shorter holding periods for built-in gains tax for S corporations.
While both parties support some of the provisions, like 100 percent bonus depreciation, lawmakers have not expressed interest in negotiating a compromise package. Legislation appears unlikely until after the November elections.
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