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Wednesday, February 11, 2009

Stimulus: Homebuilder Tax Break "Sharply Curtailed"

by Calculated Risk on 2/11/2009 07:04:00 PM

More good news on the stimulus bill.

From the WSJ: Big Business Loses Out on Tax Break Under Stimulus Deal

A tax break sought by businesses that would allow unprofitable firms to recoup taxes paid in the past five years has been sharply curtailed ...

Sen. Baucus (D., Mont.) said House and Senate negotiators have agreed to limit the tax break to small businesses only. That means large manufacturers, retailers and homebuilders that lobbied for the provision would be shut out under a deal reached earlier today.
Congressional tax estimators said it would have delivered as much as $67.5 billion in tax benefits to businesses this year and next. The provision would have allowed firms to convert 2009 and 2010 losses into tax refunds by carrying those losses back for five years to offset tax liability.
I lobbied hard against both the homebuyer tax credit and the homebuilder tax break, and it looks like both provisions were scaled back sharply.