Senate Passes Tax Extenders, Pension Funding Relief Bill

On Wednesday, the Senate passed, 62-36, the American Workers, State, and Business Relief Act of 2010, which includes a one-year extension of $31 billion of expired tax provisions and funding relief for pension plans.  Included in the tax extenders are two provisions of interest to the construction industry.  The first would extend the 15-year shortened cost recovery period for restaurant improvements and new construction, and retail and leasehold improvements.  The second is an extension of the railroad maintenance credit, which provides short-line and regional railroads with a tax credit equal to 50 percent of the cost to maintain their tracks. The measure also includes limited funding relief for multiemployer pension plans, offering a longer 30-year amortization of investment losses incurred in 2008 and/or 2009. The bill now returns to the House, where the chamber is likely to request a conference with the Senate to resolve differences, according to newly appointed Chairman of the House Ways and Means Committee Sander Levin (D-Mich.), whose panel is also expected to consider a small business tax relief and infrastructure bill next week.