WASHINGTON, D.C. – With the Senate Finance Committee’s passage today of a package to extend expired tax incentives, U.S. Sen. Sherrod Brown successfully advocated for several Ohio priorities including tax credits to invest in schools, research and development, and low-income communities.
“Tax credits have the ability to lift Americans out of poverty, help rebuild our schools, and invest in our communities,” said Brown. “It’s promising that the Finance Committee moved today to extended and expand these important priorities for our state. If enacted these tax credits will give companies the opportunity to fund research, give families access to affordable housing, and build up our schools and communities.”
The Finance Committee today considered bills to extend and support several critical tax credits. Specifically, Brown supported amendments to:
- Rebuild America’s Schools: The Qualified Zone Academy Bonds (QZAB) program helps schools serving low-income students repair and renovate their facilities at a reduced cost. As part of the Senate Finance Committee’s markup, Brown introduced an amendment to reduce the private sector capital school districts need to raise in order to qualify for QZABs. Brown’s amendment would ensure a greater number of schools have access to this program, which reduces or eliminates the burden of interest payments for schools financing large, capital projects. Brown previously introduced legislation, the Rebuild America’s Schools Act, which included this provision and would also enhance and extend permanently the QZAB program, which has helped finance over $130 million in school projects in Ohio over the last decade.
- Invest in Teachers: Brown supported an amendment to index the teachers’ tax deductions to inflation and allow it to be used for professional development opportunities like training and education.
- Expand the New Markets Tax Credit: The New Markets Tax Credit (NMTC) helps low-income communities attract investment for economic development projects. The amendment would index the program to inflation.
- Expand Low-Income Housing Tax Credit: The Low-Income Housing Tax Credit (LIHTC) helps states rehabilitate and construct rental housing for low-income families. The amendment would index the program to inflation.
- Invest in research and development. The Research and Development (R&D) Credit encourages innovation and allows companies to deduct the expense of research, development, and hiring of workers to conduct R&D. The legislation that passed Senate Finance today will allow more small businesses to take advantage of the R&D credit.