Tax Break for Bringing Jobs to U.S. Heading for July Vote

Senate Democrats plan a vote next month on a proposal to give a tax break to companies that bring jobs and investment to the U.S and deny a deduction for those moving jobs out of the country.

The bill, sponsored by Debbie Stabenow of Michigan, will probably reach the Senate floor after lawmakers return from their July 4 recess, said Adam Jentleson, a spokesman for Senate Majority Leader Harry Reid, a Nevada Democrat.

Stabenow’s legislation may serve as a counterpoint to proposals in the Republican-led House of Representatives. Speaker John Boehner of Ohio has said the House will vote in July to extend for one year the expiring tax cuts on income, capital gains, dividends and estates.

Reid hasn’t said if or when the Senate would vote on expiring tax cuts. If Congress fails to act by the end of the year, taxes will go up on more than 80 percent of U.S. households.

Stabenow’s bill would give companies a 20 percent tax credit for the expenses incurred in bringing jobs and investment to the U.S. It would deny companies a deduction for the expense of moving investment out of the U.S.

President Barack Obama has supported similar legislation and included it in his budget.

The bill is S. 2884.

To contact the reporters on this story: Richard Rubin in Washington at rrubin12@bloomberg.net; Kathleen Hunter in Washington at khunter9@bloomberg.net

To contact the editor responsible for this story: Jodi Schneider at jschneider50@bloomberg.net

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Michigan Senator Debbie Stabenow

Scott Eells/Bloomberg

Senator Debbie Stabenow.

Senator Debbie Stabenow. Photographer: Scott Eells/Bloomberg