The Senate approved a corporate tax bill Oct. 11 with measures expected to increase the Highway Trust Fund revenues by $24 billion between FY 2005 and FY 2010. The Senate passed H.R. 4520 69-17. The House passed the measure 280-141 Oct. 7, and President Bush has indicated he will sign the bill into law. The legislation replaces the current 5.2 cents per gal ethanol motor fuels tax incentive with a General Fund tax credit, fully compensating the Highway Trust Fund for ethanol fuel use. The tax bill permanently redirects the revenue stream from 2.5 cents per gal of the ethanol motor fuel excise from the federal General Fund to the Highway Trust Fund. The measure also includes provisions to combat fuel tax fraud.
"The provision alone will create 674,000 new jobs across the country," said Senate Finance Committee Chairman Charles Grassley (R-Iowa). "In addition to overhauling the excise tax system that is outdated, we crack down on big-time fuel fraud to make sure that bad guys are not robbing our states of their much-needed highway money."
H.R. 4520 also would provide several tax incentives for businesses and manufacturers in the transportation construction industry. It would create a 9% tax deduction on all domestic manufacturing activity for C and S corporations, partnerships, sole proprietorships, cooperatives, estates and trusts. The bill also would allow small businesses in our industry to immediately expense up to $100,000 of new investments through 2007.
