Daily Tax Update - June 16, 2005

SENATE MAJORITY LEADER BACKS $284 BILLION HIGHWAY BILL:
During yesterday’s highway conference committee deliberations, Senate Majority Leader Bill Frist (R-TN) said that he supports the level in the House bill of $284 billion. Frist said, "I have told the conferees yesterday and today that I expect, representing leadership, a bill at the $284 billion level."

  • Other Senate conferees have indicated a willingness to compromise on the funding level, but House leaders are standing firm in their opposition to any bill costing more than the level in the House-passed bill.
  • The Vice Chairman of the Conference, Sen. James Inhofe (R-OK) said, "We are planning a meeting of the Senate conferees and we're going to arrive at a number and offer it to the House. I can't tell you what that number's going to be. It'll be open."
  • If the conferees are not successful in resolving their differences before the end of the month, it will be necessary to approve another highway funding extension bill.

TAX BILLS INTRODUCED JUNE 15:

  • H.R. 2904 sponsored by Rep. Robert Andrews (D-NJ) would allow a credit against the income tax for an owner of a radio broadcasting station which donates the license and other assets of such station to a nonprofit corporation for purposes of supporting nonprofit fine arts and performing arts organizations.
  • H.R. 2911 sponsored by Rep. Eric Cantor (R-VA) would modify the active business definition under section 355.
  • H.R. 2924 sponsored by Rep. Alcee Hastings (D-FL) would reduce motor fuel excise taxes during periods of high fuel prices.
  • S. 1253 sponsored by Sen. Norm Coleman (R-MN) would allow a credit to holders of qualified bonds issued to finance certain rural development projects.

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE
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