century tax code. that task is going to be harder if these incentives disappear now. ambassador of raucous is going to do an extent -- outstanding job in china teamed up with senator hatch and built a strong foundation for comprehensive reform. they held an extensive series of hearings and put out option papers in the majority staff publish several discussion drafts. the draft on energy had a number of good ideas in how to move from stop and go policies to smart integral parts of the tax code chairman campbell will be much missed when he retires at the end of this congress has worked hard in the house and introduced the conference of bill. all have offered some fresh innovative ideas and it's a safe bet that when the next comprehensive reform becomes law it is going to draw extensively from their proposals. this spring i'm going to start

holding hearings on fixing a broken tax code and building a new system that works in today's global digital economy. on tuesday we are going to have a hearing on how to protect taxpayers from incompetent and fraudulent repairs. now there are other issues like identity theft and taxpayers rights that we will have to examine. senators nelson and harden have put a lot of time and effort into solving these challenges in this committee will need to take a hard look at the issues surrounding multiemployer pension plans in order to protect americans hard-earned benefits. this bill takes a first step and i intend to work with my colleagues to do more. today we have got to belmont short-term needs with long-term goals in the bill before us today does that. senator hatch and i agreed to start trimming, to start reconfiguring the overgrown extenders. after president reagan signed

the 1986 tax reform act into law there were only 14 provisions they carried expiration states so we have got a lot of heavy lifting to do to fix the tax code. when the committee put this package together we said no to some things and we reform some others. i hope they can all be on the same page today and be sparing with amendments. in closing i would like to thank senator hatch u.s. been so cooperative with me on this and other matters. senator hatch and i have said a number of times this committee has always been run in a bipartisan fashion and i know on our watch we will continue to do that. senator hatch. >> thank you mr. chairman and i'm proud of you and the effort you are putting forth. you certainly have open arms and we appreciate it very much. we appreciate all of our colleagues on this committee. this is a great committee. before i give my opening statement that would like to take a moment to express my

deepest sorrow for those who lost their lives and injured in yesterday shooting at ft. hood. i think all of our hearts and prayers go out to these folks and what they have been through. it was a senseless tragedy and we will never fully understand why these things happen but i know we all feel very much the same about that. i just hope that those who are badly injured will have a full recovery. mr. chairman thank you for your nice statement. you are one of the true policy wonks of the senate and i mean that in the most complimentary form. you have billing -- been willing to work with both sides and your work on tax reform it's been very interesting to me. i'm looking forward to working with you. >> thank you. >> you want to take a moment to

express appreciation to you so that you know that we will appreciate working with you. we are going to have to work together and we are going to have to work together on preparing and executing this markup but we have worked together in preparing for it and yes there are things i wish were different but that's the way it is right now. standard legislation is always hard to move. it comes with a lot of moving parts and competing interests. throughout this process we have both worn to the hats. you have worn 1/2 representing the interests of the 13 democratic numbers of the committee and also donned the head of the senior senator from oregon. likewise i have worn one hat as i have represented the concerns of all the republicans on the committee and another the senator from utah. they both represent everyone on this community. in a sense we have been brokers of the diverse interests of all

the members of this committee. as it often does compromise has led to some outcomes that were not optimal for you or for me. like i said it hasn't been easy. at the outset of this process you and i released a joint mark that released a starting point for tax extenders and attacks extended debate. i was pleased with the mark. we made difficult choices in the process of reaching the agreement but i believe we are moving in the right direction. the last time we marked up a tax incentive package was 2012. the bill you reported that time represent roughly 25% reduction in the number of expiring tax provisions. i remember then the chairman didn't think we could do that but we did by reducing the number of extenders we were sick in many acting to eliminate wasteful and really distorted decisions in our complicated tax code. the mark were released earlier

this week continued in the same fashion by further reducing the number of extended tax provisions. that is a direction i believe we should be moving. obviously the mark will be amended today is different from the giant mark we released earlier this week in the final product we will be voting on at the end of this markup will likely be different. i expect the committee will report a final tax extenders package today probably with bipartisabipartisa n support. however the substance of that package is going to be determined. that being the case it is difficult right now to say where any of us will come down from a vote on final passage but that shouldn't take away from the deliberative process that are distinguished chair has utilized in putting this together. you deserve a lot of praise for how this has gone so far. as most of you know over the last few years i've been repeatedly to cry the tears and the border here in the senate. i believe it is viable that the

senate committees fulfill their responsibilities and especially chairman of financial committee which has someone important issues under jurisdiction. regardless of the final vote tally of believe the finance committee is doing its job with regard to the tax extenders legislation. in addition to regular order in a vibrant committee process i believe we need to restore real debate to the senate. that makes a robust discussion of the issues on boats and married various amendments. as we have seen this week on the floor the senate that type of real debate is in short supply these days. that said i believe we will see a real debate on the finance committee today that we are going to talk a lot about a lot of different issues. i suspect the discussion will be spirited at times. we are going to have a number of votes on amendments some of which may be difficult both for individual members. this is a good thing and it's how the senate is supposed to offer. i want to commend you once again

mr. chairman for pursuing this process and i want to thank our colleagues on the finance committee republicans and democrats for their participation in the process thus far. >> thank you senator hatch and i know we will work closely together throughouthroughou t the morning and in the days ahead. i would like to now recognize other senators in order of seniority who would like to make opening statements and i would just ask senators to keep their statements to know more than four minutes. senator stabenow. >> thank you mr. chairman. i will keep brief but let me thank you again. it's wonderful seeing you in that chair and thank you for working so hard with everyone on both sides of aisle the aisle to put together what we hope and i understand from your words will be the last tax extenders markup we want to do conference of tax reform and this will be a step in doing that. this really is when we look at all these policies is about jobs and economic development and is

so important we get get this all the way to the finish line. i want to specifically highlight the mortgage debt relief program and thank you for having this in the bill. this is the top rarity for millions of families as you know who are struggling to stay in their homes despite the improving housing market. we know a lot of people are under water in their mortgages. i know it's certainly true in michigan. they owe tens of thousands of dollars more than what their home is worth now. they're sitting down with their lenders and trying to work out agreements to get up to date but we are in a situation where unbelievably for the first time since the housing crisis began if we don't act and if this doesn't get all the way through the congress the irs will tell the same family sitting down right now doing their taxes while they are also trying to find mortgage relief at their bank that they are going to have

to pay more taxes as they refinance and count as income debt forgiveness from their lender. it's even more -- when we think about the fact that we have banks that are now required to provide relief to homeowners to write off their costs. on the one hand the bank gets to write up the relief that they are providing to a homeowner but the homeowner right now without the change that we are making wealthy paying more taxes. it makes absolute no since when the one side wall street bank gets it tax break for 2 million middle-class families are left with the big tax bill. i just want to thank you for including this mr. chairman and also mentioned very briefly i am very pleased we are able to reach agreement to extend refueling infrastructure for alternative vehicles. i'm hopeful we are going to have

an agreement today on the energy-efficient homes and buildings initiatives in renewable energy reduction tax credit and with so many things that are important here in the bill let me thank you for including a bipartisan effort on conservation easements, their research and development tax credit and at new markets tax tax credits so thank you very much mr. chairman. you senator stabenow. senator roberts is next on the other side and i want to recognize him. he has done some awfully good work on some of these provisions. >> thank you mr. chairman. i wants to congratulate you like every other member will be congratulating you. the people of wichita kansas are not very much aware but will be aware soon you were born in wichita kansas before moving onto that other state out west and we are very proud of you and i am personally very proud of you and i've been working with

you on an awful lot of other matters including the intelligence committee. i have an opening statement which is probably the best statement i could make. >> thank you and i've always appreciated your thoughtfulness. let's go next in order of seniority. our next speaker would be senator cantwell. >> thank you mr. chairman and thank you for holding this hearing and for talking about these important issues for individuals in our state. bipartisan effort today here is to ensure predictability and certainty that will help grow our economy. before i start i would like to say something about the communities in arlington washington. these communities have been through a very painful process facing one of the worst disasters our state has seen and i want to thank all my colleagues for their comments and support on this issue. in the future we would like to join our colleagues who are on

this committee who have also dealt with natural disasters in the discussion of how natural disasters impact as this is in some of the things we can do to help provide for relief. my neighbor one priority here is to make sure that we are continuing to support economic growth in the united states of america and job creation and many of these provisions which expired in 2013 are important to just that. the majority of these provisions provide incentives for business investment and return to taxpayers which in turn increases local spending and aids our economy. the state and local sales tax seduction is of particular importance to my state and to texas wyoming florida south dakota nevada alaska and tennessee and while we would like to make this permanent in the parity with other states i know that my other colleagues senator thune nelson cornyn and enzi agree with me so we will be offering something to make that

permanent. i'm glad we at least continuing that deduction since it lapsed in 1986 and we brought it back in 2004. a 24% of americans who claim state and local tax seduction's shouldn't constantly have to question whether they will be able to make that deduction. i am pleased we are moving forward but we have to be even more aggressive on this issue. i also want to comment on the extending tax provisions that are also helping our economy grow the wind production tax credit to low-income housed credit the bio diesel tax credit the veterans work opportunity tax credit are indeed. all of these things are so essential for businesses to have two basically leverage further private sector investment. businesses plan ahead so that means they need to certainty to do so. for example investing in low-income communities between

2003 and 2010 cost the federal government five point -- $5.4 billion but generated $45 billion in investment and a leverage of approximately eight to one. to me those are the things we should be doing to help our economy. the veterans work opportunity tax credit another success story giving employers who hire veterans a tax break. it's helped companies in my state hire veterans and help them get a workforce. the bio diesel tax credit lapsed and the last time it lapsed a resulted in a 42% drop in production in 2010. leading to a loss of between $879 million in real gdp and job of household income in. to me mr. chairman these are real issues about real investment strategies and

nothing could be more important i think right now than a bio diesel market that helps us in our huge competitive nature with getting a new aviation jet fuel. we are very close to having a drop in jet fuel that will help the united states of america continued to be competitive in aviation manufacturing and aviation in general but this is exactly why we need certainty and predictability. i also want to mention a low-income housing tax credit which also has been leveraged and fills a gap. i will have a lot more to say about the solar tax credit what i think is germane to this legislation but i see my time has expired and again thank you for giving this bipartisan tax measure and to senator hatch to get this before the senate. >> thank you senator cantwell. senator and c. is next. >> thank you mr. chairman and i appreciate the work you have done on tax reform. i look forward to working with

you on that. glad to hear your statement that this will be our last tax etc. package. this up off-again on-again cycle of extenders creates too much uncertainty for businesses. some of them are willing to take a risk and maybe they will get the credit if we extended and others don't do what needs to be done waiting to see if we are going to take action. it's difficult for individuals and businesses and i think we need to gain more ground and get these extenders done permanently. members on both sides of the aisle introduced legislation reforming the tax code. i hope you take a look at the bill to reform the united states tax rules written up and also a bill that would allow us to get the dates for reporting so people don't have to keep revising their income tax forms to make it fairer and simpler.

i know none of that fits in with this but again i look forward to working on that and particularly working on any transitions that we might need as we do the tax corrections. some of those tax corrections if they are made overnight will bankrupt individuals and companies so we need to make sure we get a smooth transition so it's fair to the individuals as well as the country. >> thank you senator enzi and i am pleased you are already starting to raise the importance of the importance of comprehensive comprehensive reform and we are going to work closely with you. senator nelson. >> mr. chairman at the gift for you. i will insert my comments in the record. >> oh my god. special blessings. >> and i will thank you and senator hatch for what is so desperately needed in the united states senate which is a bipartisan approach. >> thank you senator nelson.

senator isakson. >> thank you very much mr. chairman i will add my congratulations to you and my appreciation for the openness in which you have approached this entire process. i want to especially thank senator hatch for his comments in the days leading up to this markup. it's been enlightening for me and helpful and i appreciate his leadership. i won't take any comment except to say i have received the amendment dealing with real estate investment trust on in this meant by foreign entities. what is some interesting is the real statement investment trust were created by the 1986 tax act and we had intentionally destroyed laws and change the industry for the worse and not the better so your approach in a conference of nature will keep us from doing that next time. my last comment is unconvinced that my solution -- microsolutions or heart of the macrosolutions and hopefully we will get the conference of reform.

>> next to senator cardin. >> thank you mr. chairman. that would also add my congratulations to you senator hatch for the manner in which this legislation is being considered. it's not just a bipartisan manner which is just doing it but individual provisions to see how we will improve them and make them work better to get a better result for the dollars they have spent and that is reflected in the work the two of you have done. i'm proud to be part of that so thank you very much for your efforts. this bill is critically important to our economy and offers more certainty and creates jobs. many provisions that i think are critically important, let me highlight the transit benefits the green energy initiatives the new market tax credits and senator rockefeller's efforts there. the low income housing tax credits. the 9% minimum rate and senator cantwell's work on that this critically important helps all of our communities with conservation easements and

senator stabenow is working on that. these are important improvements in extenders that will help create jobs and help people live healthier lives and help our economy. i want to mention three issues very briefly that you incorporated into the revised markup and i thank you very much for that. section 179t which deals with energy efficiencies in our buildings. yesterday introduced legislation along with some of our colleagues to expand that provision to correct some of the interpretations. i thank you for including the improvements on allocations including non-profits. i hope we will be able to do more than that to include partnerships and deal with retrofitting abilities. we don't quite have the scores on those issues had for the joint tax and i hope i can work with the chairman and members of this committee to further expand the ability to offer the appropriate incentives to make their buildings more energy efficient.

section 181 deals with the theater industry, i want to thank senator isakson and thank senator schumer for his work on that in senator nelson and senator stabenow. we are not only extending that important provision which deals with competition that helps the u.s. preserving create jobs but we are also doing this in a way that expands it to theaters and i appreciate the work that has been done so this could be incorporated into the mark. lastly let me mention the work opportunity tax credit. i particularly want to thank senator portman for his work on this issue to not only take this important bill extended but also to include long-term unemployed. long-term unemployed are difficult for employers at times to take risks to employ and using the work opportunity tax credit which has been very successful proven successful program, to help expand

opportunity in that direction will help a great deal and i want to thank senator warner for his work on that particular bill. i think that is going to grandma's help us deal with the unemployed should -- unemployment issue and i think the chairman and ranking member for, dating back into the revised market. >> thank you senator cardin. you have been doing thoughtful issues since your days in the house and working with senator portman so we appreciate it. >> i do think this is one way to get folks who are long-term unemployed and unfortunately we are seeing historic levels of long-term unemployment, that's over six months in the recession and recovery. this will help us to get some of these folks back to work a weatherwise given the resume gap have a small chance of going back to work based on the data over the last several years so i appreciate the committee working with us on map. i think the chairman and make you member.

the process is transparent and i think the senate would work better if there was more legislation completed this way. senator hatch certainly did so with our site and i know you did with your site. the same time i have to say this is not a process we should go through again and i like the fact that the chairman called this the expire act. temporary tax policy is bad economic policy and is bad tax policy and if it's a tax provision worthy we have to make it permanent and if it's not we have to get rid of it and understand their sticker shock associated with make incorporated these permanent because there could be $750 billion over 10 years but that's the same thing as $75,000,000,000.1 year at a time for the next 10 years which is what we are doing is the chairman indicated. i too think there are economic costs of the way we are doing this. businesses that i talked to are making their decisions over a 10 or 20 or timeframe and if we tell them gosh our credit is

going to be available but may be gone next year they are not going to utilize it. small businesses don't know whether they are going to have a cap of 250 bucks. if they can't depend on these provisions they are not point quite to make as many decisions to create jobs as they should which is the intent of these proposals. it really negates the purpose of what we are doing. i do think this is an opportunity for us to move forward with policies necessary to stay in place but i hope you can move on tax reform as the chairman and ranking member talked about. i'm encouraged that both of them are so interested in that. let's move on to what we ought to be doing. i do think is the chairman said at the outset that the code is too complicated. i do think as we approach april 15 is real for our constituents and i do think we have an opportunity here to come up with a policy that will help to get this economy moving. as one of the few things we can do and i think it's almost

certain to give the economy a shot in the arm. i would say we must do that with the right data and therefore we do need to have macroeconomic analysis of what tax reform means and some call this dynamic scoring. i do hope mr. chairman and ranking member that we will work together on this but also take into account what the actual economic growth consequences are of tax policy as we do that. i look forward to the process today because i do think it is going to be transparent. we will hear a lot of good debater must continue to focus ourselves on making this the expire act rather than extend act. >> thank you senator portman. thank you for making the point about the jobs opportunities with conference of tax reform. in 1986 and two years afterwards or country created 6.2 million new jobs. no one can say everyone of them was due to tax reform but it certainly helped and thank you for highlighting that. senator warner. >> thank you mr. chairman.

as the newest member of the committee i guess i'm glad i get to do one tax extender markup under my belt. >> only one. >> only one, a1 to that end let me echo what senator portman said. as i try to dig into all of these provisions is really hard to look at them as one offs without relationship to the balance of what else is in the code so i would add my voice to the others hoping this is a bridge to more total tax reform. i will be very brief. i just want to echo what the other colleagues have said. i agree with senator cardin on the energy efficiency components and also the residential building standards. i appreciate that. a small provision that we put them in terms of mine safety which would provide additional credit for advances mine safety training and equipment. i appreciate that. i have go with senator isakson

said about for death. we did more of that fdi coming into the real estate sector and senator portman and senator cardin mentioned the work opportunity tax credit in terms of long-term unemployment. as we debate about extension of unemployment benefits the better policy path is how to get folks back to work and this is one small step forward on that. thank you mr. chairman at or at to my first and last extenders marco. >> thank you senator warner. senator grassley. >> obviously i think you and senator hatch were working so hard to put this together and i'm glad we are considering a two-year extension of these provisions instead of the usual one year although last time i guess it was two years. i'm hopeful that this will provide a window of opportunity

albeit small to taxpayers while allowing us to continue our work towards tax reform. the annual stop and start picture of tax extenders creates uncertainty were taxpayers of all stripes and often results in complications come filing season when tax forms are not ready and refunds delayed. it causes headaches for teachers purchasing school supplies, college students paying for higher education and seniors making sure to pull deductions from their i.r.a.. further creates uncertainty for businesses which harms investment and business growth and consequently not getting more people employed. the uncertainty it creates for their noble industry has slowed growth in this sector and serves only to hamper the strides made towards a viable self sustainable renewable energy and fuels sector.

a strong vibrant renewable energy or is good for jobs and economic growth. it's also vital for american security to foster the growth of home-grown fuels and energy. the recent takeover of crimea by russia is a prime example of why this is so important. we do not want to have our hands tied on energy issues and tying up foreign affairs as many in europe have found themselves to do because of their reliance upon foreign sources of energy in that case from russia. two to both and security reasons i am pleased that the chairman included the bio diesel credit in his original mark and has accepted my amendment to extend the wind production tax credit to a modified mark. renewable and alternative energy is not an answer on its own.

there are four critical elements to a comprehensive energy policy obviously the use of oil and gas , promoting renewable energy supporting conservation and nuclear energy. obviously the latter is an ambition free resource. i support a real all-of-the-above approach to energy security. the chairman has expressed his determination that this be the last expire to conference of tax reform. we should consider the relative alternative renewable incentives along with all the other energy provisions. targeting energy provisions for elimination now makes little sense for those of us who want to reduce tax rates as much as possible. tax reform provides an opportunity to use a realistic baseline that will allow the revenue generated from cutting back the provisions that they

use to pay for reductions in individual corporate tax rates. so i look forward to working with the chairman of and the ranking member to an act tax reform and put an end to the headaches and uncertainty created by the exercise we are going through today. right now our focus should be on extending the current expired and expiring provisions to give us room for working toward that goal. >> thank you senator grassley. senator menendez. >> thank you mr. chair and i'm going to join senator nelson and bestowing gifts upon you and hopefully the chairman will remember that as we continue on. just briefly congratulate you again on assuming the chair. secondly on bringing us to a bipartisan beginning here in this markup and for pursuing a two-year extension because certain date is one of the elements of unlocking greater economic attentional and while i

hope the ultimate certainty is the tax reform that we all seek at least an interim having a two-year provision makes a lot of sense. i look forward to offering one or two amendments including with senator toomey to help small business and have a dialogue with my colleagues on ferc to to set a foundation for what i hope to be a success in the future. >> thank you senator menendez and i know you are doing important work and i look forward to working with you. senator toomey. >> i too want to say in a body that is not considering nearly as much legislation as it ought to on the floor and far too committees are not working i commend you for a meaningful substantive open markup. this is exactly what we should be doing and i commend you for that. i think it's unfortunate we are continuing for another two years in this case a very flawed policy of the temporary tax code

and i was encouraged by your insistence that this is the last of them. that is very important. i think of the many items in this list of extenders many of them fall into one of two categories. there is a handful that are unambiguously pro-growth and encourage economic activity without discriminating or distorting economic activity and though should be made permanent. then there are a lot better that are frankly giveaways to favored industries and while one can now is point to a job that is created from a subsidy on balance they cost us jobs because they distort economic activity and make our economy less efficient and we have fewer jobs as a result. we'll have a discussion and debate today and i appreciate that and i look forward to working with you to have the conference of permanent tax reform that we need. >> thank you senator to me. senator carper. >> let me preface my remarks by saying if thanks to you and

senator hatch for practicing what i call the two seats. the secret to a long marriage between two people is to communicate and compromise and the secret to a good democracy is to communicate and compromise and you too are good example for the rest of us. we are grateful for that. when i was a ceo of the dupont company the ceo said part of what to do in terms of providing job creation and preservation for all businesses large and small is certainly predictability and we have heard that again and again from tip democratic's -- democrats and republicans. how are we doing here with respect to tax policy well, compared to what? compared to not doing anything at all for a one-year tax extender? we are doing not as well as we need to do a lot to do.

i know both of you have led before and we have will have a chance do that for real. a couple of amendments. let me say thanks to my colleagues who joined me and cosponsored amendments that i have offered in the package. thank you for letting me join you in offering you amendments but i particularly want to say thanks for including the extension of the investment tax credits with the commencement of construction language. it's important we will have the success of launch in the wind industry in this country. think we can do better and i have a couple of energy amendments that i want to work on with the chairman and ranking member in the future. the first amendment which i've joined the senators brown cardin and menendez my wing man right here on this side of our aisle that extends the investment tax credit to projects in offshore wind that generate the first 3000 megawatts of offshore wind in this country.

this is similar to legislation offered in the last congress with her colleague susan collins and provide certainty to an industry that is just beginning to bubble up in this industry. my 2nd amendment by senators cardin and warning fixes language for the 2000 extenders package by stating waste heat is eligible for investment tax credit. a transforming waste and heat to power reduces emissions searched searched -- saves energy in the long run and is a win win. this technology can perceive investment tax credits is an easy fix and i hope we can do it and finally we need to reform the r&d tax credits. senator portman over there as works with this staff and my staff and have worked very hard to do that. i think we have a good foundation for this bill but private investment in r&d is the lifeblood of the nation we need more of that. ..

>> i think senator isakson

came to the conclusion doing it bigger makes it easier than the little fix. i think that is true with tax reform i appreciate the work you have put into it. look at our tax code would be hard to intentionally as a nation to create a tax cut that is more unfair unfair, complex, expensive to comply with, and frankly more anticompetitive to our own business interests in america than what we have got. the factory to the extender bill is a prime example. we have a lot of good thought that has gone into how to reform the cody and you are one who has put forward that is before a strong proposal and i want to say i look forward to working with you on this legislation that i agree

should be the last extender but of their broader and a much more powerful objective to reform the tax code. we have got to do it and get a right if we cannot let that fall in the? with the dynamics of the gridlock we often find ourselves in the united states senate. i agree on the need to do this the and stand ready to work with u.s. remove for word. >> thank you also for conveying that urges a. -- urgency's. >> thank you for holding this very important marco. first i am very pleased of the wind production in tax credits it is vitally important to to colorado we have 1400 workers of goshawk

war factories we're bringing work for oil offshore to the united states. there rehired 400 workers this year with and other projected to be added by venda of 2014 clearly not just economic growth but for our states. beyond the amendment there are other amendments that are not included using that investment tax credit like solar energy and the other amendment puts the inequity in the tax code to disadvantage the zero americans liquefied natural gas i will but the chairman committee members will work with us to address these issues going for. also glad it has a two-year extension although i join

you to say it is a good thing if it is the last of the extender packages i am glad you said what you said to provide some degree of certainty while we have comprehensive tax reform that is a huge opportunity for this committee and congress. i was one of the leading technology companies to here with a rich doing with education is interesting. with 75 percent of their last 12 months of revenue was derived from products they did not even sell five years ago. that is how fast it has been invented we should have a tax code that reflects 21st century reality that the private sector is engaged instead of a remote historical vision of what

the economy ought to look like. if we need to drive jobs overseas as long as that is the case i am afraid mr. chairman we will continue to see family and come fall rather than rises in this country. democrats and republicans working together have a unique opportunity and responsibility to articulate a set of principles that are focused to the future instead the past. i don't think this is a left or right discussion. it will lobby ec for anybody that has read the history. but it is worth trying and we may manage to surprise ourselves. think you for holding the hearing and i look forward to the discussion today.

>> i want to associate myself with the view expressed with you and drinking never hatch that short term extensions should not be the way to conduct tax policy. what we consider today about necessary does not give certainty to plan our help the economy to grow. queeney comprehensive tax reform so i do give my support to express the sense that comprehensive tax reform should convince next congress and resolve the issue of tax extenders by broadening the tax base in to consult with the chairman of the committee that the baseline is used during reform. it puts the committee on record for the position not

only is it necessary and urgent but to use it as an opportunity to get rid of tax extenders' entirely if something is good tax policy been if it encourages economic growth then let's make it permanent if it doesn't allow it to expire. i want to say i am pleased the bill extends to years the deduction of state and local taxes to make this permit to put non income-tax states like cars on a level playing field. this is the right policy that we continue to pursue. i am pleased with of wind production in tax credits and i have an amendment that speaks to how we move forward on that issue but i appreciate your leadership mr. chairman and the ranking member to work together to

make today's pop markup possible. >> i want to commend the work you have done especially the way you have taken the time to meet with members not just prepare the market but go through a number of priorities. one broadbased going to is the question of uncertainty rise is all the time the matter what party or what state. often people say they may have a policy concern that generates uncertainty but the biggest is about to us and what will happen in here in the congress that has driven as much uncertainty as anything. with the individual uncertainties were concerned that business is have especially small businesses

i hear from them on a regular basis and i want to commend the work done. section 179 expensing making sure that was addressed in the market is important so they can plan better and invest with capital assets second bonus depreciation% -- 50% so when they are planning so the cost of a new asset can it be deducted and they are appreciative of that. working on a provision that allows restaurants and retail establishments for many years they have a longer depreciation schedule that should make sense and we brought it down to 15 but

now has a longer schedule that is a very important provision for retail establishments. just a quick list of priorities from i state of pennsylvania but also for the nation as well senator to be and i have worked on this it is outside the scope and we will address that with that medical device tax is outside the scope but those of us that support it that believes the limits secretion there is a great debate about that but we're looking forward to working with you to address that issue. number three it makes perfect sense for states like pennsylvania that have water ways that move the

user fee increase trust fund that i know we will work on overtime because i know they are not inside the scope one is the adoption tax credit you made it permanent but also refundable. then finally senator brown will talk about these issues but the child tax credit in the earned income tax credit in terms of poverty reducers and benefits i am not sure there is anything better that we can do. >> we will have a discussion about a number of those this morning. >> you are off to a great start i want to thank breaking member how much who

was also off to a great start to recognize the importance of tax relief working so diligently when confident we will see at the end of the process i always felt we should not wait till the end of the year to approve the tax package is a freeze is the economy in place i went to the floor in december to get the package moving senator hatch actually came down to the floor as i was speaking in said if you want to move the package lets work together in a bipartisan way in a committee. that is why we have done with the chairman's leadership period and your leadership and ranking member. [laughter] i am thinking past. not future. [laughter] but that is why we have the product now.

we have been able to work together and look forward to many opportunities in the future of the transportation reauthorization disaster relief important to this committee for are just want to take a moment to thank you for a few items included in the chairman's mark as people though the commuter tax benefit is critical for people love new york 130 people don't own a car and to us meighen's -- mass-transit is as important as cars you get a greater tax and vintage this restores the quality with the new market tax credit

particularly in our older cities the shore via rail tax credits with maintenance and renovation of the short-lived rail system manufacturing companies depend on the short line to get their product to the market a and admiring a rollover that so many retirees count on some of these provisions in the entire package warrant our support business and retirees will pay the price if we don't get them extended by a bipartisan package to hope to get this over the finish line. >> also thank-you to highlight that bipartisanship we see today and the first amendment colleagues that is the issue were roberts amendment it is

important to promote innovation but a few things first. >> apologize for being late. all of us came to the senate to do is the next like what we're doing today. i was just downtown speaking to the defying contribution investment association about what kinds of the news made the to do when this committee in the banking committee throughout the tax code on finding ways to make sure that people can build wealth. i appreciate this provision for this legislation to extend the pension protection act as we pursue this issue.

as americans were hit with higher taxes and the tax relief act expired when someone is involved in a short sale of some one benefits from a principal production to stay in their homes because of the expiration of the tax breaks they are hit with several thousand dollar tax bell we gave them that tax relief in the past it is important we do this we have heard stories of individuals in their states that backed away from the short sale or run into more serious problems that is an important provision. also workers set to lose their jobs and benefits with the health care tax credit to expand at the end of last year to have those tens of thousands of retirees there are delphi workers new york, michigan even those

that are eligible for the trade adjustment assistance language to make sure they get that tax credit 70 percent of the health care cost to offer an amendment to for two years that is fiscally responsible to a permanent solution. the last issue with states like mine and throughout the country we see what happens to that community and laid-off teachers will support more desperate circumstances ears -- circumstances the manufacturing community tax credit build the new market tax credit most have supported what new markets have done for development

and large portions of their state with the community tax credit can make a big difference and the last point i hope in this committee we can work on expansion it does exactly what we have wanted to do for 20 years president reagan called it the best anti-poverty measure and we'd be to extend that to the childless low income workers it gives great incentive to work to help communities toward low-income communities get earned income tax credit into people's pockets that they spend that in those communities that could make a difference particularly in conjunction with the manufacturing tax credit and all the other things we're trying to do. think you very much for the opportunities. >> now we will turn to the extender bell the reform

efficiency act of 2014 i released the bill earlier this week with senator hatch and after that we will consider amendments then vote on whether to report that its fate core vote is not present we will vote when we have a quorum. the chairman's mark of the expiring provisions along with my modification it is so modified and team to inc. the joint committee from taxation has graciously agreed to have a brief description to the modifications please explain the modification. >>. >> first we have the

explanation of the underlying mark then why it entails the modifications and i will go through that then the revenue table that shows the revenue of the chairman's mark as modified the chair of its modification has four provisions the 79 provisions and has a present to value it housing tax credit the second provision would increase the value of the credit to employers from the armed services to one henderson to and could remove dirt -- remove the limitation. also provide modification to the work opportunity tax credit to extend eligibility to long-term unemployed

individuals and the last modification is to make some technical changes to reduce the private business contribution test. the chairman's modification makes 11 editions to a the market and the first is it extends for two years to make modifications by way of changing and updating energy standards with the energy property it would extend the electricity production credit and the depreciation recovery period for two years the and the extent the increase limitation kerry for provision applicable it

allows the enhanced deduction for energy efficient commercial building property and it expands eligibility for persons to design such property and tribal government told. it extends to your section 181 with production expenses and makes the modification and to expand those rules with live stage productions the prior law relating to

dividend interest and royalties paid up from foreign entities. and it provides the senate should undertake comprehensive tax reform with the next congress. the modification provides the three additions to a the market has the effect to raise net revenues of the continuous levy authority granted to the federal government to levy up to 100% of payments to certain medicare providers with unpaid liabilities. it extends the current law due diligence requirements to have similar requirements for the child tax credit and lasted provides the exclusion for certain payments made under the energy policy act of 2005

for non corporate taxpayers. the hope that was quick and clear. >> a land speed record. >> now here to answer questions in the administration official is here as well. as the acting assistant secretary we welcome you do any senators have any questions regarding the modification to pose at this time? >> hearing none known senators can offer amendments. we will go back and forth but i thought it was particularly important to start today with a bipartisan amendment schiller roberts because it goes to the heart of the

question of innovation in our country and let us recognize senator schubert and roberts. he may not be here but offered the amendment. >> we would like to offer -- offer a commitment number would regarding the package to the tax credit. first the one to thank my colleagues for joining me have a good bipartisan group of sponsors of the republican side in addition to myself on the democratic side also to the original bill introduced by three members of this committee senators in the and roberts in itself but kunz was the originator of the idea and deserves a lot of credit for getting this done. everyone on the committee knows there are few tax credits more important to

our economy and more specifically moving the economy forward in research and development tax credit. but there is a problem with that credit italy benefits countries that are low income tax that means only profitable firms can benefit to the fault many small start-ups where so much innovation is occurring as a missed opportunity because a little incentive goes a long way. we know the small start-ups so with minor modifications the r&d credit can provide a boost to help the startup make the leap between big thoughts and new jobs that is what we're offering this amendment with firms with no income tax bill to apply the credit to the payroll tax liability the new innovation

credit of $250,000 it is the small incentive from the government but a huge incentive for the high tech start at. on top of that those getting their feet under them is taxed at the individual level are not left behind either they may be barely profitable but they cannot claim the credit so senator roberts brought the additional provision to the table to ensure the credit can be claimed by this group of taxpayers. glading greasy these proposals as complementary and when taken together they provide meaningful opportunity for firms to get off the ground from their infancy to their adolescence with income-tax liability but not be in a position to claim the credit.

let me conclude by thinking my colleagues as the great bipartisan group of sponsors as collateral as the members of this committee for helping us bring this much needed package closer to reality. i strongly urge the support of the amendment to the great state of kansas senator roberts. >> in the interest of time i did not make an opening statement but i do have one i neglected to ask permission to insert. >> without objection. >> as usual senator schumer has described this bill in detail it is pretty simple to make sure more employees

get more equipment and more exported. they've replicate provisions that pass the house and senate on a bipartisan basis and will remove one of the biggest barriers for small and medium businesses to offset r&d cost and remove the bar provided in section 38 c to reduce taxes that is it. it is real simple a powerful change for small business. so i ask for your support. and i certainly want to thank senator cantwell and senator and sees the mckinny colleagues want to be recognized? >> senator warner.

>> senator schumer was giving credit for those that were involved also senator rubio ray did three versions of this. and what senator toomey is said about pro-growth literally 85 percent is start up businesses and i was an entrepreneur longer than i was a politician this will do a great deal to help start up businesses and i urge the adoption of the amendment. >> any further debate? >> i want to thank senator roberts for coming up with the inclusion of the amt there we have had problems with. albee you're doing is to

extend for big business and it all works the same way. >> if we tried to devise the ideal way to get out of the gate that is what this does it cover like to go to the boat all in favor of the share roberts amendment signify by saying ye. the aye have it. now let's go to the next amendment cynic i don't think these will take a long time but i have been pushing up the expiring provisions this is to get the tax return due date

supply-demand modernized with individuals across the states are required to provide reports to get their taxes done but the dates are all different we did them over a period of time there would be less revisions for people's taxes so i know it is not a traditional extender so i will withdraw the amendment. >> would you like to continue? >> with two straight the mortgage debt relief provision we have been doing this for quite a while to be a temporary provision when we put it in with homeowners

that are experiencing hardships from the bubble to be free from the added burden from underwater mortgages but those were supposed to be temporary. and we have been adding to the national debt by continuing to do this. most of the homes in that category have been taken care. but we have changed the economics to buy houses did we shouldn't do that or encourage people to buy more than what they can afford solid like homeowners to return to the process of normal economic conditions to get the fiscal house in order so the chairman in drinking never i hope they will work with the. >> my understanding is my colleague is not seeking a vote on this at this time? >> that's true.

>> that might be fine for the state of wyoming but coming from the state where there are a lot of mortgages under water there is a different perspective. >> i would join with senator nelson we're talking about people who were not making decisions now but who were caught up in what was happening with the mortgage crisis still trying to work their way out. 28% of the homes are under water michigan 18% george 18% wyoming is only 6 percent for utah 8%. ohio 19. i would urge just remember we potentially have the unfair situation if we don't extend the help right now the banks that are offering those get to write this off on their taxes but

homeowners get a tax bill if we don't extend to this protection for them. it makes no sense for the 2 billion of voters to get a tax bill with the other side of the equation gets the tax write-off of. >> i share many of the concerns that you had expressed of the 28,000 holders of my state face huge unexpected tax bill spee best buy want to join with the comments talking about a high percentage under water in ohio i talk to people with short sales it is already problematic enough with the delay of financing and we have fixed that in many cases from discussions with banks but we don't want to discourage

local real-estate industry when they stopped in their tracks because of that potential tax bill we grow economies by manufacturing and real estate and weapons in the real-estate market but at some point we take this away but it is still slowing housing growth since the committee. >> graciously agreed asking to hold the amendment number three tusis senators soon and i would offer amendment number four to modify section 48 of the tax code

if we incentivized with the most abundant affordable energy which jews call so to take care of the tax advantages that others have i do realize it is not traditional so i will withdraw the amendment and not require a vote. >> thank you. let's go to the cantwell proposal. >> is number three sponsored by myself and my colleagues. today we are here to talk about important tax provisions to create investment in our economy with predictability so it is absolutely essential to figure out market friendly

cost-effective ways to distributed energy and solar projects to require significant time to have workers to become operational. to get there the private sector needs certainty to unleash the innovation piercy a lot of innovation and in 2007 a global investment talked with hundred million dollars with a solar in beating fellow way. they continue to be with market efficiencies wavy to focus on new ideas of cutting edge technology to establish leadership of the create energy technology we need to continue to innovate. to show china advanced with

the worldbeater to attract $65 million in to see a decline of 37 percent with a clean energy investment. 41 develop door transitioned countries for renewable technologies and they are opportunities for u.s. products not just the united states with this older generation here with a lower cost of energy but the west if it helps to remain competitive we must invest more not withdraw investment that is why i worked with my colleagues on a policy to move forward redrafted and amendment that is germane to

the bill today to help us with new construction in several states that would increase the generation of 700,000 new homes at 270,000 megawatts of to a rate one dash generations of rethink this is an important issue to consider. >> thank you. i will be brief there has spent in amendment number one in bipartisan bill senator howler is my co-sponsor and to allow developers to qualify for section 48 provided they have met construction of their projects before expiration is the

requirement makes it difficult to complete projects that to construct for all the reasons that senator cantwell has said it is vital to the competitiveness building the american energy future that this amendment is not germane but i ask you to work with us as we bring these pieces together hopefully included in our work civic both the view are the most forceful advocates of solar power in public life and i will work very closely with both of you with greed energy is in our chromosome i feel very strongly we turn this around

as part of comprehensive tax reform to get as close to parity for all energy sources as possible because we cannot have the effective energy policy in this country. others have subsidies reduced fait que to both of you but this is not the last word of the subject. >> i thank the chairman for a these comments. >> we will look for another the holder. >> to other colleagues want to be recognized of this issue? >> but say i am interested in what you we're doing.

we will keep working together. >> the amendment is withdrawn and senator isakson was speaking as i understand of the mortgage issue as part of the proposal that is the case i'd like to recognize the senator from georgia. >> i will combine both. >> with the pledge to work very closely let's go to a the melendez and senator enzi discussion. >> but the call up that amendment number four. we'll understand the limitations of today's markups so a few of us would

like to speak of the merits with an eye to get this done some time this year the me also ask you this consent for the co-sponsors. >> this amendment foundation has 39 co-sponsors 21 of 24 members of the committee how powerful we believe the change that we seek to a block economic potential. our amendment would implement to encourage equity investment of real-estate. get well jump-start the modernization project and

the ripple effect of this is the door of this. there is no significant job creation proposal that i know one of even the president listed there before as the item has the opportunity to create jobs and what they called for at the time which are why really take? there is broad agreement as corrected drafted discourages foreign investment and agreements this is a legislative opportunity we should take action on. i don't know why to look at

various times with the irs to termination that is a big part of the challenge but in the interim the strong bipartisan support has the nervous about the potential and we have a lot of commercial real estate whose pride in saying is coming to. the tremendous opportunity in the private sector way. to further solidify the commercial market. with that i am pleased to yield to my colleague senator enzi my co-sponsor. >> i would just say there is $2 trillion of commercial real-estate loans about two richer know they're under water and require more

equity to be financed so failure to act will hurt communities all over the country i think we can agree this is the last thing the economy needs to take a passive loss against her and income over $3,000 per year it thank the most every commercial developer of a positive to a negative that created the real-estate investment trust to sell shares to raise equity and reduce the debt. it was because of 25 for 30 years ago but japan went belly up this would be a great increase and diffusion as it has shrugged tremendously to refinance at

the to a trillion dollars of loans to attract good equity into the real-estate market with a minority participation it would be important for this expansion >> i just want to echo this is an important amendment to help jobs to grow the economy most previous recessions this is only 15 part of the reason is they're not building enough for not doing enough on highways or roads and bridges because of the constraints for a growth. it can affect genetically as we work to refine this over the years over the objections and it affects the upstate new york as well. i hope we can get this done.

>> ababa like to be added as a co-sponsor if i could a and i appreciate the amendment. the unemployment rate remains almost twice that as the overall unemployment rate than this is the situation that is going somewhere else a lot of it is sovereign will fund not only way to get foreign investment but a part of the economy that is still struggling. >> i also want to think senator biden does for his leadership with all this support we could work something out of the four. >> just to give him the last word i am strongly interested in this issue

because it is the economic world supplier the construction jobs that ripple all the way to the community so you have my pledge to keep working with you. colleagues please no this is a painful trial because a number of you have perry could ideas that i like solar energy but we said -- there would be rules to the germane nature. >> i want to compliment the senators who are sponsoring a and cosponsoring it could be more investment with improvements or infrastructure to that extent they all work to do that. i commend them all for their hard work and let's see what we can do. >> senator biden does --

senator menendez this is one of those opportunities with bipartisan support with the economic driver that creates jobs to beat the fiscal concerns in the future as relates to the commercial work gauge market supply will withdraw the amendment and the former to the opportunity the next proposal is senator staff and now and then senator bennett, senator nelson senator roberts, senator brown and senator senator toomey. >> but first talking about the amendment number tear i offered with senator brown and roberts i want to make sure we underline the language with the at&t credit's through you mr.

chairman just to make clear we did the living which that the limits we plates that is the annual limit it is not a combined to limit. is that correct? >>. >> this is the amendment that would modify a the provision in terms of investment it is a powerful incentive for business investment to invest as we have tough economic times to benefit from bonus depreciation to have the

minimum tax credits to access capital web we grow the economy it would lift the cap so in any one year be able to have more immediate investments. i will indicate this as a bipartisan amendment with senator brown and roberts and myself rather than ask for a vote to know i would like to have your commitment to work together to make sure those businesses that cannot fully benefit have credits sitting there cantor and those around to invest in the economy and jobs? day miguel appreciate you not offering that today. >> one other item that is of the list that i know is not

germane under the rules but if it was on the list that what we have offered based on a bipartisan legislation to clarify that the general welfare benefits provided by tribal governments are not considered taxable income by the irs. and to be provided things like education and health services and housing. in recent years the principal and consistently has relates to tribal governments and with the guidance from 2012 what we want to do with codify the guidance into the of law.

i am hopeful as we move forward in the process of the floor that we could clarify the guidance and hopefully make it clear the important work being done is not taxed select you to have made a strong case of this. we will follow-up. >> mr. chairman, i thank you. i would call up amendment number one in the effort to highlight for need for parity in the tax code. liquefied natural gas completes directly with diesel fuel for heavy-duty trucks. the federal excise tax on both diesel is set at

24.$0.3 per gallon but yet ellen she has a lower energy content per actual and diesel fuel. the excise tax with lng is 170 percent that of diesel during the time when we have over 100 years' supply of natural gas with wells that have to close they cannot get rid of it fast enough to want to discourage my amendment is simple to ensure parity of the tax treatment of lng the bill we have introduced that is the basis of this amendment would tax lng of the energy content in accordance with that diesel kaolin. furthermore it modifies the

fuel tax credit and it saves to lead million-dollar is. it may be more suited for the highway trust fund. given that i have your support to break up the highway trust fund the chairman and breaking members' commitment to to work with those who want to try to achieve this parity i would be willing to withdraw this until the context of the perfect piece of legislation but i do that with all hope and my colleagues recognized the lack of equity and parity in the tax code this is a wise

move to make to move more and more vehicles away from the soul -- diesel. >> this seems like a no-brainer. takes 1.7 gallons for 1 gallon of diesel but we approach the same amount per gallon. this is something we can fix with the excise tax it is a positive ted million dollars but when we debate the highway trust fund to just a few months so for others to accomplish this. >> you are all being too logical for federal policy i am interested to work with both of you.

>> i will be brief. thank you for the leadership he offered today based on legislation and it is true the reason i got interested is natural gas has been a critical part of colorado's economy. . .

whether it's solar or wind or natural gas been refined petroleum from the middle east or other places. this would help us along those lines so i look forward to working with my colleagues especially senator burr and the chairmen and ranking member to get into the highway trust fund in a discussion to see whether we can fix this inequity and give a shot in the arm to american produced fuel in this case lng. >> senator burr thank you and i plan to work very closely with u.n. senator bennett on the highway trust fund bill which of course is also coming up very quickly. you and i served together on the energy committee and we always said let's try to get to a level playing field and that is what u.n. senator hatch have talked about and then to have comparable measures. i'm going to work closely with you and i appreciate you're not offering it today. senator nelson is back.

>> i applaud the excellent work in the leadership of hatch and wyden and if you are from pennsylvania, utah, to west virginia, you are underrepresented as we are in florida on the new markets tax credit. for example it serves the poor population encouraging investment in low income areas. an example in my state we have 6.3% of the poverty resides in florida in the country and yet our new markets tax credit share is only 2%. those other states are similar that i mentioned. and so what it does this tax

credit is incentivize investment of commercial projects to create jobs in low income areas. and since the program was established back in 2000, $36 billion has been invested in eligible communities and it needs that little tweak to get to the poverty so i want to work with you mr. chairman, senator hatch on tweaking it. thank you. >> thank you senator nelson. we have had excellent success with the new markets tax credit at home and i want to work with you. their other colleagues that want to talk about the new markets tax credit? senator nelson is not asking for a vote today and that takes us to senator thune and senator roberts to discuss a subject that they know there's a lot of interest in and that is the

permanent internet tax freedom bill. >> mr. chairman i would like to call up amendment number three which is committee amendment number 76 and just to speak to this issue. the amendment would incorporate in the bill before us the internet tax freedom forever act which is legislation that is sponsored by you mr. chairman, me and 35 other senators including senators roberts burr isakson and grassley on this committee and essentially what it would do is make herman at the existing moratorium on state and local taxes on internet access as well as multiple discriminatory taxes on internet commerce. i don't intend to ask for a vote on this but i'm raising it to cassette believe it's a critically important issue and an issue that we need to address very soon. the reason for that is the existing tax moratorium known as the internet tax freedom act is due to expire on november 1 of this year. first enacted in 1998, this

moratorium has been extended three times with broad bipartisan support most recently in 2007 when it was extended for seven years. keeping consumer access to the internet free from taxation use of the internet a critical gateway to jobs jobs education health care and entrepreneurial activities and as ranking member of the commerce committee one of my top priorities along with the senator from west virginia is expanding high-speed internet access to burr america a rule that will be impeded if that expires and consumers are burdened with new taxes on internet service. because this has been such a long-standing policy if it expires the vast majority of americans with internet service will like we see taxes imposed on internet access for the first time. that is because their states with laws in place which if the federal moratorium would expire some of those taxes would kick in. that is why i think we need to

move on this extension is in this possible. consumers are like you begin to hear about the possibility of their internet access becoming subject to the tax in the late summer and that is why i think we need to take action before the august recess to provide certainty both two providers as well as to consumers and i think there are other what i would call consumer friendly legislation bills that we need to advance as well when being visual goods and services tax fairness act that you and i mr. chairman introduced which would set the rules of the road for taxing digital downloads and services. as you know it's also a piece of legislation that has been referred to this committee. i want to work with you and with their colleagues on the committee to make it terminate as soon as possible and i want to raise that issue as i said knowing full well perhaps it won't be included in this particular piece of legislation. i know my colleague from you know what to talk about the marketplace fairness act is

something i also support. that is something that came out of the senate that my state has been working on for several years but the thing i will point out about this item is it has a sense of urgency about it as this does expire november. >> let's finish up with the internet tax freedom act because i know later we are going to talk about the marketplace fairness act. i'm happy to do that. did you want to talk about that now? >> mr. chairman i just modify that amendment number three so i could address it and at this point is to point out that this bill does not affect marketplace fairness. this is to make sure people cannot access the internet and and -- tax the internet. it's a states rights bill so products that are sold in other states can collect the sales tax and it's up to the states to do that. i just wanted to make that clarification so we wouldn't get it confused because i don't think the inept --

internet ought to be taxed. i don't want people to think this would preclude marketplace fairness. 17 people on this committee voted for marketplace fairness on both sides of the aisle and it is critical to a lot of the states out there. i want to make sure it was not being precluded but i didn't intend to make it a part of this. >> i think my colleague for his thoughtfulness and he and i know that this is a topic that generates a lot of spirited discussion and we are going to have it in the days ahead. let's have senator roberts and senator hatch on the internet tax freedom act. senator roberts did you want to comment on this? i thought it was a finn roberts amendment. >> i thought senator thune put it very well. >> even better. senator hatch. >> i will be very short too.

if no action is taken come november 1 with the prospect of internet tax increases on internet access. i think the internet is critical to our national economy. the access is vital to ensure americans can participate in the national and global economy. i want to complement you for the work you're doing and i appreciate it. >> senator thune thank you and i have the awkward challenge of essentially saying i is something i was the original author of the 1998. riffs respect to the substance of this matter you had me at hello and we will continue these discussions and senator hatch is right we face an expiration date. this is something we all feel very strongly about. after that original authorization will work together to get it reauthorized and we

are going to get it done and i thank you for that. senator brown is next with manufacturing communities tax credit. >> thank you mr. chairman i call up amendment number seven for a vote. mr. chairman this amendment seeks to provide support for new manufacturing investment in our communities. we all know the numbers over 2,002,010. we lost some 5 million manufacturing jobs with some 600,000 may be that more than that to come back in the four years since. this amendment will help to refine the new tax credit. it will make it simpler in the sense that oftentimes it's fairly expensive for someone in those census tracts for the new market tax credit to find a way to go through the process into manufacturing. i hear all the time time as nl senator portman does from groups like the development coalition

that business wants to invest in communities. they are not sure they can do it to the new market tax credit in the census tracks but that would get them there if they had just a little more help. so i ask for support of the amendment mr. cherry. >> are there other colleagues that would like to be recognized? senator portman. >> this is not an expense because senator brown's amendment is actually paid for by an act from the new americans tax credit that argues. as i recall it is one to 3% of that allocation so it's a relatively small amount targeted to areas where help is needed. it goes to the same treasury agencies so it's not creating a bureaucracy and it goes to the same community development entities that have to be qualified under new markets tax credit. this is a good amendment and i would encourage my colleagues to support it. >> i strongly support it. senator stabenow. >> i would like to ask that my name be added as a co-sponsor

and i indicate my strong support. >> i too support the amendment and i support the offset in the underlying provision. i think it's important to clarify the inequity in the tax code and it's clarified. see all those in favor will say aye. although suppose will say no. the ayes appear to have it. the ayes have it and the amendment is passed. passed by voice vote. the next set of amendments are senator toomey three through nine that i gave there he will not seek a vote on involving the permanent bonus. >> mr. chairman i think what we worked out was that i'm going to discuss two amendments right now. one is number six which would be

making permanent the bonus depreciation which is my intention to offer and withdraw for reasons i will mention that the second would be toomey number three which i intend to bring to a vote so if it's appropriate i will proceed with those. >> please do. >> thank you mr. chairman. the point i want to make with my amendment number six which would make the -- the point i want to make is to distinguish between the several very truly powerfully unambiguously pro-growth provisions we have in this underlying bill and several items many unfortunately which are not pro-growth. the bonus depreciation here are the ones that are powerfully probe growth. it's section 179 for small businesses. the act of finance provision in the cfc. the latter two provisions are a matter of equity and fairness in uniformity in the code. the previous, the first two that

i mentioned are sensible way to achieve the cost recovery that has to happen in one form or another. especially the bonus depreciation is very pro-growth. this encourages investment and are widely applicable. there's no picking up winners winners and losers. we don't favor one industry or activity over another and i think he should be the goals of pro-growth tax policy. the bonus depreciation encourages investment and growth in the u.s. and available to accompany to the extent that investment is made. i think it's very important to point out this is not some kind of a gift. we should look at this as a tax expenditure. this is not a handout. the corporate tax code is meant to apply to net income revenue minus expenses. expenses incurred in purchasing equipment have to be recognized. it's a question of winds at timing matters. it doesn't frankly reduce revenue to the government to do on this depreciation. it delays the revenue and that

delay is not terribly important to the government. it's very constructive to business for cash flow and other reasons. this would create jobs without a doubt. if i think the single best feature in this bill mr. chairman. my understanding is that if i ask for a vote the chair would rule this is nongermane and if i'm correct in that understanding mr. chairman then i will withdraw the amendment. i will urge my colleagues to work with me to try to make this very constructive pro-growth feature permanent as soon as we can. >> the does go beyond the scope of the markup and for that reason it's not germane. >> thank you mr. chair. fica proceeds number three. mr. chairman my amendment number three is the opposite of the one i just discussed. this is the one in my view -- what this would do is strike a number of provisions in which we are simply picking winners and

losers. we are going through economic activities in deciding which it a favorite and showered with gifts from the taxpayers and which should not. this is bad economic policy. it's bad policy and it's not fair. what will i amendment do would strike a few of the most egregious provisions. it would strike the tax credit subsidize companies that produce from politically favored energy and biofuel and renewable diesel. eliminate the credits for electric water cycles and fuel-cell vehicles and eliminate the credits for electric car chargers and other forms of alternative fuel refueling properties. let me be clear. i have nothing against alternative forms of energy. i just think they ought to compete on a level playing field i don't think we should force taxpayers to subsidize an efficient and competiticompetiti ve sources of energy. the provisions we are talking about here will cost almost

$17 billion over 10 years for a two-year extension. this is real money in only mr. chairman that may be lear. these provisions destroy jobs. we can certainly point to individual jobs that are created in any field when we throw money at that area but mommy systematically force our society to pay more for energy than it needs to cost we are wasting money that could otherwise be spent on productive things that could be invested. under some circumstances i understand. under some circumstances when and so it can be competitive in to that extent wonderful. let it turn its own market share but we shouldn't be subsidizing this the way we are. mr. chairman my amendment would strike these provisions. i know it's completely noncontroversial and i assume we will just accept it. >> thank you senator toomey. let's start with senator grassley i believe would like to comment on this. >> i used to be called the father of two wind energy tax credit and now i suppose i'm the

grandfather of the wind energy tax credit. i'm sympathetic to the tax code being too cluttered with tax provisions and that's the reason many of us have been clamoring for tax reform for years now. just because we have it cleaned up the tax code in a comprehensive way doesn't mean we should pull the rug from under our domestic in and renewable energy producers. doing so would cost jobs and harm our economy the environment international security. the wind energy today supports 80,000 american jobs, 7000 in my state of iowa. a tax incentive has spurred $105 billion of private investment since 2005. the proponents of this amendment want to have this debate. it shouldn't be held in a vacuum. we ought to do it with regard for many incentive and subsidies that exist for other sources of

energy and our permanent law. for example this is what i would ask senator toomey to pay attention to because he and i had a private discussion on this yesterday. the 100-year-old oil and gas industry continues to benefit from tax preferences that benefit only their industry. the list i'm going to give you does not include general business tax policies such as tax preferences for domestic manufacturing or also depreciation stuff that we talk about throughout the entire economy. we have expensing for intangible drilling. we have deductions for cursory in jackson's. we have percentage depletion for oil wells, special amateurization for geological costs. these for tax preferences for this single industry results in a loss of more than $4 billion

annually in revenue. nuclear energy is another great example. the first nuclear power plant came on line in 1958. 56 years ago. nuclear receives special tax treatment for interest for decommissioning trust funds. congress created the production tax credit for this mature industry in 2005. quite frankly i've was part of that. it was a bill i helped develop and that is available until 2020. nuclear also benefits from price anderson federal liability insurance. talk about temporary measures becoming permanent, that was a temporary measure in 1958 and it's been renewed through 2025. nuclear energy also has received $74 billion in federal research and development dollars since 1950. now are these crony capitalist

handouts? why is repealing a subsidy for oil and gas or nuclear energy production a tax increase on energy producers and consumers while repealing an incentive on alternative renewable energy is not. this is all part of intellectual dishonest argument. i authored this in 1992 and then we did it we knew it was not going to be forever. it's going to be phased out when it's a mature industry and its getting close to that now. in 2012 the wind energy was the only industry to put forward a phaseout plan but any phaseout must be done in the context, get this, in the context of conference attacks reform are all energy tax provisions are on the table and it should be done responsibly over a few years to provide a viable industry so i oppose the amendment. >> thank you senator grassley. colleagues it's my intent to just keep on going because we

are very close to being able to wrap this up. certainly not much longer than 1:00 is doable to me. senator stabenow let's recognize senators stabenow. senator toomey asked for a recorded vote and that of course is within the rules so senators stabenow. >> i does want to associate myself with senator grassley's comments and also just indicate that we have had special provisions in the tax code since 1916 for oil. they are not hard of extenders. they are not required to be renewed every year or every two years. whenever we talk about picking winners and losers in energy i would argue that congress has picked a winner in the oil industry and they won. but we are trying to do is level a playing field and give other american energy opportunities to be able to compete for home-grown energy here at home

so i would strongly oppose the amendment. >> thank you senator stabenow. a recorded but it's been requested so please call the roll. [roll call] [roll call] [roll call] roe. [laughter] >> thank you senator grassley.