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Sec. 936 wage tax credit would extend beyond 2006 in Senate Finance-approved tax bill.

Executive Summary

SEC. 936 WAGE TAX CREDIT WOULD BE RETAINED PAST 2006 under the Senate Finance Committee version of the small business tax incentive bill (HR 3448) passed by the committee June 12. The bill would allow companies claiming the wage-based possessions tax credit to continue to receive the credit as under current law until 2002, up to 60% of a cap defined in the bill through 2006 and up to 40% of the cap thereafter. The income-based Sec. 936 credit would be eliminated after Jan. 1, 2006.

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