Congressman Cole Votes for Tax Break Extension Package

WASHINGTON – Congressman Tom Cole voted today for the Tax Relief and Health Care Act of 2006 (HR 6111) that includes two tax extensions to help spur economic activity on Indian reservations and on former Indian lands. This legislation, which passed in the House, is especially beneficial in Oklahoma.

"These two provisions encourage economic growth in our state and create new jobs for all Oklahomans," Congressman Tom Cole said. "The accelerated depreciation provision in particular is worth hundreds of millions of dollars to our state."

The first provision (45A) provides tax credits to employers of Native Americans and their spouses. The second provision (168j) provides 40 percent faster depreciation schedules for capital assets placed in service on former Indian lands in Oklahoma. Both provisions are extended through the end of 2007.

The Tax Relief and Health Care Act of 2006 prevents physician payment cuts in 2007 by freezing payment rates for physician services. It also provides a 1.5 percent bonus-incentive payment to physicians who report on quality measures. H.R. 6111 also provides a one-year extension of the process to allow patients to apply for additional physical, occupational, and speech language therapy services if the patients treatment exceeds the annual cap.

"I have received many phone calls and letters from Oklahomans who were very concerned about these two provisions and the fact that they were set to expire in January. I am pleased that we were able to address this issue before time ran out," Congressman Cole said.

The following provisions were included in the Tax Relief and Health Care Act of 2006. This legislation extends through 2007, provisions which either expired at the end of 2005 or will expire at the end of 2006:

· The above-the-line deduction for higher education expenses.

· The Research and Development Tax Credit

· The treatment of combat pay as earned income for purposes of the earned income credit calculation.

· The above-the-line deduction for out-of-pocket teacher classroom expenses.

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