Senate Democrats are committed to making the American Dream affordable again for middle-class families struggling with the rising cost of living, including gas prices that are at an all-time high, and a shrinking job market The Renewable Energy and Jobs Creation Act of 2008 (H.R. 6049) proposes tax incentives for the development of alternative energy solutions and important tax cuts for America's working families with real savings on college tuition, state and local sales taxes, and business investments for individuals and companies alike. In addition, the Senate substitute to the bill prepared by Chairman Baucus that was due for consideration in the Senate today would have provided critical relief for over 21 million American middle-class families who will be subject to the alternative minimum tax this year unless Republicans allow the Senate to act to protect these families

Given the chance to vote on this legislation, however, Bush Republicans voted no. By obstructing progress on this bill, Senate Republicans and their leadership, including Senator McCain, continue to back President Bush's failed economic policies of the last seven years that have led to the squeeze on our hard-working families and have driven up the price of gas by 177 percent.

This Fact Sheet provides a sample of the national and state-by-state benefits that Senate Republicans blocked today.

To help hard-working Americans cope with skyrocketing costs and decreasing incomes,theRenewable Energy and Jobs Creation Act of 2008 would have extended billions of dollarsin tax cuts for millions of individuals and families, including the:

Tuition Deduction ($2.56 billion). To mitigate the impact of rising tuition costs on students and their families and to provide an incentive for individuals to pursue higher education, H.R. 6049 would extend the above-the-line tax deduction for qualified education expenses. Over 4.4 million families take this deduction, which totaled $10.7 billion in 2005. This $4,000 deduction gives the average family a tax cut of $1,120. The deduction is reduced to $2,000 for couples filing jointly with incomes between $130,000 and $160,000.

State-by-state benefits are available here.

State and Local General Sales Tax Deduction ($1.7 billion). To continue to provide similar federal tax treatment to residents of states that rely on sales taxes rather than income taxes to fund state and local governmental functions, H.R. 6049 would extend the option of deducting state and local sales taxes in lieu of deducting state and local income taxes. Over 11.1 million families take this deduction, which totaled $17.5 billion in 2005. This deduction provides equity for taxpayers in states that have no state income tax: Arkansas, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.

State-by-state benefits are available here.

Teacher Expense Deduction ($204 million). Over 3.4 million families take this deduction, which totaled $850 million in 2005. This $250 deduction provides tax relief to teachers who buy school supplies for their classrooms.

State-by-state benefits are available here.

Child Tax Credit ($3.1 billion). The child tax credit provides tax relief for millions of families. This legislation would increase the credit for families who lose a part of the credit due to inflation.

State-by-state benefits are available here.

To help maintain and create jobs and help to keep America competitive in the global economy, theRenewable Energy and Jobs Creation Act of 2008 would have extended billions of dollars in tax cuts forU.S. businesses, including extension of the:

Research and Development Credit ($8.8 billion).For tax year 2008, 27,265 businesses would use this credit. The following states have the most companies that benefited from the R&D credit: California, Florida, Illinois, Massachusetts, Minnesota, New York, Ohio, Pennsylvania, Texas and Wisconsin. Based on 2001 data, the following sectors would enjoy the greatest benefit from the credit: Computer and electronics manufacturing, chemical manufacturing, information services, computer systems design and related services, and scientific R&D services. The Senate substitute proposes to increase the R&D credit's Alternative Incremental Credit.

State-by-state benefits are available here.

New Markets Tax Credit($1.3 billion). Since its inception, the U.S. Department of the Treasury has made 294 awards of new market tax credits (NMTC) totaling $16 billion. To encourage investment in economically underdeveloped areas throughout the country, this creditpermits taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated Community Development Entities. In 2007, the Treasury allocated $3.9 billion in NMTC, and in 2008, the Treasury will allocate $3.5 billion in NMTC. Following are the top ten states that benefited from NMTC, in order of the number of dollars invested: California, New York, Ohio, Maine, Wisconsin, Missouri, Massachusetts, Kentucky, North Carolina and Washington.
15-year Straight-line Cost Recovery for Qualified Leasehold Improvements and Qualified Restaurant Improvements ($5.4 billion). Many restaurants and leased real properties are owned by partnerships. In recognition of the fact that leaseholds and restaurants have shorter lives than industrial and commercial structures in general, H.R. 6049would extend the special 15-year cost recovery period for qualified leasehold and restaurant improvements. Absent an extension of this provision, the cost recovery period for these facilities would be 39 years. The data for accelerated recovery for leasehold and restaurant improvements is not specifically listed in IRS data. However, approximately 2.8 million partnerships filed tax returns in 2005. These partnerships took $71 billion in deductions for depreciation. In 2005, 63,939 partnerships in the food services and drinking places sector filed tax returns. These partnerships took $1.77 billion in depreciation.

To promote investments in green technologies that would generate manufacturing, construction and installation jobs and to protect against fossil fuel supply disruptions and price fluctuations, theRenewable Energy and Jobs Creation Act of 2008 wouldhaveextended and expanded renewable and energy efficiency tax credits, including:

Renewable Production Tax Credit.Expiration of federal renewable energy tax credits could lead to the loss of about 76,000 jobs in the wind industry. H.R. 6049 includes an extension of the wind power credit, as well as a longer-term extension of the credit for renewable electricity produced from other sources, including biomass and geothermal. (Navigant Consulting, Inc., 2/2008)
Solar Energy. The U.S. solar industry employs 20,000 Americans. This number is projected to triple with a long-term extension of the solar tax credit. The Navigant Consulting study estimates that 40,000 solar jobs will be lost without extension of the solar credit. H.R. 6049 would implement a six-year extension of the solar credit for businesses and individuals. The Senate substitute proposes to extend this credit for eight years.

•Plug-in Electric Drive Vehicle Credit. Toencourage further investments in advanced technology vehicles,H.R. 6049 would establish a new credit for each qualified plug-in electric drive vehicle placed in service during each taxable year by a taxpayer. The base amount of the credit is $3,000.

Biofuels. In 2007 alone, U.S. biodiesel production displaced an estimated 20 million barrels of petroleum. H.R. 6049 would implement a one-year extension of the biodiesel credit.
Efficiency. In the United States, buildings are responsible for 38 percent of CO2 emissions, 40 percent of energy use, and 70 percent of electricity use. H.R. 6049 includes a five-year extension of the credit for energy-efficient commercial buildings, and a one-year extension of the credit for improving efficiency of existing homes.
Clean Energy Bonds. Clean Renewable Energy Bonds (CREBs) were enacted in the Energy Policy Act of 2005 to give non-taxable entities federal incentives for clean-energy projects. The CREBs program spurred over 700 new wind, biomass, solar, and hydro projects, and more funding is needed to advance new projects and H.R. 6049 includes $2 billion in new CREB allocations.

State-by-state benefits are available here.

State by State Benefits of the Renewable Energy and Jobs Creation Act:
Tuition and Fees Deduction

	# of Families	Deductions ($ millions)
United States	4,475,610	10,736
Alabama	51,315	126.3
Alaska	14,185	26.5
Arizona	88,024	163.8
Arkansas	23,978	52.9
California	571,515	1083.6
Colorado	65,939	174.9
Connecticut	87,023	207.1
Delaware	14,384	35.4
D.C.	10,638	29
Florida	204,624	434.3
Georgia	122,152	295.1
Hawaii	18,745	42.5
Idaho	22,283	43.5
Illinois	226,131	557.3
Indiana	85,755	213.6
Iowa	47,704	113.7
Kansas	47,946	100.4
Kentucky	42,646	105.4
Louisiana	47,007	108.1
Maine	16,026	40.4
Maryland	115,412	281.8
Massachusetts	121,063	317.9
Michigan	170,851	417.5
Minnesota	104,500	271.1
Mississippi	25,226	57.4
Missouri	81,712	189.3
Montana	13,639	33.1
Nebraska	30,080	62
Nevada	32,624	58.4
New Hampshire	22,221	60.7
New Jersey	166,941	444.8
New Mexico	28,868	47.8
New York	326,557	867.1
North Carolina	113,951	241.9
North Dakota	9,824	22.4
Ohio	162,974	425
Oklahoma	45,511	91.5
Oregon	59,958	132.1
Pennsylvania	182,943	498.1
Rhode Island	17,600	43.1
South Carolina	48,766	120.5
South Dakota	10,299	24.9
Tennessee	61,399	452.3
Texas	303,181	690.5
Utah	37,981	81.2
Vermont	9,678	26
Virginia	133,856	312.9
Washington	105,602	227.3
West Virginia	19,073	43
Wisconsin	96,604	226.1
Wyoming	8,696	14.7

Source: IRS Statistics of Income Division

State by State Benefits of the Renewable Energy and Jobs Creation Act:
Sales Tax Deduction

	# of Families	Deduction ($ millions)
United States	11,149,087	17,565
Alabama	97,287	146
Alaska	24,477	20
Arizona	284,095	475
Arkansas	52,631	99
California	1,208,854	1,963
Colorado	119,472	171
Connecticut	77,613	67
Delaware	1,109	1
D.C.	5,036	4
Florida	2,200,685	3,062
Georgia	151,269	211
Hawaii	23,253	21
Idaho	39,067	51
Illinois	379,192	597
Indiana	42,523	58
Iowa	50,335	42
Kansas	68,566	101
Kentucky	54,567	51
Louisiana	90,666	243
Maine	16,129	11
Maryland	58,511	52
Massachusetts	66,190	51
Michigan	215,867	245
Minnesota	76,411	85
Mississippi	79,287	110
Missouri	92,287	133
Montana	1,225	1
Nebraska	33,400	38
Nevada	346,612	574
New Hampshire	3,293	2
New Jersey	268,317	255
New Mexico	35,259	48
New York	391,715	520
North Carolina	138,849	171
North Dakota	14,867	14
Ohio	129,804	174
Oklahoma	67,369	98
Oregon	4,319	7
Pennsylvania	169,066	209
Rhode Island	15,564	18
South Carolina	70,312	74
South Dakota	58,868	79
Tennessee	574,393	1,229
Texas	2,056,678	3,668
Utah	51,419	78
Vermont	8,584	7
Virginia	95,063	86
Washington	910,648	2,000
West Virginia	10,694	14
Wisconsin	71,052	68
Wyoming	46,338	63

Source: IRS Statistics of Income Division

State by State Benefits of the Renewable Energy and Jobs Creation Act:
Educator Expenses

	# of Teachers	Deductions ($ millions)
United States	3,404,193	850
Alabama	46,343	11.5
Alaska	7,961	2
Arizona	64,878	16.1
Arkansas	26,454	6.6
California	320,721	80.8
Colorado	52,280	12.6
Connecticut	53,699	13.5
Delaware	10,522	2.6
D.C.	5,010	1.1
Florida	178,655	45.2
Georgia	115,214	28.8
Hawaii	15,213	3.7
Idaho	14,324	3.4
Illinois	150,848	37.5
Indiana	63,145	15.5
Iowa	35,895	8.8
Kansas	34,363	8.4
Kentucky	40,695	9.9
Louisiana	46,812	11.8
Maine	17,938	4.4
Maryland	72,639	17.9
Massachusetts	94,577	23.7
Michigan	112,277	27.9
Minnesota	58,541	14.1
Mississippi	30,881	7.8
Missouri	66,253	16.4
Montana	10,684	2.6
Nebraska	22,702	5.6
Nevada	23,665	6
New Hampshire	20,419	5
New Jersey	139,205	35.6
New Mexico	23,750	6
New York	264,817	68.2
North Carolina	105,489	25.9
North Dakota	6,900	1.7
Ohio	128,999	31.3
Oklahoma	38,706	9.8
Oregon	33,556	7.9
Pennsylvania	151,250	37.3
Rhode Island	16,642	4.2
South Carolina	47,505	11.9
South Dakota	9,147	2.3
Tennessee	59,820	15
Texas	284,555	72.7
Utah	22,152	5.3
Vermont	9,754	2.4
Virginia	94,166	22.8
Washington	63,961	15.9
West Virginia	16,902	4.3
Wisconsin	66,846	16.3
Wyoming	6,463	1.6

Source: IRS Statistics of Income Division

State by State Benefits of the Renewable Energy and Jobs Creation Act:
Child Tax Credit

	# of Children
United States	13,072,472
Alabama	235,305
Alaska	23,530
Arizona	343,777
Arkansas	150,334
California	2,047,154
Colorado	181,708
Connecticut	87,585
Delaware	28,760
D.C.	20,916
Florida	756,898
Georgia	431,393
Hawaii	49,676
Idaho	83,664
Illinois	512,442
Indiana	261,450
Iowa	99,351
Kansas	122,881
Kentucky	166,021
Louisiana	226,155
Maine	37,910
Maryland	156,870
Massachusetts	143,798
Michigan	393,482
Minnesota	155,563
Mississippi	164,714
Missouri	247,070
Montana	36,603
Nebraska	66,670
Nevada	118,960
New Hampshire	20,916
New Jersey	261,450
New Mexico	121,574
New York	720,295
North Carolina	430,086
North Dakota	19,609
Ohio	422,242
Oklahoma	179,093
Oregon	155,563
Pennsylvania	409,169
Rhode Island	37,910
South Carolina	202,623
South Dakota	31,374
Tennessee	267,986
Texas	1,539,941
Utah	138,568
Vermont	20,916
Virginia	227,461
Washington	235,305
West Virginia	79,742
Wisconsin	180,400
Wyoming	19,609

Source: Center on Budget and Policy Priorities, 5/19/2008

State by State Benefits of the Renewable Energy and Jobs Creation Act:
R&D Credit

	# of Businesses	Industrial R&D activity ($ millions)	R&D as % of GDP
United States		204,250	1.88
Alabama	1,296	698	0.54
Alaska	16	30	0.09
Arizona	985	2,711	1.46
Arkansas	317	262	0.35
California	5,741	45,618	3.18
Colorado	1,450	4,168	2.21
Connecticut	838	6,442	3.65
Delaware	500	1,490	2.86
D.C.	34	93	0.17
Florida	2,392	2,974	0.50
Georgia	1,724	2,226	0.71
Hawaii	86	122	0.29
Idaho	171	635	1.61
Illinois	2,064	9,506	1.90
Indiana	615	4,327	2.04
Iowa	416	1,029	0.99
Kansas	403	1,832	2.05
Kentucky	513	650	0.55
Louisiana	332	278	0.17
Maine	154	331	0.86
Maryland	856	2,452	1.20
Massachusetts	2,478	10,788	3.70
Michigan	2,111	16,548	4.98
Minnesota	1,028	6,053	2.92
Mississippi	164	147	0.22
Missouri	704	2,523	1.33
Montana	58	71	0.28
Nebraska	463	400	0.64
Nevada	277	365	0.37
New Hampshire	445	1,351	2.75
New Jersey	1,424	12,902	3.36
New Mexico	775	278	0.49
New York	2,213	8,819	1.02
North Carolina	907	5,051	1.65
North Dakota	84	410	1.95
Ohio	1,415	5,445	1.38
Oklahoma	165	401	0.39
Oregon	1,014	3,223	2.64
Pennsylvania	2,310	8,640	1.97
Rhode Island	238	1,340	3.51
South Carolina	624	1,364	1.16
South Dakota	219	66	0.25
Tennessee	387	1,150	0.57
Texas	2,641	11,579	1.31
Utah	1,264	1,036	1.37
Vermont	130	388	1.69
Virginia	1,230	2,683	0.92
Washington	1,229	9,555	4.09
West Virginia	51	205	0.47
Wisconsin	1,358	2,660	1.38
Wyoming	33	29	0.12

Source: Ernst & Young LLP/R&D Credit Coalition, 4/2008(2005 data).

State by State Benefits of the Renewable Energy and Jobs Creation Act:
Bond Authority Allocation

	Amount ($ thousands)
United States	379,267
Alabama	7,698
Alaska	677
Arizona	9,412
Arkansas	3,921
California	48,404
Colorado	5,440
Connecticut	3,346
Delaware	801
D.C.	1,180
Florida	20,271
Georgia	13,322
Hawaii	1,129
Idaho	1,468
Illinois	14,790
Indiana	7,944
Iowa	3,356
Kansas	3,459
Kentucky	6,148
Louisiana	7,677
Maine	1,704
Maryland	5,563
Massachusetts	6,579
Michigan	12,275
Minnesota	4,229
Mississippi	5,861
Missouri	6,764
Montana	1,314
Nebraska	1,714
Nevada	2,669
New Hampshire	749
New Jersey	6,076
New Mexico	3,562
New York	28,328
North Carolina	11,444
North Dakota	718
Ohio	14,287
Oklahoma	5,573
Oregon	4,475
Pennsylvania	14,082
Rhode Island	1,304
South Carolina	6,425
South Dakota	924
Tennessee	8,950
Texas	37,781
Utah	2,381
Vermont	482
Virginia	7,020
Washington	6,528
West Virginia	2,833
Wisconsin	5,676
Wyoming	554

Source: IRS Statistics of Income Division