By Stephen K. Cooper, Washington Staff Writer

The Senate Finance Committee on January 27, 2009, approved by a 14-9 margin its portion of an $825 billion economic stimulus bill, the American Recovery and Reinvestment Act of 2009, and potentially boosted the total cost to nearly $900 billion after agreeing to include a one-year patch for the alternative minimum tax.

The $69.8 billion AMT fix is not offset and some Democrats hope its inclusion could possibly serve to mollify Republicans who have complained that the package contains too much spending.

Senate Finance Committee Chairman Max Baucus (D-Mont.) has been under intense pressure to include more Republican proposals and he made good on some of those, tacking on several modifications to the legislation before presenting it to the Committee. Those changes included loosening net operating loss carry-back requirements, extending the deferred business tax debt repayment period from four years to eight, and expanding credits for broadband development and hybrid electric plug-ins. Bank acquisitions lost a tax break as Baucus restricted the utilization of Sec. 382 rules for transactions occurring after January 16, 2009. The provision raises approximately $7 billion in revenue.

In his opening statement, Baucus had urged members not to delay in moving the bill in a timely fashion. "Congress needs to act quickly and in a unified fashion to address the economic woes in this country," he said. Committee members initially offered over 216 amendments to the Chairman's Mark, but the panel eventually considered less than 30, approving none except the AMT patch.

Senator Robert Mendendez (D-NJ) had earlier filed a different version of an AMT amendment, but he modified his amendment to be identical to the Grassley amendment. The economic stimulus bill passed last week by the House did not address the AMT.

The stimulus package in its present form faces an uncertain future though, as President Barack Obama has been unable to convince Republicans that the massive spending measure will provide the quick, short-term stimulus the economy needs. Republicans have countered with ideas of their own, but Democrats in the House passed their own measure without Republican input or votes.

Related items:

White House Stands Firm on $500 Tax Credit in Economic "Stimulus" Package

Obama, House Democrats Unveil $825 Billion Economic Stimulus Bill

Lawmakers May Deliver Small Business Tax, Pension Relief Before Year-End

Congress Passes Tax Extenders as Part of Bailout Bill

Posted February 16, 2009.