Senate Passes $150 Billion Bill for Jobless Aid, Tax Breaks

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WASHINGTON—The U.S. Senate voted 62-36 Wednesday to approve a roughly $150 billion bill that extends a series of tax credits targeted at businesses and individuals.

The legislation includes $70 billion in funding for emergency benefits programs and provides $25 billion additional aid to state governments struggling under budget constraints.

An earlier $15 billion bill that featured a tax credit for employers hiring new workers still requires final Senate approval before it can be sent down Pennsylvania Avenue to the White House for President Barack Obama's signature.

The bill continues several tax credits targeted at both businesses and individuals that had lapsed at the end of 2009, including a popular research and development credit.

It extends through 2010 federal jobless benefits and subsidies to help some unemployed people afford health insurance—two programs that were expanded in last year's economic recovery plan.

Under the legislation, the federal government would transfer $25 billion to states to help them afford rising Medicaid costs. The legislation would also avert a 21% increase in payments to doctors who treat Medicare patients.

The bill also extends a tax break benefiting the overseas income of U.S. banks, as well as narrow tax benefits for a diverse range of industries including timber, retail and film.

Included in it is language aimed at helping work-place pension plans that were heavily affected by collapse in global financial markets in 2008.

Some tax breaks for individuals are also included, such as the state sales tax deduction and a deduction for teachers' out-of-pocket classroom expenses.

The continuation of the tax credits are offset by savings elsewhere in the federal budget, but the extended aid to the unemployed, state governments and doctors are not.

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