Story Published:
Oct 3, 2008 at 9:42 AM PST
Story Updated:
Nov 21, 2008 at 2:18 AM PST
WASHINGTON (AP) - A financial rescue plan approved by Congress will allow Washington state residents to continue deducting state sales taxes on federal income tax returns.
The bailout bill includes a plan to extend a program that pays rural counties hurt by federal logging cutbacks. And it extends tax credits for renewable energy such as solar, wind and hydropower, as well as biomass and geothermal electricity.
Senators inserted the timber provision as one of several sweeteners to attract more votes for the bailout bill, which was defeated earlier this week in the House. The House approved the revised version of the bill on Friday, two days after the Senate.
The timber provision was especially welcome in the West. Lawmakers from both parties have been trying for years to renew it.
The law provides hundreds of millions of dollars to Oregon, Idaho and other states, mostly in the West, that once depended on federal timber sales to pay for schools, libraries and other services in rural areas. In all, payments go to 700 counties in 39 states.