[Congressional Record Volume 148, Number 7 (Tuesday, February 5, 2002)]
[Senate]
[Pages S321-S322]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          THE STIMULUS PACKAGE

  Mr. DORGAN. Mr. President, I'd like to talk a moment about several 
items I think ought to be included in the economic recovery package.
  One, I have filed an amendment that would provide for a 5-year 
extension of the wind energy production tax credit. We really must get 
that done. Regrettably, this credit was allowed to expire at the end of 
last year. As a result, many lenders have stopped providing financing 
for new wind energy projects. Wind development projects underway have 
come to a screeching halt.
  Extending the wind energy production tax credit would provide an 
immediate boost to the economy. We have a lot of projects on the books 
that aren't moving because the credit expired. A long-term extension 
will jump-start development activity, create jobs and help this country 
meet its future energy needs. Each new wind turbine placed into service 
creates about $1 million in economic activity.
  I would like to make the wind energy production tax credit permanent. 
My proposal today would extend it for 5 years. Clearly, a shorter term 
extension will not provide developers the certainty and stability they 
need to plan and finance new wind energy projects. I think Congress 
must act quickly to ensure the availability of the wind energy tax 
credit over the long term. If we don't act now, many wind energy 
initiatives will be scrapped at a time when this country can least 
afford it.
  Second, I intend to offer and have filed an amendment to permit 
companies that have recently suffered net operating losses to carry 
back those losses for 5 years for federal income tax purposes. I will 
not go into a lengthy description of why we ought to do that. But my 
amendment should provide some needed financial help for those companies 
that have been hurt most during the current economic downturn. It will 
increase cash flow for many of these firms and help them make payroll, 
avoid additional layoffs and, hopefully, encourage new hiring. It will 
also help them to make investments in equipment and machinery they need 
to rebuild, grow and prosper.

  There is bipartisan support in both the Senate and the House of 
Representatives for net operating loss carry-back relief proposals. We 
ought to include in a 5-year net operating loss carry-back provision in 
the economic recovery package.
  Finally, I've filed an amendment that would provide tax relief for 
many S-corporations that sell ``built-in'' gain assets and reinvest the 
proceeds from those sales back into their companies. Today, there are 
hundreds of thousands of firms that operate as S corporations that 
would have a huge tax impediment if they were to sell certain 
appreciated business assets. The taxes they would be required to pay on 
that gain, even if they reinvest it, would be prohibitive. As a result, 
many S-corporations are forced to keep these assets--even if they are 
no longer productive and could be converted into assets that generate 
new growth and jobs.
  The amendment I filed today would allow those who are involved in 
these S-corporations to sell built-in gain assets without facing a 
massive federal tax bill, provided they reinvest the proceeds into the 
business within a two-year period. That, too, is stimulative.
  Many of these companies are the job-producing companies in this 
country.

[[Page S322]]

To allow them to sell less productive assets and reinvest into more 
productive assets will be very stimulative to this country's economy. 
It will produce jobs and economic growth and opportunity. But they are 
locked out of that at the present time by the Tax Code. My amendment 
proposes to change that result and I hope we will get an opportunity to 
consider it during the debate on the economic stimulus package.
  One final point: The Kyl amendment, of which I am supportive, dealing 
with tourism is an amendment to which I want to offer a second-degree 
amendment dealing with loan guarantees. It would cost $200 million or 
$300 million over the 10-year period. It deals with a subject about 
which I have spoken with Senator Kyl and Senator Reid.
  Many of the businesses connected to the airports and the airlines 
that were shut down post-September 11 are in desperate condition. A 
program of loan guarantees dealing with the most fragile of those 
businesses which were shut down through no fault of their own--through 
edict by the Federal Government--would be appropriate in those unusual 
circumstances and would be guaranteed by an amendment attached to the 
Kyl amendment.
  I hope to be able to offer that as a second-degree amendment dealing 
with travel agents, car rentals, and others attached to airports which 
suffered just as much as the airlines did when the airlines were 
ordered to be shut down and there was no travel anywhere in the country 
for a specific period.
  As I indicated, I noticed the previous amendments yesterday. I wanted 
to indicate that I would be prepared to offer a second-degree amendment 
to Senator Kyl's amendment.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from New Jersey is recognized.

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