[Congressional Record Volume 153, Number 168 (Thursday, November 1, 2007)]
[Senate]
[Pages S13680-S13681]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               TAX RELIEF

  Mr. ROBERTS. Mr. President, I rise today to discuss several important 
tax relief measures that expire this year.
  As several of my colleagues have noted, these provisions are 
important to many of our folks back home and have a direct impact on 
their daily lives and pocketbook. This tax relief has put more money in 
taxpayers' pockets rather than the government coffers and needs to be 
extended.
  I am pleased to introduce legislation to extend two expiring tax 
relief measures.
  The first measure ensures that we continue to provide a 7-year 
depreciation schedule for motorsports complexes. This is an important 
tax relief provision to hundreds of race facilities across the country, 
both large and small.
  In Kansas, more than 30 tracks can benefit from this depreciation 
schedule. It allows race facilities to make important safety and 
modernization investments under a depreciation schedule that reflects 
the ongoing need to maintain these facilities.
  The largest track in Kansas, the Kansas Speedway, which was just 
completed in 2001, has been the economic driver in the revitalization 
of Kansas City, KS. What was once one of the most economically 
depressed areas in Kansas is now one of the fastest growing. The 
speedway alone contributed more than $150 million to the local economy 
in its first year, creating 3,300 new jobs and generating $10 million 
in property taxes and $26 million in sales taxes.

[[Page S13681]]

  The track has spurred new investment in the area, including a 400-
acre retail and entertainment center that has brought in more than 90 
businesses and 5,500 jobs. Because of this growth, an additional $750 
million in development in the area is underway. The area has become the 
largest tourist attraction in Kansas, bringing in 12 million visitors 
per year.
  As we look at extending tax relief, I hope we will be mindful of the 
tremendous economic benefit that these facilities generate in our home 
States.
  I am also pleased to introduce legislation to extend an important 
charitable giving provision that we initially passed last year as part 
of the Pension Protection Act. This provision allows individuals age 
70\1/2\ or older, who must begin taking distributions from their 
individual retirement accounts, to donate those distributions to a 
charitable organization without incurring tax on the distribution. 
Individuals many donate up to $100,000.
  I have heard from many charitable organizations in Kansas that have 
already seen the benefits of this legislation, including colleges and 
universities, that tell me that many donors are making good use of this 
tax relief provision.
  At the University of Kansas for example, this provision has helped 
generate 94 gifts totaling more than $2.8 million. The gifts have 
ranged from $100 to $100,000--the rollover maximum.
  Smaller colleges are also benefitting. Sterling College, located in 
central Kansas, has an enrollment of 607 students. Last year the 
college raised a total of $2 million dollars in unrestricted gifts. 
More than 10 percent of that amount, $253,000, was raised as a result 
of this provision. In addition, one donor who had previously given 
$1,000, increased her gift to over $80,000 as a direct result of the 
IRA charitable rollover provision.
  This provision has proven to be an important incentive to encourage 
small donors to give, and is an important tool for charities to attract 
new donors. I encourage my colleagues to support an extension of this 
measure.
  I would also like to share my support for two other measures that 
extend expiring tax relief. The first is the deduction for tuition and 
higher education expenses, introduced by Senator Cornyn. I am pleased 
to cosponsor this legislation.
  This deduction is an important benefit for many families who are 
looking for ways to pay for a college education. It allows a deduction 
of up to $4,000 for tuition and related expenses. Nearly 49,000 Kansas 
taxpayers benefitted from this deduction in 2005. Across the country, 
more than 4.5 million taxpayers claimed the deduction.
  We have taken a number of steps in Congress to help families manage 
the cost of a college education. This deduction is another important 
benefit that we need to extend to aid families paying for college.
  In addition, I am pleased to cosponsor legislation introduced by 
Senator Inhofe that extends an important tax incentive for marginal oil 
and gas wells.
  Recognizing the value of oil and gas wells decline over time, the tax 
code allows depletion deductions to recover investments in marginal oil 
and gas wells.
  Under one method of depletion deduction--percentage depletion--15 
percent of the taxpayer's gross income from an oil- or gas-producing 
property is allowed as a deduction in each taxable year. The amount 
deducted generally may not exceed 100 percent of the net income from 
that property in any year. However, this limitation is suspended for 
marginal wells prior to January 1, 2008.
  Extending this provision is critical for marginal wells, which are a 
key source of domestic oil and gas production and create thousands of 
jobs.
  Marginal wells account for 17 percent of the oil produced 
domestically and about 9 percent of natural gas. There are more than 
401,000 marginal oil wells in the U.S. which comprise 80 percent of all 
of the Nation's oil wells. They produced more than 321 million barrels 
of oil in 2005. This production prevented the U.S. from spending an 
additional $16 billion on imported oil. Kansas ranks third among States 
in the number of marginal wells; and fourth in production from these 
wells.
  The number of marginal gas wells has steadily increased over the past 
10 years and production has increased accordingly. Over the past 10 
years, production from the Nation's 288,000 marginal gas wells has 
nearly doubled. Kansas has the largest continuous natural gas reservoir 
in the lower 48 States and ranks eighth in the number of marginal gas 
wells, and second in production from these wells.
  As we look to reduce reliance on foreign oil it is important we keep 
in mind that marginal oil and gas wells are an key source of domestic 
production. We need to maintain existing tax incentives to encourage 
these small producers.

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