The $240 billion tax bill passed by the House before the election has stalled in the Senate with little support for passing it this year.

Most of the Senate Republican leadership appeared to favor putting off tax cuts until next year, when they expect to have more leverage to push for enactment of estate and marriage penalty relief.

NACo and other state and local groups had favored the bill because it contained provisions increasing state volume caps on private activity bonds and low-income housing tax credits. The bill exempted arbitrage requirements for school construction bonds. It also authorized major new tax credits for a community renewal initiative, pension and retirement reforms.

As County News went to press, there was discussion of enacting the Medicare reimbursement provisions in the tax bill as a separate bill. NACo supported additional Medicare funds for health care providers. A compromise proposal would also provide more funding for rural hospitals, home health agencies and hospice providers.

There continues to be strong support for repealing the 3 percent telecommunications excise tax. The provision will likely be included in one of the remaining appropriations bills.