WASHINGTON — After weeks of political wrangling, Congress finally put the Unemployment Compensation Act of 2009 to bed. The bill now goes to President Obama, where he is expected to sign it into law.
The bill has two consumer-friendly provisions, including an extension of unemployment insurance for 20 weeks and an extension of the soon-to-expire first-time-homebuyer tax-credit program until Apr. 30.
However, it also caters to U.S. businesses that have been scarred by the recession. A provision to extend net-operating-loss carrybacks from two years to five for businesses of all sizes will pour $34 billion back into corporate America’s coffers, according to a study done by the National Bureau of Economic Research.
The unanimous vote in the politically fractured Senate came about because both Republicans and Democrats got something they wanted out of the bill, policy analysts say.
Republicans backed the net-operating-loss extension because it was heavily supported by the business community. Both sides pushed for an extension of the homebuyers’ tax credit, and Democrats strongly favored an extension of unemployment insurance benefits.
To read the complete story in Business Week, click here.