Lawmakers Near Deal to Extend Popular Tax Breaks

College Planning Associated Press

Lame duck lawmakers are closing in on an agreement to renew dozens of expired tax breaks for businesses and individuals, including permanent enactment of a generous tax breaks on investments in new equipment and research and development.

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In trade-offs that angered the administration but gave political wins to top Senate Democrats, the emerging pact would also make permanent tax breaks for college tuition, parking and transit subsidies, and a deduction for state and local sales taxes.

Aides say a top Obama administration priority, extending more generous tax credits for the working poor and people with children, was left out.

At issue are dozen of expired tax breaks, known as "extenders" in Washington parlance. They are generally renewed every year or two and have broad bipartisan political backing.