WASHINGTON -(Dow Jones)- The U.S. Senate voted 62-36 Wednesday to approve a roughly $150 billion bill that extends a series of tax credits targeted at businesses and individuals.

The legislation includes $70 billion in funding for emergency benefits programs and provides $25 billion additional aid to state governments struggling under budget constraints.

The House will either have to take up the Senate legislation or lawmakers from both chambers will have to meet to iron out differences between their versions of legislation.

Senate Democrats sought to portray the legislation as the second plank of their jobs agenda as they pursue a number of different measures to spur job growth in the gradually recovering U.S. economy.

An earlier $15 billion bill that featured a tax credit for employers hiring new workers still requires final Senate approval before it can be sent down Pennsylvania Avenue to the White House for President Barack Obama's signature.

The bill continues several tax credits targeted at both businesses and individuals that had lapsed at the end of 2009, including a popular research and development credit.

It extends through 2010 federal jobless benefits and subsidies to help some unemployed people afford health insurance--two programs that were expanded in last year's economic recovery plan.

Under the legislation, the federal government would transfer $25 billion to states to help them afford rising Medicaid costs. The legislation would also avert a 21% increase in payments to doctors who treat Medicare patients.

The bill also extends a tax break benefiting the overseas income of U.S. banks, as well as narrow tax benefits for a diverse range of industries including timber, retail and film.

It extends incentives for business investment in recovering disaster areas, including the U.S. Gulf Coast.

Included in it is language aimed at helping work-place pension plans that were heavily affected by collapse in global financial markets in 2008.

Some tax breaks for individuals are also included, such as the state sales tax deduction and a deduction for teachers' out-of-pocket classroom expenses.

The continuation of the tax credits are offset by savings elsewhere in the federal budget, but the extended aid to the unemployed, state governments and doctors are not.

(Updates with cost estimate of the legislation from the Congressional Budget Office.)

WASHINGTON -(Dow Jones)- The U.S. Senate voted 62-36 Wednesday to approve a roughly $150 billion bill that extends a series of tax credits targeted at businesses and individuals.

The legislation includes $70 billion in funding for emergency benefits programs and provides $25 billion in additional aid to state governments struggling under budget constraints.

The nonpartisan Congressional Budget Office said later Wednesday that the net impact on the deficit from the legislation would be $98.6 billion over 10 years after budgetary savings proposed by the bill were taken into consideration.

The House will either have to take up the Senate legislation or lawmakers from both chambers will have to meet to iron out differences between their versions of legislation.

Senate Democrats sought to portray the legislation as the second plank of their jobs agenda as they pursue a number of different measures to spur job growth in the gradually recovering U.S. economy.

"Extending these tax cuts and the critical safety-net programs in this bill will give businesses the tax certainty they need to move forward and families the support they need to make ends meet," Sen. Max Baucus (D., Mont.), the chairman of the Senate Finance Committee, said after the vote.

An earlier $15 billion bill that featured a tax credit for employers hiring new workers still requires final Senate approval before it can be sent down Pennsylvania Avenue to the White House for President Barack Obama's signature.

The bill continues several tax credits targeted at both businesses and individuals that had lapsed at the end of 2009, including a popular research and development credit.

It extends through 2010 federal jobless benefits and subsidies to help some unemployed people afford health insurance - two programs that were expanded in last year's economic recovery plan.

Under the legislation, the federal government would transfer $25 billion to states to help them afford rising Medicaid costs. The legislation would also avert a 21% decrease in payments to doctors who treat Medicare patients.

The bill also extends a tax break benefiting the overseas income of U.S. banks, as well as narrow tax benefits for a diverse range of industries including timber, retail and film.

It extends incentives for business investment in recovering disaster areas, including the U.S. Gulf Coast.

Included in it is language aimed at helping work-place pension plans that were heavily affected by collapse in global financial markets in 2008.

Some tax breaks for individuals are also included, such as the state sales tax deduction and a deduction for teachers' out-of-pocket classroom expenses.

The continuation of the tax credits are offset by savings elsewhere in the federal budget, but the extended aid to the unemployed, state governments and doctors are not.

Six Republicans voted with the Democrats in favor of the tax credit bill. One Democrat - Sen. Ben Nelson (D., Neb.) voted against the legislation. In a statement, Nelson said he opposed the measure because it would have added more than $100 billion to the federal budget deficit.

- By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com

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