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Reid bill could advance tax-cut proposal

Senate Majority Leader Harry Reid (D-NV) speaks to reporters after a Democratic Caucus meeting on Capitol Hill in Washington on December 7, 2010. The Democrats met to discuss the current tax bill going through congress. UPI/Kevin Dietsch
Senate Majority Leader Harry Reid (D-NV) speaks to reporters after a Democratic Caucus meeting on Capitol Hill in Washington on December 7, 2010. The Democrats met to discuss the current tax bill going through congress. UPI/Kevin Dietsch | License Photo

WASHINGTON, Dec. 11 (UPI) -- A bill introduced by U.S. Senate Majority Leader Harry Reid, D-Nev., contains environmental provisions that could soothe angry liberals, officials said.

Reid's bill does little to change the deal between President Obama and Senate Republican Leader Mitch McConnell of Kentucky, but it includes an ethanol tax credit and an extension of a cash grant program for the renewable energy industry, The Hill reported.

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The provisions might be helpful in winning the support of wavering liberals needed to pass the president's deal with Republicans to extend tax cuts for all Americans, while also extending unemployment benefits for another 13 months.

White House press secretary Robert Gibbs said the provisions were "important" and supported by the White House.

Reid's amended bill includes tax credits for biodiesel and renewable diesel, energy-efficient homes and alternative fuels, and a 30-percent investment tax credit for alternative vehicle refueling properties.

Reid has scheduled the first vote on the new package for Monday, but Sens. Bernie Sanders, Ind-Vt., and Jim DeMint, R-S.C., said they would filibuster it.

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