The National Grange supported legislation entitled the Emergency Economic Stabilization Act of 2008, which authorizes the Secretary of the Treasury to establish a Troubled Asset Relief Program (TARP). This program would purchase troubled assets from any financial institution, in accordance with policies the Secretary develops. It also directs the Secretary to establish an Office of Financial Stability, through which TARP would be implemented. The legislation prevents the unjust enrichment of participating financial institutions, including any sale of a troubled asset (with certain exceptions) to the Secretary at a price higher than what the seller paid to purchase the asset.

The TARP legislation establishes a Financial Stability Oversight Board to review and report to Congress on the program assisting American families in preserving home ownership, stabilizing financial markets, and protecting taxpayers. The legislation directs the Secretary to implement a plan maximizing assistance for homeowners and encouraging the financial institutions underlying mortgages to take advantage of the HOPE for Homeowners Program under the National Housing Act or other available programs to minimize foreclosures. Additionally, the bill authorizes the Secretary to use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures. Finally, the bill attempts to minimize any potential long-term negative impact on the taxpayer.

The National Grange supported legislation extending the tax credit for producing electricity from wind and refined coal facilities through 2009. It also extends a tax credit for other facilities, including closed and open loop biomass, solar energy, small irrigation power, landfill gas, trash combustion, hydropower, marine and hydrokinetic renewable energy through 2010. The bill extends the energy tax credit for solar energy, fuel cell, and micro-turbine property through 2016. It also allows a new energy tax credit for combined heat and power system property and allows a new energy tax credit for 30% of expenditures for wind turbines used to generate electricity in a residence and for geothermal heat pump systems. Finally, the legislation extends the tax credit for residential energy efficient property through 2016 and eliminates the limitation on the tax credit for solar electric property. It allows a residential energy tax credit for 30% of small wind energy and geothermal heat pump property expenditures.

National Grange supported legislation that extends: (1) the tax deduction for state and local sales taxes in lieu of state and local income taxes; (2) the tax deduction for qualified tuition and related expenses; (3) the tax deduction for certain expenses of elementary and secondary school teachers; (4) the additional standard tax deduction from gross income for real property taxes; (5) tax-free distributions from individual retirement plans for charitable purposes; (6) the exemption from withholding of tax of interest-related and short-term capital gain dividends received from a Regulated Investment Company (RIC) and the special rule for RIC stock held in the estate of a nonresident non-citizen; and (7) the inclusion of an RIC within the definition of "qualified investment entity" for income tax purposes through 2009.

Several portions of this legislation have a direct impact on agriculture. A provision of the bill extends the suspension of tariff duties on certain wool products; and Wool Research, Promotion, and Development Trust Fund until 2014. Another provision allows accelerated depreciation (i.e., five-year recovery period) for certain farming business machinery or equipment placed in service before January 1, 2010.

The legislation amends several laws requiring a group health plan that provides both medical and surgical benefits and mental health or substance use disorder benefits to ensure that: (1) the financial requirements, such as deductibles and co-payments, applicable to such mental health or substance use disorder benefits are no more restrictive than the predominant financial requirements applied to substantially all medical and surgical benefits covered by the plan; (2) there are no separate cost sharing requirements that are applicable only with respect to mental health or substance use disorder benefits; (3) the treatment limitations applicable to such mental health or substance use disorder benefits are no more restrictive than the predominant treatment limitations applied to substantially all medical and surgical benefits covered by the plan; and (4) there are no separate treatment limitations that are applicable only with respect to mental health or substance use disorder benefits.

The legislation revises the provisions of the Secure Rural Schools and Community Self-Determination Act of 2000 and authorizes appropriations through FY2008-FY2011 to carry out the Act. It also provides for: (1) calculating payments to eligible states, counties, and territories for FY2008-FY2011 and; (2) the making of transition payments for FY2008-FY2010 to California, Louisiana, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, and Washington. It permits eligible electing counties to expend a portion of funds received for the protection, restoration, and enhancement of fish and wildlife habitat, and other consistent resource objectives upon project approval. The bill also sets forth requirements for a merchantable timber contracting pilot program.

The new law prescribes that an amount equal to the annual average of 25% of all amounts received for the applicable fiscal year and each of the preceding six fiscal years from each national forest (under current law, 25% of all moneys received during any fiscal year) be paid at the end of such year to eligible states and counties for the benefit of public schools and public roads in which such forests are situated. It also amends federal law regarding payment in lieu of taxes to provide, for FY2008-FY2012, for each county or other eligible unit of local government to be entitled to payment for entitlement land (certain land owned by the U.S. government).

This legislation makes certain provisions of the Internal Revenue Code providing tax benefits to residents of the Gulf Opportunity (GO) Zone and the Hurricane Katrina disaster areas, including provisions for tax-exempt bond financing, the low-income housing tax credit, an increased rehabilitation tax credit, education and housing tax benefits, employee retention tax credits, and tax-exempt bond financing, applicable to residents of the Midwestern disaster area on a similar basis. It defines "Midwestern disaster area" as an area in which a major disaster has been declared by the President on or after May 20, 2008, and before August 1, 2008, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of severe storms, tornados, or flooding occurring in any of the states of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin. The bill extends tax-exempt bond financing and low-income housing tax credit benefits to the Hurricane Ike disaster area through 2010. It defines the "Hurricane Ike disaster area" as an area in Texas or Louisiana that was declared a major disaster area by the President by reason of Hurricane Ike and that was determined by the President to warrant federal assistance.

Recently, 94 trade dependant businesses and agriculture associations and trade associations wrote to the U.S. Congress asking lawmakers to complete their legislative business this session by firmly rejecting any attempts to reinstate any provisions of the so-called “Byrd Amendment,” formally known as the Continued Dumping and Subsidy Offset Act (CDSOA).

The original CDSOA was enacted in 2000 and provides that antidumping and countervailing duties collected by the U.S. government be diverted from the general treasury to be distributed only to individual companies and groups who supported the antidumping and countervailing duty actions without any systematic verification requirements to ensure that it would be administered appropriately. This “bounty hunter” provision further discouraged negotiations to resolve trade disputes. The provision was originally removed from U.S. law when it was found to be contrary to our nation’s commitments under trade agreements and U.S. law.

“Reinstating the provision would prompt other countries to increase sanctions against our most competitive manufactured and agricultural goods exports at a time when exports are vital to the U.S. economy. In the difficult current economic climate, U.S. exports are about the only bright spot of economic growth, accounting for about 50 percent of economic growth in the last year. Instituting new legislation that invites retaliation against U.S. exports would be counterproductive,” the joint letter explained.

The Agriculture and business groups writing to congress strongly oppose CDSOA, and the facts support their position. For example, CDSOA: (1) has been ruled unconstitutional by U.S. courts; (2) benefits only those few U.S. companies that receive CDSOA money without regard to how they use those funds or whether they are creating jobs, while it undermines the competitiveness of many more U.S. companies and industries; and (3) has been found to violate U.S. international commitments in the World Trade Organization, prompting many of our largest trading partners to impose substantial retaliation against U.S. exports, including agriculture exports.