The Senate is scheduled to take-up the economic stimulus bill (H.R. 5410) this afternoon, Feb. 6, based on a package that passed the Senate Finance Committee with bipartisan support. It would surpass the cost of the House’s bill by roughly $40 billion. Lawmakers are hoping to pass a stimulus bill before Congress begins a week-long recess on Feb. 16.

The House-passed bill, with an estimated $146 billion price-tag, gives individuals rebates of $600, with an additional $300 for each child. High-income individuals would be gradually phased-out, beginning with those who earn between $75,000 and $87,000, and low-income individuals would get a portion ($300) of the rebate, as long as they earned at least $3,000 in 2007.

The Senate proposal—estimated to cost roughly $200 billion—gives individuals $500, with an additional $300 for each child. High-income individuals would be gradually phased-out between the $150,000 and $160,000 mark, and low-income individuals earning more than $3,000 per year, including veterans and Social Security benefits income, would be eligible for the full rebate. The Senate Finance Committee version prohibits Members of Congress from receiving a rebate, and clarifies that illegal immigrants are ineligible.

The House bill includes increased loan limits for the Federal Housing Administration (FHA) from $362,000 to $729,750, as well as increased limits for Fannie Mae and Freddie Mac, from $417,000 to $729,750. The Senate Finance Committee agreement does not have such a provision, but one is expected to be included in the final package voted on by the Senate.

Both the House and Senate Finance Committee versions include a restoration of the bonus-depreciation write-off—although Senate negotiations are still underway on whether or not this will make the final cut—which would allow firms to deduct 50 percent of the purchase price of manufacturing facilities and other capital equipment in the year it is put into service. Additionally, small business would be given an immediate, but temporary, increase on Section 179 expensing up to $250,000—doubling the current level—on new and used equipment.

The Senate Finance Committee version includes an extension—from the two years in current law to five years—on net-operating-loss carryback, which would allow business owners to offset one year's losses against another year's income. The package also would provide $5.5 billion in tax breaks to boost renewable energy incentives, extend unemployment insurance benefits, and expand the tax-exempt mortgage revenue bonds that states can offer to help fund low-income housing and low interest mortgages by $10 billion over the next three years.

In the past week, debate over the bill, its contents, and the procedure to amend and vote on the bill has been contentious, with Senate Minority Leader Mitch McConnell (R-Ky.) seeking to eliminate the provision that would give rebate checks to individuals based on their veterans and Social Security benefits income. Senate Majority Leader Harry Reid (D-Nev.) has rebuffed this request—implementing a procedure called “filling the tree” to block any amendments from Republicans—and will instead push for a vote on the Senate Finance Committee agreement with the inclusion of House-passed FHA, Fannie-Mae and Freddie-Mac language and an additional $1 billion in low-income heating assistance.

With several moderate Republicans already supporting the measure, Senate Finance Committee Chair Max Baucus (D-Mont.) expressed confidence that his Committee’s proposal would garner the requisite 60 votes. The Republican leadership in the Senate has been critical of the proposal and the process, however.