Despite opposition from the business community, the Senate appears ready to eliminate the federal tax deduction for companies that pay punitive damages awards. The Senate on Wednesday approved an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 that ends the deduction in order to pay for an extension of the First Time Home Buyer Credit program. The deduction for punitive damages awards has been controversial over the years and still divides tax scholars and practitioners.
Senate Moves to End Punitive Damages Tax Deduction
The National Law Journal
June 21, 2010