Washington Mulls Corporate Tax Break

Companies in the red following years of profits stand to benefit from an emergency tax break under consideration by President Bush and lawmakers.The provision, part of a greater economic stimulus plan, extends the time frame that companies could retroactively deduct net operating losses against earlier profits from two years to five. In a nutshell, that means companies would be able to claim refunds on taxes paid on profits from 2003 to 2007.

The economic rescue package could be approved by mid-February and would be sufficient to forestall a recession, according to The New York Times.

As of Wednesday, "everything remains on the table," said Rep. Charles Rangel of New York, and chairman of the tax-writing House Ways and Means Committee, in a statement.

A similar plan went into effect temporarily six years ago, following the Sept. 11, 2001, terrorist attacks.The Boston Globe, The New York Times