A new tax deal reached by Senate leaders includes several major provisions sought by Northwest lawmakers, not the least of which is an extension of a multiyear program that pays rural counties hurt by federal logging cutbacks.

Idaho Sen. Mike Crapo, a member of the Senate Finance Committee, says the timber payments, which compensate counties stung by dropping timber sales on federal land, would run through 2011.

US Senator Mike Crapo (R-Idaho) comments

The bill also would allow Washington state residents to continue deducting state sales taxes on their federal income tax returns, and extends billions of dollars in tax credits for renewable energy. Washington is one of at least eight states without an income tax where taxpayers faced the possibility that they could lose the ability to deduct state or local sales taxes from their federal returns.

The agreement would also extend targeted tax breaks for a variety of causes, including college tuition, state and local sales taxes and research and development for U S businesses.

The Senate is expected to vote on the tax bill later this week. If approved, the legislation would go to the House. (AP)