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  Senate Democrats, such as Sen. Charles Schumer (D., N.Y.) said the provision isn't narrowly tailored enough to stimulate new-home construction. Roberton Williams, a senior fellow at the Tax Policy Center, agrees. "The other people who making out like bandits are people who would have bought houses anyway," Mr. Williams said. Manufacturers, home builders and firms in other sectors that were unprofitable in 2008 and 2009 would gain the ability under the Senate bill to turn their losses into tax refunds. The bill allows them to use those losses to offset tax liability as far back as 2003. The Senate provision is slightly more generous than a similar 5-year net operating loss carryback provision in the House bill. It would allow firms to carry back 100% of losses, while only 90% of losses would be eligible for the 5-year carryback under the House bill. "Manufacturing is general is a cyclical industry, so net carryback loss is very important," said Dorothy Coleman, vice president of tax and domestic economic policy at the National Association of Manufacturers. "Typically any industry that is cyclical would benefit from this." The National Association strongly backs the Senate measure and made it a "key vote" for the purposes of rating lawmakers. The U.S. Chamber of Commerce also backs the bill. Another amendment to the Senate bill, sponsored by Sen. Barbara Mikulski (D., Md.) would allow individuals buying a new car using financing to write down any interest payments they make during the year. It would also let people claim the state excise tax they pay on the purchase off their tax liabilities. The bill provides a modest boost for the auto industry amid a poor and worsening outlook. All three of the major U.S. carmakers last week said January sales had plummeted. Chrysler LLC saw sales drop by 55%, while both the Ford Motor Co. and General Motors Corp. reported sales down at least 40%. But the Tax Policy Center's Mr. Williams said that the car-buyer credit has many of the same problems as the home-buyer credit. "It'll boost demand for cars a little bit, but in some ways the biggest winners are people who would have bought cars anyway," Mr. Williams said. The Senate bill includes a new 10% tax credit for electric motor scooters, such as those made by Middletown, R.I.-based Vectrix Corp., and 3-wheeled vehicles. One small-scale energy spending item would provide a big win for advocates of "clean-coal" technology. The Senate compromise retains $2 billion for FutureGen, a proposed low-emissions coal-fired power plant in Mattoon, Ill. Sen. Tom Coburn (D., Okla.) has complained that the FutureGen funding amounts to a large earmark. States emerge as one of the biggest losers, after changes agreed to as part of the Nelson-Collins compromise. The new version of the Senate bill would drop proposed funding for a state fiscal stabilization fund from $79 billion to $39 billion. Many states, such as California, are struggling to balance their budgets. Without a major infusion of funds, state governments worry that they could have lower the level of services they provide -- which could effect staffing at schools, prisons and other essential services -- or even raise payroll taxes. "If states don't get some sort of reprieve, or some sort of assistance, then they don't have any options and they have to increase payroll taxes, and it's not a choice that states like to make," said Michelle Blackston, a spokeswoman for the National Conference of State Legislatures. Executives -- especially at firms receiving funds from the Treasury's Troubled Asset Relief Program -- also emerge as a loser in the bill. An amendment by Senate Banking Chairman Christopher Dodd (D., Conn.) would prohibit firms receiving TARP funds from paying bonuses to their 25 highest-paid employees. Under the Dodd language, the Treasury Department could increase the number of employees prohibited from receiving bonuses at firms that receive TARP funds. It also would require a retroactive review of those firms to determine if they had given improper bonuses while receiving TARP funds. Another amendment offered by Sens. Claire McCaskill (D., Mo.) and Bernard Sanders (I., Vt.) would establish an annual limit of $400,000 -- equal to salary of the U.S. president -- on compensation for any employee at a firm receiving TARP funds. Hollywood loses in the bill, as the Senate approved an amendment offered by Coburn that allow film production companies to write off 50% of the cost of production equipment in 2009. The construction industry, reeling from stalled projects and difficulty in accessing financing, would see a tough loss in the Senate compromise bill. The Nelson-Collins compromise zeroes out nearly $20 billion in school construction projects that were contained in the original version of the bill.

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