BATON ROUGE, La. -- A $300 million income tax break advanced with new momentum Wednesday, after Gov. Bobby Jindal made a deal with lawmakers to postpone it until next year.

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Bobby Jindal.

Jindal announced his compromise form of the bill Wednesday morning, then the House's tax committee approved it in that form hours later. The bill would deliver a break to all taxpayers who earn over $12,500, several hundred dollars to middle-class individual filers, beginning in 2009.

"This is a permanent tax break," Jindal said at a news conference with legislative leaders.

The bill's sponsor, Sen. Buddy Shaw, originally wanted it in effect immediately, delivering smaller tax bills on 2008 forms. The Jindal administration objected that the $300 million pricetag was too high for the 2008-09 budget year.

That conflict was further complicated when the Senate unanimously approved changing the bill into a 10-year phase-out of the income tax, which would have meant a drop in state revenue of an estimated $4 billion by 2018.

Sen. Nick Gautreaux, D-Meaux, who championed the elimination of state income tax, said he would not object to the bill in the form backed by the governor.

Shaw said he accepted the compromise because it would ease Jindal's budgetary planning for the 2008-09 fiscal year. He said he feared further squabbling over the bill would mean no tax relief will passed, then constituents will tell lawmakers: "You really screwed up and you didn't let us have anything."

The compromise bill means "We can have a red letter day and we can make a whole lot of people appreciative," the Shreveport Republican said.

The House Ways and Means Committee stripped off the Senate's tax phase-out provision, then postponed its effective date from 2008 to 2009.

The amendment to postpone the tax cut passed with a vote of 12-6. Those voting against the postponement included the committee chairman, Rep. Hunter Greene, R-Baton Rouge.

The panel approved the amended bill without objection. It moves to the full House, where it has backing from House Speaker Jim Tucker, R-Terrytown, and Jindal floor leaders.

The bill would give a maximum break of about $500 for individual filers and $1,000 for joint filers, depending on income. That tax relief would come on 2009 state payroll deductions and income tax forms.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

APTV 05-14-08 1659CDT