NEW YORK (CNNMoney.com) – After a meeting of key tax writers Monday evening, the word is lawmakers are making progress but still are not ready to seal a deal on the final details of a tax reconciliation bill that has been hotly debated for months.

Among the sticking points still at issue is the scope of AMT relief to provide for tax year 2006, according to Congress Daily, a publication of the National Journal.

The House passed a bill last year calling for a one-year extension of the 2005 AMT income exemption levels.

But the Senate passed a bill that is more generous. It further increases the income exemption levels for tax year 2006, and it allows for nonrefundable personal credits to be used against the AMT, which disallows a number of deductions and credits allowed under the regular tax code.

Sources told Congress Daily that House Ways and Means Committee chairman Bill Thomas (R-Calif.) is amenable to making the increased exemption levels part of the final reconciliation package but that Senate Finance Committee Chairman Chuck Grassley (R-Iowa) is also insisting the Senate bill's personal-credit provision be included as well.

Thomas reportedly suggested the personal-credit provision be passed in a separate bill.

Creating a separate bill for tax breaks like the personal-credit provision is being considered because including them in the reconciliation package will push the costs of that package beyond the $70 billion spending limit. That's because it appears likely that the final package will include both AMT relief and a two-year extension of the reduced tax rate on dividends and capital gains, both of which are costly.

Coming under that $70 billion spending limit would guarantee the reconciliation package won't be subject to filibuster.

The second bill, however, wouldn't receive such protection and therefore may be at risk of being voted down, although proponents of the second bill argue that the tax breaks included would be non-controversial.

Among the other tax breaks under consideration for the second tax bill are an extension of the state and local sales tax deduction and an extension of the research and development credit for businesses.

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