Senate Democrats are unveiling a $26 billion temporary tax cut for businesses to boost their payrolls and encourage investment in new equipment.

The legislation would award businesses a tax credit of 10 percent on the salaries of new hires or for pay raises given to existing workers. Businesses that make major new capital investments in new equipment and machinery would be able to write off those investments immediately rather than over several years.

The idea is to both boost hiring and investment as the fragile economic recovery continues to take hold.

The tax cuts would be temporary and apply to 2012 wages and investments.

Later Monday, the Senate appears likely to set in motion a debate on legislation to repeal tax breaks for the five biggest oil companies.