Congress has taken swift bipartisan action to get our economy moving. In January, the bipartisan economic stimulus legislation (H.R. 5140) was signed into law to help hardworking Americans, jumpstart our slowing economy, and create jobs here at home.

This timely, targeted, and temporary stimulus will:

• Put hundreds of dollars (up to $600 per individual and $1,200 per married couple) into the hands of more than 130 million Americans including seniors and disabled veterans – who are most likely to spend it immediately to reinvigorate the economy;
• Build on the child tax credit by offering a one-time rebate of $300 per child;
• Expand financing opportunities for Americans in danger of losing their homes in the mortgage crisis;
• Promote small business investment in plants and equipment; and
• Help create 500,000 jobs by the end of the year.
• For more information about the tax rebate check and who may qualify for the economic stimulus rebate, click here.

For more information about the tax rebate check and who may qualify for the economic stimulus rebate, please click here.

Expediting this bipartisan bill provided unprecedented tax relief for working Americans and will inject confidence and consumer demand into the economy, promote economic growth, and create jobs. We will take additional action to help American workers and help our economy recover and grow.

This measure represents the House bill, with 2 additions from the Senate: expanding recovery rebates to an additional 20 million seniors and 250,000 disabled veterans and clarifying that undocumented workers are prohibited from receiving rebates.

Broad Tax Rebates for Individuals ($107 billion in 2008 & $117 billion over 10 years)

Tax Cut for More than 130 Million Families. This broad-based stimulus package will provide tax relief of up to $600 per individual and $1,200 per married couple, plus an additional $300 per child. Recovery rebate checks will be sent as early as May, getting money to Americans who will spend it immediately to reinvigorate the economy.

Unprecedented Tax Relief for Working Families. The measure provides $32 billion in tax relief for 35 million families who work but make too little to pay income taxes -- families who otherwise would not have been included in this recovery effort. More than 19 million of these are families with children. Americans who earned at least $3,000 in 2007 will get at least $300 per single and $600 per couple, plus a child tax credit of $300 per child. Tax rebates that include low- and moderate-income families are 24 percent more effective as stimulus than rebates that leave out these families. [Economist Mark Zandi of Moody’s Economy.com]

Recovery Rebates to 20 Million Additional Seniors and 250,000 Disabled Veterans. The measure provides recovery rebates to anyone who receives at least $3,000 in Social Security income, Railroad Retirement benefits, self-employment income or veterans’ disability payments (including for survivors of disabled veterans). The original House bill provided rebates to 13 million seniors. In total, the measure provides tax rebates to nearly 28 million senior households. Residents of the U.S. territories also will receive the benefit.

Tax Fairness and Targeted Rebates. The rebates will go to middle-income Americans and hard-working Americans struggling in this economy – with $66 billion in tax relief for families making up to $75,000. The wealthiest taxpayers are not eligible for this relief. Tax relief begins to phase out above incomes of $75,000 for singles and $150,000 for married couples.

American families are struggling in weakening economy.  Family incomes and home prices are down as health care, energy, food, education costs, and mortgage foreclosures have climbed. No wonder American families are falling behind on their bills and consumer confidence is at a record low.

Clarifies that undocumented workers cannot get recovery rebates. The measure includes safeguards to ensure that undocumented workers will not obtain rebates. It requires that all people must have valid Social Security numbers to receive recovery rebates. Undocumented persons cannot hold Social Security numbers and will not be able to access a rebate.

Jumpstarting the Economy

Relief Helps Financially-Pressed Americans -- Putting Money into the Economy. Economists estimate that each dollar of broad-based tax cuts leads to $1.26 in economic growth. Congress will develop a plan of further assistance, which could include extension of unemployment benefits, Food Stamps, state and local assistance, and Medicaid.

Helping Families Avoid Losing Their Homes

Increasing Affordable Refinancing Opportunities and Liquidity in Housing Market. For 2008, the bill increases the FHA loan limits up to $729,750, to expand affordable mortgage loan opportunities for families at risk of foreclosure through the Federal Housing Administration. To enhance credit availability in the mortgage market, the measure includes an increase in the loan limits for single family homes from Fannie Mae and Freddie Mac, from $417,000 up to $729,750, covering loans made between July 31, 2007, and December 31, 2008. This measure will help homeowners in high cost states such as Connecticut to buy, sell or refinance their homes.

Encouraging Business Investment ($44 billion in 2008, $7.5 billion over 10 years)

Small Business Expensing. The bipartisan plan doubles the amount small businesses can immediately write off their taxes for capital investments made in 2008 from $125,000 to $250,000, for purchases of new equipment of up to $800,000 (from $500,000).

Bonus Depreciation. It provides immediate tax relief for all businesses to invest in new plants and equipment by speeding up depreciation.