Economic Stimulus Plan Highlights
Included in the economic stimulus plan that Congress agreed upon yesterday are various tax provisions. The economic stimulus plan still needs to have the House and Senate votes before having President Obama sign it into law. The total bill is almost $790 billion.
Here are some of the highlights to tax law:
- Home Buyer Tax Credit: Eliminate a proposed $15,000 Home Buyer Tax Credit in favor of an $8,000 home buyer tax credit for first time home buyers. Unlike the 2008 $7,500 Home Buyer Tax Credit it doesn’t need to be repaid.
- Tax Credit: $400 for single workers and $800 for couples in 2009 and 2010.
- Education: Offer a $2,500 expanded tax credit for college tuition.
- Alternative Minimum Tax: Save 24 million people from paying AMT in 2009.
- Bonus Depreciation: Businesses can use the increased depreciation schedules again in 2009.
- New Cars: Sales tax will be deductible.
More details are available in: Economic Stimulus Plan Watch.
