2009 Economic Stimulus Bill
Of the new $787 billion dollar 2009 Economic Stimulus Bill, or American Recovery and Reinvestment Act of 2009, approximately 35%, or $282 billion dollars is in tax relief measures that will affect 95% of the U.S. population.
The 2009 Economic Stimulus Bill also includes many tax saving breaks for individual taxpayers. Some highlights include:
- Credit for Workers: A refundable tax credit of up to $400-per-worker for lower- and middle-income working taxpayers and up to $800 for working couples.
- Earned Income Credit Increase: Earned income credit amounts will be increased for working families with three or more children.
- Increased Incentives for First-Time Home Buyers: First-time home buyers will be able to claim a credit of $8000 for homes bought after January 1, 2009. The bill removes the prohibition on financing by mortgage revenue bonds. This credit will not need to be repaid unless the home is sold within three years of purchase.
- A Tax Break for Buying a Car: Car buyers will be able to deduct the sales and excise taxes they pay on a new car but not the interest on their car loans.
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