Federal Tax Report – Economic Stimulus Legislation
The House has written and passed a stimulus package intended to put a halt on recession. The Senate Finance Committee also has reported a more extensive package that will be debated during the month of February. Both chambers anticipate that the package will reach President Bush by no later than February 15. The vote on the House package was 385 – 25.
The focus of each package is a rebate that will be sent to most Americans. Under the House bill the rebate would be $600 per individual ($1200 on a joint return). The Senate Bill rebate would be $500 ($1000 on a joint return). A $300 rebate would be available for each child, without restriction on the number of eligible children. The rebate would phase out for upper income taxpayers. The Senate version of the rebate would include retirees and veterans not covered in the House bill.
The Senate Finance Committee also created provisions not found in the House bill. Both packages would allow a deduction for 50% bonus depreciation that would apply to leasehold improvements and both packages also increase from $128,000 to $250,000 the maximum amount that a small business could deduct immediately rather than depreciating. The Senate, however, includes a provision that would allow taxpayers to carry back any operating losses generated in 2006, 2007 or 2008 for 5 years rather than just 2 years as under current law. The Senate package also includes a provision intended to help homeowners stay in their homesby allowing state housing agencies to issue additional mortgage revenue bonds and to use the proceeds from those bonds to assist eligible homeowners to refinance subprime mortgages.
For more information about real estate issues in Katy or West Houston contact Steve Reddell. He is a licensed real estate agent you can trust. You can contact him directly at 281-994-5173. You can also visit him on the web at www.katyfamilyhomes.com.
Filed under: Economy/Market, Houston Area Real Estate, Katy Family Homes
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