President Bush has signed the $170 billion dollar economic stimulus package on Wednesday, February 13th. The government hopes the package will send most Americans tax rebates checks by May. The package also includes tax breaks for equipment purchases by businesses, as well as payments to disabled veterans and some senior citizens.
The package will pay most individual taxpayers $600 and $1,200 for married taxpayers filing joint returns as long as they are below income caps of $75,000 for individuals and $150,000 for couples. There is also a $300 per child tax credit. Taxpayers will receive this amount if they have at least $1 of tax liability or $3,000 in qualifying income, defined as the sum of earned income, veterans' disability payments (including payments to survivors of disabled veterans) and Social Security benefits.
The measure provides employers the opportunity to fully expense equipment up to $250,000 in the year it is purchased with an overall annual investment limit of $800,000. In addition, the measure increases the loan limits for Fannie Mae and Freddie Mac and FHA-approved mortgages.
In addition there is a bonus first-year depreciation deduction that permits a bonus first-year depreciation deduction of 50% of the adjusted basis of qualified property acquired and placed in service after Dec. 31, 2007, and before Jan. 1, 2009. |
