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Details of the Fiscal Stimulus Plan – Part 6

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Tax provisions

Business tax cuts

Tax breaks for low-income housing investors

$143

Tax provisions

Individual tax cuts

$400 payroll tax credit for workers earning up to $75,000; married couples filing jointly get $800 for income up to $150,000

$116,199

Tax provisions

Individual tax cuts

Increase in earned income tax credit for working families with more than three children

$4,663

Tax provisions

Individual tax cuts

Increased eligibility for refundable child tax credit, with all income over $3000 qualifying

$14,830

Tax provisions

Individual tax cuts

Tax credit of up to $2500 for tuition and college expenses

$13,907

Tax provisions

Individual tax cuts

Computers and computer technology will qualify for inclusion in tax-advantaged savings plans

$6

Tax provisions

Individual tax cuts

A tax credit for first-time homebuyers increases from $7500 to $8000, and will not have to be repaid

$6,638

Tax provisions

Individual tax cuts

Taxpayers earning less than $125,000 can deduct sales and excise taxes paid on new cars

$1,684

Tax provisions

Individual tax cuts

$2400 of unemployment benefits will not be subject to federal income tax

$4,740

Tax provisions

Individual tax cuts

Middle-income taxpayers get an exemption from the alternative minimum tax of $46,700 for an individual and $70,950 for a married couple

$69,759

Tax provisions

Business tax cuts

Businesses will be able to more quickly deduct the cost of investments in plant and equipment from their taxable income

$5,074

Tax provisions

Business tax cuts

Businesses will be allowed to recover alternative minimum tax and research and development credits faster

$805

Tax provisions

Business tax cuts

Small businesses will be allowed to write-off up to $250,000 of capital expenditures in the year of acquisition

$41

Tax provisions

Business tax cuts

Unprofitable small businesses with annual receipts of less than $15 million can recoup taxes paid in the past five years, up from two

$947

Tax provisions

Business tax cuts

Companies will be allowed to defer taxes for five years on several transactions aimed at restructuring balance sheets, and repay the taxes over the following five years

$1,622

Tax provisions

Business tax cuts

Businesses will be able to claim a tax credit for 40% of the first $6000 of wages paid to unemployed veterans or 16-25-year-olds hired

$231

Tax provisions

Business tax cuts

Small businesses will be able to exclude 75% of the gain from the sale of some stock held more than five years

$829

Tax provisions

Business tax cuts

Taxable corporations converting into S corporations will have a 7-year holding period for assets subject to built-in gains tax, from 10 years

$415

Tax provisions

Business tax cuts

Restoring tougher rules on taxpayers claiming losses incurred by a company before they bought it is projected to raise money

($6,977)

Tax provisions

Business tax cuts

Some companies restructuring may not be subject to those tougher rules

$3,163

Tax provisions

Business tax cuts

Manufacturing facilities producing "intangible property" such as patents can qualify for industrial development bonds

$203

Tax provisions

Business tax cuts

Facilities making advanced energy property may be able to claim a new 30% investment tax credit

$1,647

Tax provisions

Infrastructure tax cuts

$10 billion "new markets tax credits" will be available for 2008 and 2009

$815

Tax provisions

Infrastructure tax cuts

$25 billion of bonds for investment in economic recovery zones will be created

$5,371

Tax provisions

Infrastructure tax cuts

Tribal governments will have fewer requirements on their ability to issue tax-exempt bonds

$315

Tax provisions

Infrastructure tax cuts

High-speed rail facilities for trains capable of going at 150 miles per hour will qualify for facility bonds

$288

Tax provisions

Infrastructure tax cuts

Rules affecting state and local government bonds will be changed to improve marketability

$3,789

Tax provisions

Infrastructure tax cuts

A 3% withholding on payments to government contractors will be delayed for one year

$291

Tax provisions

Infrastructure tax cuts

$22 billion in new tax credit bonds for construction or repair of public schools

$9,877

Tax provisions

Infrastructure tax cuts

$2.8 billion of bonds for schools working with businesses

$1,045

Tax provisions

Infrastructure tax cuts

35% credit to bondholders for infrastructure bonds, 35% refundable credit to issuers of bonds

$4,348

Tax provisions

Energy tax cuts

Extending by three years the placed-in-service date for renewable energy investments

$13,143

Tax provisions

Energy tax cuts

Investment credits in lieu of production credits for renewable energy purchases

$285

Tax provisions

Energy tax cuts

Removal of cap on tax credits for purchase of small wind systems

$604

Tax provisions

Energy tax cuts

$1.6 billion extra allocation of clean energy bonds

$578

Tax provisions

Energy tax cuts

$2.4 billion extra qualified energy conservation bonds

$803

Tax provisions

Energy tax cuts

30% cap on tax credit for energy efficiency purchases by homeowners,
up to $1500 per residence

$2,034

Tax provisions

Energy tax cuts

Credit for purchase of residential solar, geothermal, wind and fuel cells

$268

Tax provisions

Energy tax cuts

50% tax credit for purchase of alternative refueling stations

$54

Tax provisions

Energy tax cuts

Tax credit for plug-in electric vehicle conversion

$2,002

Tax provisions

Energy tax cuts

Equalization of parking and transit tax-free employer benefits at $230 for 2009

$192

Tax provisions

Energy tax cuts

Grants to states for low-income housing projects in lieu of credits

$5

Tax provisions

Energy tax cuts

Grants to states for energy projects in lieu of credits

$69

Tax provisions

Individual tax cuts

One-time payment of $250 for retirees, disabled people, SSI recipients, railroad retirees and disabled veterans

$14,225

Tax provisions

Individual tax cuts

One-time refundable tax credit of $250 for some government retirees not eligible for social security benefits

$218

Subtotal

$301,188

Grand Total

$790,614