New Laws to Stimulate the Economy

Congress has recently enacted new laws to create jobs and stimulate the economy. On February 13th, Congress passed the American Recovery and Reinvestment Act of 2009. The estimated cost of this program is $787 billion.

Some highlights of this program:

• Create or save more than 3.5 million jobs over the next two years
• Take a big step toward computerizing Americans’ health records, reducing medical errors, and saving billions in health care costs
• Revive the renewable energy industry and provide the capital over the next three years to double domestic renewable energy capacity
• Undertake the largest weatherization program in history by modernizing federal building space and more than one million homes
• Increase college affordability for seven million students by funding the shortfall in Pell Grants, increasing the maximum award level by $500, and providing a new higher education tax cut to four million students
• As part of the $150 billion investment in new infrastructure, enact the largest increase in funding of our nation’s roads, bridges, and mass transit systems since the creation of the national highway system
• Provide an $800 Making Work Pay tax credit for 129 million working households, and cut taxes for families with children through expansion of the Child Tax Credit

First-time home buyers who purchased a principal residence on or after April 9, 2008 and before January 1, 2009 may qualify for a $7,500 tax credit.

There are also many more credits and incentives for small businesses, for education, for fuel-saving cars, for families with children, and many other things. The new American Recovery and Reinvestment Act is designed to
get the economy moving again. It is a strategic and significant investment
in the future.

How does this affect you??

Talk to an accounting professional if you need advice or have a question.