2009 Economic Stimulus Bill Details

The details of the 2009 Economic Stimulus bill are lengthy and complicated as they are outlined by the government. It provides an enormous amount of government spending along with many new tax breaks for individuals and businesses.

Here I will try and sort out the key points that seem to interest most Americans at this time:

• A $7,500.00 first-time home buyer tax credit.
• Funding for road, bridge, and transit repair.
• Low income housing grants.
• Tax credits and grants for energy efficient construction and remodeling of homes and businesses.
• Tax exempt housing bonds.
• Increase the amount of federal pell grants for college students.
• One time $250.00 payments to social security beneficiaries.
• Increase in the earned income tax credit.
• Additional $2,500.00 in tax credits for college expenses.
• Temporary suspension of the AMT tax.
• Capital gains tax breaks for businesses.
• Electric vehicle tax credit.
• Payroll tax credit.
• Increased school funding.
• To create 3-4 million new jobs.
• Lowering health care costs.
• Provide a tax credit for the working.

This plan will total about $800 billion in spending and tax cuts in an attempt to jumpstart the economy. Approximately $287 billion of that will be in tax cuts. A lot of these tax breaks will be aimed at people who make less than $200,000 annually.

Most of the provisions in the plan focus on providing new jobs and putting money back in to the pockets of consumers. A lot of the government spending will have an indirect affect as the economy will grow stronger as consumers begin to spend this extra money and the demand for products increases.

To learn more about these new tax breaks, visit TurboTax Online. TurboTax Online has up-to-date information on the new economic stimulus bill.