Unemployment benefits extend for 33 additional weeks until the end of 2009. New federal funding is available for states providing unemployment benefits to new beneficiaries (e.g., part-time employees.) Unemployment tax payments are waived up to $2,400.
Cash Payments. A $250 payment for low-income individuals, social security and supplemental security recipients, and disabled and pensioned veterans.
Health. $21 billion for a 65% health insurance subsidy (increased from no subsidy) under COBRA for up to 18 months after discharge. Additionally: $87 billion to states for Medicaid, $19 billion for information system infrastructure, and $10 billion for health and research and NIH facilities.
Tax Credits
New Individual Tax Credit. $115 billion for a $400 individual credit, $800 for married couples, in 2009 and 2010.
University Education Tax Credit. $13 billion for a credit up to $2,500 annually for parents of university students.
Home Purchase Tax Credit. $3.7 billion provide an $8,000 credit to first-time homeowners who keep their home for at least 3 years.
Sales Tax Deduction and Tax Credit for auto purchases. A sales tax credit for vehicle purchase (up to $49,500) and a $7,500 credit for a qualifying hybrid vehicle purchase.
Energy Tax Incentive. Up to $1,500 for families who make their homes more energy efficient ($50 billion allocation.)
Alternative Minimum Tax. $70 billion allocated to eliminate this tax, saving about $2,300 per household in 2009.
Business Incentives
Equipment Purchase. $5 million to allow the accelerated depreciation of equipment purchases up to $250,000 during 2009. Autos are also included as long as they are for business use (exceptions, like SUVs, are capped at $25,000.)
SBA Loans. $630 million to the Small Business Administration for fee reductions and new loan guarantee programs, and $6 million for loans under the Microloan Program.
Benefits to States
Infrastructure. $46 billion for transportation projects, including $27 billion for highway and bridge construction and repair, $8.4 billion for mass transit, $8 billion for train tracks, $1.3 billion for Amtrak trains, $4.6 billion for the Army Corps of Engineers, $4 billion for low income housing, $6.4 billion for drinking water projects and $7 billion for Internet broadband infrastructure for rural and low access areas.
Homeland Security. Airport security and national security allocations of $1 billion and $2.8 billion, respectively.
Police. $4 billion in grants for police contracts and equipment purchases.
State block grants. $5 billion to balance cuts in state budgets.
Education. $54 billion to prevent cuts in school education, including $10 billion for school repairs, $26 million for special education and the “No Child Left Behind” program for K-12 students, $17 billion for Pell Grant programs (raising each grant by $500 to $5, 350) and $2 billion for Head Start.
The Homeowner Affordability and Stability Plan
Additional benefits are afforded under the “The Homeowner Affordability and Stability Plan” established to prevent foreclosures and incentivize banks to actively engage in mortgage modification and re-financing. For more information visit www.homeaffordable.com.
What to do from here?
Talk with your attorney, CPA and your bank and take advantage of the new Stimulus Laws. A well-organized “Stimulus Strategy” can pay off!
Copyright ©2009 Yasmin Tirado-Chiodini. All Rights Reserved.
Yasmin Tirado-Chiodini is a business attorney practicing law in Metro Orlando, Florida. This article contains excerpts of her new book “Does Your Compass Work? A Business Stimulus Kit,’ Scheduled for publication in the spring of 2009. For more information, contact Yasmin@Tirado-Chiodini.com or visit www.doesyourcompasswork.com.
By Yasmin Tirado-Chiodini, Attorney at Law |
