Congress has approved temporary economic stimulus legislation that was signed into law by President George W. Bush on February 13, 2008. The package offers increased expensing limits for small businesses and one-time tax rebates to millions of American citizens.
Intense negotiations between Senate leaders and the White House on February 7 lead to agreement on a slightly altered House stimulus package that the Senate quickly approved by a vote of 81-16 and sent to the House for that chamber's approval, 380-34. The revised version also extends rebate checks to some 22 million low-income senior citizens and 250,000 disabled veterans, while denying refunds to illegal immigrants.
Under the new legislation, individuals would receive rebate checks up to $600; married couples up to $1200, and an additional $300 for each child under 17 years old. The minimum rebate amount is $300 ($600 for married filing jointly). 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 net self-employment income, veterans' disability payments (including payments to survivors of disabled veterans), and Social Security benefits. Income eligibility for the rebates is capped at $75,000 for individuals and $150,000 for married couples.
In addition, 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 and provides for a one-time 50 percent bonus depreciation on new equipment in the year it is placed in service. In addition, the measure increases the loan limits for Fannie Mae and Freddie Mac, as well as FHA-approved mortgages.
Treasury Secretary Henry M. Paulson, Jr., said in a statement on passage of the stimulus bill, "the IRS will manage the current tax filing season and simultaneously prepare to issue [the rebate checks] starting in early May. Payments will be largely completed this summer."
A White House spokesman indicated that the IRS will immediately begin preparing to issue checks after President Bush signs the bill, although the exact amounts owed to eligible recipients cannot be calculated until 2007 tax returns are filed.
Stay tuned to our site for the latest information and changes regarding the 2007 tax filing season!
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