Today I was honored to join my Congressional colleagues at a White House ceremony to mark the President’s signing of H.R. 5140, the bipartisan economic stimulus package.
This law is a critical shot in the arm for our faltering economy. It will strengthen the economic health of our businesses, our nation, and our families.
I worked with Congressional leaders and administration officials as they crafted the bill, and I was gratified that my plan for small business tax incentives was included in the final version. These incentives will encourage our small businesses to increase investment and hiring in 2008.
Specifically, the law includes doubling the Section 179 small business expense tax deduction. This deduction allows small business owners to write off expenses immediately instead of depreciating these expenses over many years. Previous law allows businesses to write off up to $125,000. With today's signature of the stimulus package, that doubles to $250,000 for 2008 only.
H.R. 5140 contains a number of other provisions meant to strengthen our economy. They include:
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A tax cut for 130 million families: The package provides tax relief of up to $600 per individual and $1,200 per married couple, plus an additional $300 per child. An estimated 5.6 million Illinois families will receive a rebate check of $860 on average. Checks will begin arriving by mid-May.
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Increased affordable refinancing opportunities in the housing market: For 2008, the bill increases the Federal Housing Administration loan limits, expanding affordable mortgage loan opportunities for families at risk of foreclosure. Similarly, the measure includes a one-year increase in the loan limits for single family homes from Fannie Mae and Freddie Mac.
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Enhanced bonus depreciation for businesses: The bill provides immediate tax relief for all businesses to invest in new equipment by speeding up depreciation provisions, so that firms can write off an additional 50 percent for investments purchased in 2008.
I was proud to play a role in passage of this bill, and as a member of the Financial Services Committee, I'll continue working to strengthen our economy. Last year, the House passed several bills meant to address the mortgage crisis. All three are still pending action in the Senate and I continue to urge my colleagues to move on them quickly.
