Washington, DC -- Representative Kenny Marchant released the following statement regarding the passage of the economic stimulus package, H.R. 5140. This bill passed by a vote of 385-35.

"I was proud to vote in favor of this bipartisan agreement," stated Marchant.

"Whether you are a homebuilder in need of a new truck , a businessman thinking about purchasing a copier, or a factory owner looking to expand your production line, this bill provides the incentive to make these purchases now rather than put them off because of economic uncertainty.

"Assisting individuals, families, businesses, and homeowners will form an unabridged stimulus package that, if implemented correctly, could stave off a possible economic recession. Putting individual checks into the hands of the American people and assisting businesses with targeted incentives is a giant step forward to recharging our economy.

"Today was the first step. The Second step is making the Bush tax cuts permanent. Failure to do so will raise the taxes of 116 million Americans in 2010. One can only imagine the devastation to our nation's economy if that happens".

Summary of H.R. 5140 as passed by the House of Representatives:

Checks. The bill would provide checks from the U.S. Treasury to Americans as follows:

• A base amount would be determined by the greater of two options: (a) Income tax liability for tax-year 2007, up to a maximum of $600 for singles and $1,200 for married couples filing jointly; or (b) $300 for singles and $600 for married couples filing jointly, provided the individual or couple earned income (BEFORE including any deductions or credits) of at least $3,000 in 2007 (or had gross income in 2007 greater than the basic standard deduction plus the exemption amount for low-income filers, yielding a net tax liability greater than zero).
• Thus, individuals who owe no income taxes for 2007 could still receive this income tax "rebate"
• There would be an overall phase-out of these amounts above in 5% increments beginning with those with adjusted gross incomes above $75,000 for singles and $150,000 for married couples filing jointly.
• Anyone qualifying for the base amount above would also receive an additional $300 per child, with no cap on the number of children.
• These one-time checks would be regarded as a credit against a taxpayer's tax liability for 2007.

The Treasury Department would likely distribute the checks in May or June 2008. Americans would not have to apply or file for the checks; they would be calculated automatically.

Nonresident aliens would not qualify for the checks above, and all qualifying residents in the possessions of the United States would get checks in the same manner as above, regardless of whether they have a mirror code tax system.

The bill would appropriate $251.13 million for fiscal year 2008 for the Treasury Department to administer the checks.

Section 179 Expensing. The bill would allow employers to fully expense both new and used tangible property valued up to $250,000 in the year it is purchased, up to an overall annual investment limit of $800,000 (at which point a phase-out formula kicks in). This provision would apply for tax-year 2008 and beyond.

Bonus Depreciation. The bill would provide for a one-time 50% "bonus" tax deduction on new equipment (see 26 U.S.C. 168(k)) in the year it is placed in service, on property with a depreciation period of 20 years or less. That is, employers could deduct half the value of qualifying property in the first year, instead of a much smaller percentage. This provision would apply for tax-year 2008 and beyond.

Conforming Loan Limits. The bill would increase the conforming loan limits (i.e. the maximum value of loans that may be purchased) for the Government-Sponsored Enterprises (GSEs, such as Fannie Mae and Freddie Mac) in high-cost areas from $417,000 to the higher of either the current limit or 125% of the applicable area's median price (up to $729,750, or 175% of the current limit). This increase would only apply to mortgages originated from July 1, 2007 to December 31, 2008.

The bill would also increase the loan limits for the Federal Housing Administration (FHA) (i.e. the maximum amount of mortgage insured by the FHA) in high-cost areas from $362,000 to the higher of either the current limit or 125% of the applicable area's median price (up to $633,500, or 175% of the current limit). The Secretary of Housing and Urban Development could also increase, at his will, the FHA's loan limit by an additional $100,000. This provision would apply only to mortgages finalized on or before December 31, 2008.

NOTE: The bill does NOT contain originally proposed language regarding unemployment insurance, transportation infrastructure, food stamps, or Medicaid. However, House Speaker Nancy Pelosi has already indicated that such items would likely be part of some future economic stimulus package, if they are not added onto this legislation by the Senate.

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