U.S. Rep. John Tanner helped the House of Representatives pass legislation to help Tennessee families and small businesses hit hardest by the economic downturn. The bill will extend unemployment insurance benefits, the homebuyers’ tax credit, and tax relief for military families and businesses.

The bill, which has now been signed into law, adheres to the House’s “pay as you go” rules that curb deficit spending.

“We talk every day with out-of-work Tennesseans who have lost or are on the verge of losing their unemployment benefits,” Congressman Tanner said. “Extending this temporary relief will help working families while they continue to look for new jobs and will help support our area’s economy.”

The bill extends benefits for unemployed Tennesseans by 20 weeks. The non-partisan Congressional Budget Office has cited unemployment benefits as one of the most cost-effective forms of economic stimulus. Every dollar spent on unemployment benefits generates $1.63 in new demand, according to Moody’s chief economist Mark Zandi.

Tax Credits for Homebuyers, Military Families

The bill also includes an extension of the $8,000 first-time homebuyer tax credit through April 30, 2010, and provides a $6,500 credit to new purchasers who have lived in their current residences for five years or more.

Families who take advantage of the homebuyer tax credit are required to repay the credit if they sell their homes within three years. Under this legislation, active service members who have to sell their homes within that period because of deployment orders or post relocation will not have to repay the credit. Tanner has co-sponsored a similar provision in other legislation.

“These are important investments to help military families and other homebuyers who want to purchase homes and boost our housing market,” Congressman Tanner said. 

Tax Relief for Small Businesses

H.R. 3548 also extends a net operating loss “carryback” provision that gives more flexibility for struggling small businesses to obtain capital to support their companies.

“Small businesses are a major driving force in private-sector job creation in Tennessee and across the country,” Tanner said. “We will continue looking for ways to help create a climate in which small businesses can thrive, create jobs and support our local economy.”

Tanner represents the 8th Congressional District in West and Middle Tennessee. Co-founder of the fiscally conservative Blue Dog Democrats, Tanner serves on the Ways and Means Committee, where he chairs the Social Security Subcommittee, and on the Foreign Affairs Committee. A veteran of the U.S. Navy and the Tennessee Army National Guard, Tanner chairs the U.S. delegation to the NATO Parliamentary Assembly and is serving a two-year term as NATO PA President.