Making Work Pay Credit Expanded Earned Income Credit To Offset Payroll Taxes -
6.2 percent of earned
income of the taxpayer, $400 ($800 in the case of a joint return)
Phased out at $95,000 of individual taxpayer, $190,000 of joint return
ETA JUNE
Child tax credit, Income
threshold reduced to $3,000, provides credit of 15% on all earnings, up to $1,000
American
Opportunity Education Credits w/ $2,500 credit for first four years of
higher education expenses (increase income limitations), with credit
partially-refundable (30% refundable); adds course materials to tuitions and
fees, increases credit to taxpayers with $80,000 income or households with
$160,000
Opportunity.gov Education Assistance Programs
Sales Tax
Deduction on new car purchases, phased out on $125,000 income per earner.
Raises
Exemption on AMT to 70,950 for joint filers and $46,700 for singles, expands
applicable credits.
Remove
repayment requirement on $8,000 first-time home buyer credit for homes
purchased after 2008 and before termination of credit (June 30, 2009)
Extends tax
credits through 2010 to make energy-efficiency improvements to homes, equal to
30 percent (capped at $1,500) of the amount they paid for energy-efficient
furnaces, hot water boilers and other energy savings improvements.
30 percent
uncapped tax credit for solar water heating property, small wind energy
property and geothermal heat pumps
Tax credit for
newly unemployed to cover up to 65% of COBRA. Tenured Workers over 55
can maintain COBRA until they are eligible for Medicare.
For Business
Tax Cuts
Bonus depreciation
for capital expenditures and debt cancellation
5-year carryback of net operating losses
for companies earning less than $15 million
Extension of increased small business
expensing, $250,000 deduction direct from tax liability
Defer taxes
five years on debt cancellation
Expand work opportunity tax credit for
disconnected youth and unemployed, recently-discharged veterans
Prospectively
repeal Treasury Section 382 built-in loss ruling, that helped the Wells Fargo
acquisition of Wachovia.
Allow financial institutions to purchase
State and local bonds and other changes
Coordination
provisions with new grant program for low-income housing being designed by the
Financial Services Committee
Repeal AMT limits on new private activity
bonds
Taxable bond option for governmental bonds
Clean renewable energy bonds
One year deferral of withholding tax on
government contractors
Provide tax exempt bonds and tax credit
bonds to "recovery zones." These tax exempt bonds and tax credit bonds can
be used for a wide array of purposes to stimulate economic development,
including job training and education. A "recovery zone" would be an area
within a State, city or county that has exhibited high unemployment,
foreclosures or poverty. These bonds would be allocated automatically to
States and large municipal governments based on the number of unemployed
individuals within that area.
For Energy Incentives
Tax Cuts - $20 Billion
Provides $20 billion in tax incentives for renewable energy and
energy efficiency
Three-year extension of the production tax credit (PTC)
for electricity derived from wind, biomass, geothermal, hydropower, landfill gas, waste-to-energy, and
marine facilities
Grants of up to 30 percent of the cost of building certain new renewable energy facility
Expands tax credits through 2010 for purchases such as new furnaces,
energy-efficient windows and doors, roofs, cooling equipment and insulation.
Provides a tax credit for individuals to purchase plug-in hybrid
vehicles, alternative-fuel vehicles, diesel vehicles with advanced
lean-burn technologies, and fuel-cell vehicles of up to $7,500
New manufacturing investment tax credit for
investment in advanced energy facilities and other innovative next-generation green technologies.
