To provide a sense of the stimulus package's overall funding levels, we have prepared a general overview of the bill by subject area. Please note that this is a general overview of funding levels only, and does not report on every aspect of the bill. For a detailed analysis on any subject matter and the process for securing these federal dollars, please contact the Patton Boggs professionals listed below for each respective subject area.
H.R. 1 includes approximately $287 billion of tax relief for individuals, businesses, and State and local governments.
- $10 billion allocation for recovery zone economic development bonds.
- $15 billion allocation for recovery zone facility bonds.
- Modification of a Tax-Exempt Interest Expense Rule for Financial Institutions.
- Creation of new category of tax credit bonds for the construction, rehabilitation or repair of public schools.
- Additional $ 1.4 billion of issuing authority for Qualified Zone Academy Bonds.
- $2 billion of tax-exempt Tribal Development Bonds.
- $2.3 billion of Investment Tax Credit for certified Qualifying Advanced Energy Projects.
- Facilities that produce electricity from wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, waste-to-energy and marine renewable facilities:
- Investment Credit in Lieu of Production Credit
- Grants from Treasury in lieu of production credits
- Extension of Energy Credit for Electricity Produced from Renewable Sources.
- $1.6 billion of clean renewable energy bonds.
- $2.4 billion of qualified energy conservation bonds to finance State and municipal and tribal government programs and initiatives.
- Increase in alternative refueling property credit for businesses.
Enhancement of New Markets Tax Credit
- Additional $1.5 billion for 2008 allocations.
- Additional $1.5 billion for 2009 allocations.
Low-Income Housing Grants in Lieu of Tax Credits
- Taxpayers would be allowed to receive a grant from the Treasury Department in lieu of tax credits.
Build America Bonds
- State and local governments are provided the option of issuing a tax credit bond instead of a tax-exempt governmental obligation bond.
- State or local governments may elect to receive a direct payment from the Federal government equal to the subsidy that would have otherwise been delivered through the Federal tax credit for bonds.
General Business Tax Provisions
- Extension of carryback period for losses for small businesses
- Extension of Bonus Depreciation.
- Extension of monetization of accumulated alternative minimum tax and R& D credits in lieu of bonus depreciation.
- Delay of the 3% withholding tax on payments to businesses that sell goods or services to governments.
- Deferral of Income from Discharge of Indebtedness.
- Modification of rules for original issue discount on high yield obligations.