Today, Congressman Joe Donnelly hailed the signing into law of the Recovery Rebates and Economic Stimulus for the American People Act. This economic stimulus package will provide a boost to the economy by getting money into the hands of American families and small businesses.
"I am proud that Congress and the president were able to work together in a bipartisan manner to provide economic relief to those who need it most," Donnelly said. "The plan signed into law today will give our economy a boost, create jobs and make it easier for Hoosier families to make ends meet."
The plan will provide a tax rebate for the low and middle-income families who are being hit hardest by the economic downturn. More than 130 million families, including 35 million families across the country with individuals who work but make too little to pay income taxes, will receive a tax rebate.
Additionally, the plan will provide rebate checks to 28 million households of senior citizens and disabled veterans. Donnelly was the original sponsor of the legislation to include seniors, which became part of the final stimulus package.
"I was especially pleased that my legislation to provide rebates to seniors who receive over $3,000 a year in Social Security was included in the final legislation. I fought hard to make sure over 20 million seniors on fixed incomes are given the financial boost they deserve, and I am glad that they will soon see this money in the form of a rebate check."
Also included in the legislation is a provision to allow small businesses to write off their taxes for capital investments, which is meant to encourage investments in new equipment. The plan also offers immediate tax relief for all businesses that invest in new equipment by speeding up depreciation provisions, so that firms can write off an additional 50 percent of investments made in 2008.
Finally, the bipartisan plan includes provisions to help families avoid losing their homes to foreclosure. It expands affordable mortgage loan opportunities for families at risk of foreclosure through the Federal Housing Administration. To enhance credit availability in the mortgage market, the measure also includes a one-year increase in the loan limits for single family homes from Fannie Mae and Freddie Mac.