It's official - President Bush signs Economic Stimulus Act of 2008

The stimulus package that had been working its way through Congress has now been signed into law. The new law, signed by President Bush on February 13, provides $152 billion of tax rebates and business investment incentives intended to give the slowing U.S. economy a boost.

Here's what the new law contains.

• TAX REBATES. Single taxpayers can receive a one-time rebate of up to $600; married couples who file a joint return may qualify for up to $1,200. If your 2007 adjusted gross income exceeds $75,000 (single) or $150,000 (married, joint), rebate amounts begin to phase out.
• REBATES FOR THOSE PAYING NO TAX. Individuals with no tax liability but at least $3,000 of earned income in 2007 may qualify for a flat $300 check. Social security income and federal payments to disabled veterans and their widows qualify as earned income for rebate purposes. The IRS is emphasizing that people who otherwise would not have to file a 2007 tax return, must file a 2007 return in order to receive a rebate check.
• CHILD REBATES. Those who qualify for the basic rebates may also get an additional $300 for each dependent child under age 17.
• BUSINESS TAX INCENTIVES. The Section 179 limit for expensing business equipment purchases is increased for 2008 from $128,000 to $250,000, and the phase-out threshold is increased from $510,000 to $800,000. First-year 50% bonus depreciation is available for qualifying 2008 equipment purchases.
• HOMEOWNER HELP. The new law increases the mortgage limits on loans issued by Fannie Mae, Freddie Mac, and the Federal Housing Administration.

The IRS expects to begin mailing the rebate checks in May. Taxpayers do not have to do anything extra to receive their rebate. The only requirement is to file a 2007 tax return. The IRS will use the information on the return to decide eligibility and amount of the taxpayer's rebate, and checks will be sent automatically.

If you have questions or need additional information, give us a call.