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.
TAX
H.R. 1 includes approximately $287 billion of tax relief for individuals, businesses, and State and local governments.
Bond Provisions
$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.
Energy Incentives
$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.
