WASHINGTON, DC. January 29, 2008 – Today the House of Representatives, with the support of Rep. Ken Calvert (R-CA), passed H.R. 5140, the Economic Stimulus Package.

"The economic stimulus package reflects common-sense, conservative principles that believe that money is better kept with the people, not the government," said Rep. Calvert. "The agreement will return hard-earned money to the American taxpayer and allow for quicker business expensing for America’s employers."

Part of the agreement also includes an increase in Federal Housing Administration (FHA) /Government Sponsored Enterprises (GSE) Conforming Loan Limit: The conforming loan limits for both FHA and GSE (such as Fannie Mae and Freddie Mac) loans would be increased from $362,000 to $725,000 for FHA and from $417,000 to $625,000 for GSE. The increases would be available until December 31, 2008. FHA and GSE loans are only available for primary residences.

The 44^th Congressional District of California, which experienced a dramatic increase in home prices, has been severely impacted by high foreclosure rates. According to a real estate tracking firm, foreclosure filings in Riverside County jumped more than 50 percent last month and increased by 300 percent compared to a year ago. The current FHA loan limit has prevented many honest homeowners from refinancing their mortgage with an FHA loan. The increase provided in the agreement will provide families in the congressional district with an option to refinance instead of suffering through a foreclosure – an option that does not benefit either the lender or owner.

"In no way do I support a taxpayer bailout for faulty financial decisions," said Rep. Calvert. "However, the current FHA loan limit is simply not realistic for southern California homeowners. The temporary increase more accurately represents the prices of homes in various parts of the country."

Rebate Checks: The economic growth package includes rebate checks in the sum of two separate calculations, with an overall phase-out for those with adjusted gross incomes above $75,000 for a single taxpayer and $150,000 for married couples.  Rebate checks will include a base amount determined by the greater of two options: (a) Income tax paid in 2007, with a maximum of $600 for a single taxpayer and $1,200 for married couples; or (b) $300 for an individual and $600 for a married couple, provided the individual or couple earned income of at least $3,000 in 2007.

A children’s bonus also will be included in the rebate check calculation.  Anyone qualifying for the base amount also receives an additional $300 per child, with no cap on the number of children.

Bonus Depreciation: The economic growth package provides for a 50 percent bonus deduction on new equipment in the year it is placed in service, with certain exceptions for equipment with a "long life."  This temporary tax cut offers significant savings on new property with a depreciation period of 20 years or less.  This will give employers – particularly small businesses – greater incentive to invest and create jobs for more Americans searching for work.  The temporary bonus depreciation, coupled with expensing measures enacted in May 2003, resulted in a four percent increase in business spending in the first six months alone.

Section 179 Expensing: This provision allows employers, including small businesses, to fully expense $250,000 in both new and used tangible property in the year it is purchased up to an overall investment limit of $750,000.  This will provide a particularly strong incentive for small companies to invest in their businesses so they can continue to provide good-paying jobs for the American people.

Increase in Federal Housing Administration (FHA)/Government Sponsored Enterprises (GSE) Conforming Loan Limit: The conforming loan limits for both FHA and GSE (such as Fannie Mae and Freddie Mac) loans would be increased from $362,000 to $725,000 for FHA and from $417,000 to $625,000 for GSE.

The legislation includes no extraneous spending on unemployment insurance, transportation infrastructure, food stamps, and Medicaid.  In a letter to Speaker Pelosi last week, Republican Leader Boehner and Republican Whip Roy Blunt (R-MO) asked that any extraneous spending and tax hikes be taken off the table.  All were dropped.