Washington, DC – U.S. Rep. John Hall (D-NY19) voted today to pass an economic stimulus package that will provide tax rebates to 7.3 million households in New York. The Recovery Rebates and Economic Stimulus for the American People Act passed the House by a vote of 385 to 35. The bipartisan legislation means that families could receive tax rebates of up to $1,200 per couple, plus $300 per child, as early as May of this year. No rebates will be made until the Senate also passes an economic stimulus package and it is signed into law.

 

"With gas, heating, and health care costs mounting, people in the Hudson Valley are struggling just to make ends meet and the economic downturn is making the situation worse," said Congressman Hall. "The legislation passed today is not perfect, but it was crucial that we move the stimulus package as quickly as possible to put money in the hands of people who will pump it back into the economy. Both Democrats and Republicans needed to compromise to reach a bipartisan agreement."

 

The legislation will give a rebate to 117 million households across the country, including 35 million who work but make too little to pay income taxes and 13 million working senior citizens. The broad-based stimulus package will provide tax relief of up to $600 per individual and $1,200 per married couple, plus an additional $300 per child. New Yorkers are expected to receive an average rebate of $863. The bill will bring a total of $6.3 billion to New York.

 

The legislation also includes tax cuts for small businesses. The bipartisan plan doubles the amount small businesses can immediately write off their taxes for capital investments, from $125,000 to $250,000. The plan also offers immediate tax relief for all businesses to invest in new plants and equipment by speeding up depreciation provisions, so that firms can write off an additional 50 percent for investments purchased in 2008.

 

"Small businesses are the lifeblood of the Hudson Valley's economy," said Congressman Hall. "We can't have a healthy economy without strong small business development."

The plan also includes provisions to help families avoid losing their homes to foreclosure. The bill 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 from $417,000 up to $729,750.

 

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