Business & Finance Taxes

American Recovery and Reinvestment Act of 2009 & Federal Taxes

    Features

    • The law created several new tax credits. These included the Making Work Pay Credit, good for as much as $400 per worker, a new Homebuyer Credit, and credits for making energy-efficient home improvements. It also expanded existing tax credits, including education credits, the Health Coverage Tax Credit, the Earned Income Tax Credit and the Additional Child Tax Credit. People who bought new cars in 2009 were allowed to take an additional deduction for the sales taxes on those cars, even if they didn't itemize.

    Time Frame

    • Generally, the new tax credits in the stimulus law were good for only one or two years. The Making Work Pay Credit, for example, was designed to go away after the 2010 tax year. The deadline to buy a home to qualify for the Homebuyer Credit was originally June 30, 2010, but it was extended three months.

    History

    • The stimulus bill was the first piece of legislation introduced in the House of Representatives in 2009. It passed the House on Jan. 28 and the Senate on Feb. 10, and President Barack Obama signed it into law Feb. 17.

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