Stimulus Package: The List Of $275 Billion In Tax Cuts

AP

The $825 billion economic stimulus package sought by President Barack Obama includes $275 billion in temporary tax breaks for businesses and individuals to help lift the U.S. economy out of a yearlong recession.

Here are some of the major provisions of the tax package the House Ways and Means Committee approved Thursday:

For Individuals:

—Creates a refundable tax credit for 2009 and 2010 of up to $500 for an individual and $1,000 for families. Credit phases out for individuals earning more than $75,000 and couples earning more than $150,000.

—Provides a temporary increase in the earned income tax credit for working families with three or more children.

—Allows low-income families in 2009 and 2010 to take advantage of a refundable child tax credit.

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—Sweetens a refundable first-time home buyer credit for homes purchased after January 2009. Home buyers would not have to repay the credit unless the home is sold within three years.

—Gives a new tax credit of up to $2,500 for college expenses.

For Businesses:

—Extends through 2009 a tax break for businesses investing in new equipment, allowing them to write off those purchases faster.

—Extends through 2009 a break for small businesses that allows them to immediately write off up to $250,000 in capital expenditures.

—Allows companies to write off current losses against previous tax years for up to five years. Currently, companies can only "carry back" losses for two years. The tax break would not be available to banks and other companies receiving help from the $700 billion bailout package.

—Repeals a Treasury Department ruling last year that loosened restrictions on companies in a merger claiming losses incurred by the companies they acquire. This provision raises about $7 billion over 10 years.

For State And Local Governments:

—Allows financial institutions to buy more tax-exempt bonds. The provision is expected to help boost demand for state and local bonds.

—Eases alternative minimum tax requirements to encourage purchases of private activity bonds.

—Increases the amount of tax-preferred school construction and renovations bonds that can be issued by state and local governments.

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—Creates a federal subsidy for state and local governments offering bonds that give investors credits against their federal taxes in place of interest payments.

—Creates a new category of tax credit bonds for investment in economic recovery zones.

Renewable Energy Breaks:

—Extends tax breaks for wind facilities and other renewable energy facilities and provides other tax incentives to encourage development of renewable energy facilities.

—Authorizes additional $1.6 billion of new clean renewable energy bonds as well as $2.4 billion of energy conservation bonds to finance state and local government projects to reduce greenhouse gas emissions.

—Provides an enhanced research and development tax credit for work on fuel cells, battery technology and other renewable energy and conservation technology.

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