Daily Tax Update - July 28, 2008

SENATE CLEARS HOUSING STIMULUS BILL FOR  PRESIDENT’S SIGNATURE:  On July 26, the Senate passed the “Housing and Foreclosure Prevention Act” by a vote of 72-13. The bill contains includes $15.1 billion in tax incentives. The President has said that he will sign the bill.

  • Under the bill, the maximum allowance for the first-time home buyer credit is now $7,500. The bill also provides a new standard deduction of up to $1,000 for non-itemizers; expands certain Gulf Opportunity Zone incentives; and temporarily increases mortgage revenue bond volume. The bill also includes a provision that allows the Treasury Department to expand the line of credit to Fannie Mae and Freddie Mac.
  • Offsets include information reporting for payment card and third-party network transactions, denial of excludable gains from the sale of a primary residence for periods in which the home was not used as a primary residence, and a two-year delay in the implementation of the worldwide interest allocation benefit.

S.3336: A bill to amend the Internal Revenue Code of 1986 to reduce our dependence on foreign oil by investing in clean, renewable, and alternative energy.
Sponsor: Sen Dole, Elizabeth [NC] (introduced 7/25/2008)      Cosponsors (None)

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