Daily Tax Update - February 24, 2009

PRESIDENT EXPECTED TO OUTLINE ECONOMIC RECOVERY PLANS TONIGHT:  White House Press Secretary Robert Gibbs said that President Obama “will talk about more details in a financial stability plan that will get the banks that, right now, aren't lending to families and small businesses, the ability to begin doing so; get our economy moving again, get credit flowing.” Gibbs also said that, “His main goal is to give the American people an honest assessment about the challenges that we face, but lay out a blueprint and a vision for meeting those challenges. The economy is the bulk of the speech.”

  • Gibbs added, “Look, we have to be honest about where we are in this situation. We're not going to have the ability to make tough choices and to bring the American people along in those tough choices if we're not honest about where we are. We are in a tough economic time.” Gibbs also said that the President would stress "that there are brighter days ahead for this country, if we take some of those steps to get people back to work.”

MISCELLANEOUS GUIDANCE ISSUED TODAY:
Revised copy of Revenue Procedure 2009-18 provides issuers of qualified mortgage bonds, as defined in section 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in section 25(c), with (1) nationwide average purchase prices for residences located in the United States, and (2) average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam.

TAX BILLS INTRODUCED FEBRUARY 23RD:
H.R.1112: To amend the Internal Revenue Code of 1986 to increase the incentives for E-85 fuel vehicle refueling property.
Sponsor: Rep Rehberg, Denny [MT] (introduced 2/23/2009)      Cosponsors (None)

H.R.1113: To amend the Internal Revenue Code of 1986 to provide a 15-year recovery period for property used in the transmission or distribution of electricity for sale.
Sponsor: Rep Rehberg, Denny [MT] (introduced 2/23/2009)      Cosponsors (None)

H.R.1119: To amend the Internal Revenue Code of 1986 to expand the application of the homebuyer credit, and for other purposes.
Sponsor: Rep Davis, Lincoln [TN-4] (introduced 2/23/2009)      Cosponsors (None)

H.R.1126: To amend the Internal Revenue Code of 1986 to provide that a deduction equal to fair market value shall be allowed for charitable contributions of literary, musical, artistic, or scholarly compositions created by the donor.
Sponsor: Rep Lewis, John [GA-5] (introduced 2/23/2009)      Cosponsors (14)

H.R.1132: To amend the Internal Revenue Code of 1986 to extend and modify the railroad track maintenance credit.
Sponsor: Rep Pomeroy, Earl [ND] (introduced 2/23/2009)      Cosponsors (1)

H.R.1134: To amend the Internal Revenue Code of 1986 to allow the credit for nonbusiness energy property for 2008.
Sponsor: Rep Sensenbrenner, F. James, Jr. [WI-5] (introduced 2/23/2009)      Cosponsors (3)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE
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