Bipartisan Stimulus Plan Signed into Law

Press Release

After joining President Bush and Congressional leaders at the White House for the signing ceremony of the bipartisan economic stimulus plan, Congressman Jerry McNerney (CA-11) praised the Recovery Rebates and Economic Stimulus for the American People Act.

Nearly 15 million Californians will receive tax rebates of up to $1,200 per couple, plus $300 per child as early as mid-May. And small businesses throughout the state will receive targeted tax cuts for making investments in new equipment. By getting money into the hands of America's small businesses and families, the plan is expected to add 500,000 jobs to the economy.

"As our district faces serious economic challenges like an astronomically high foreclosure rate, especially in San Joaquin County and eastern Contra Costa County, as well as a rising unemployment rate, I am pleased that I was able to work with Democrats, Republicans and the President to deliver real relief," Rep. McNerney said. "With the economic uncertainty in our district, I was privileged to be at the White House today to watch this legislation be signed into law. This plan will give our economy a boost, create jobs and make it a bit easier for families to make ends meet."

The plan will provide a tax rebate for the low and middle-income families who are being hit hardest by the economic downturn. The plan will also provide recovery rebate checks to 33 million senior citizens and disabled veterans.

The bipartisan legislation also includes tax cuts for small businesses, doubling the amount small businesses can immediately write off their taxes for capital investments, and encouraging investments in new equipment.

Additionally, the plan offers immediate tax relief for all businesses that 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 our nation's economic engine, creating jobs and powering our economy," said Rep. McNerney. "Providing them incentive to make investments in new equipment will lead to positive ripple effects throughout the economy."

Importantly, the bipartisan 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.

"I raised with the Speaker the issue of increasing the conforming loan limit, and I'm pleased it's in the package," Rep. McNerney said. "Taking that step will mean more people throughout California will have lower-interest loans, helping stabilize the real estate market and allowing more people to refinance into lower interest rate mortgages."

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