Heinrich Votes To Extend Homebuyers' Tax Credit, Extend Unemployment Insurance Benefits, And Provide Business Tax Relief To Stimulate The Economy

Press Release

Today, U.S. Representative Martin Heinrich (NM-1) voted to pass a bill that will stimulate the economy and provide stability to American families by extending unemployment benefits to those hit hardest by the recession, the homebuyer tax credit, and tax relief for military families and businesses.

H.R. 3548, the Unemployment Compensation Extension Act, includes an extension of the $8,000 first-time homebuyer tax credit through April 30, 2010 and provides a $6,500 credit to new purchasers who have lived in their current residence for five years or more. It also helps military families struggling to make mortgage payments by making those payments tax-exempt.

"This extension is fully paid for and will provide immediate, effective stimulus to the local economy," said Rep. Heinrich. "Extending the tax credit for first-time homebuyers expands the universe of potential purchasers, and strengthens our housing market."

To breathe life back into American businesses suffering from huge losses, this bill allows U.S. companies to carry back losses incurred in either 2008 or 2009 against income earned in any of the five prior years.

The legislation will also provide New Mexico's families 14 more weeks of unemployment benefits. The Congressional Budget Office has cited unemployment benefits as one of the most cost-effective forms of economic stimulus, and every dollar spent on unemployment benefits generates $1.63 in new demand, according to Mark Zandi, chief economist of Moody's Economy.com.

"While we continue working to turn this economy around, this extension will provide much-needed relief to New Mexicans while they're in-between jobs," said Rep. Heinrich.

H.R. 3548 passed the U.S. House of Representatives by a vote of 403 to 12 and clears the measure for the president, who is expected to sign the bill into law.

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