[110th Congress Public Law 185]
[From the U.S. Government Printing Office]
[DOCID: f:publ185.110]
[[Page 122 STAT. 613]]
Public Law 110-185
110th Congress
An Act
To provide economic stimulus through recovery rebates to individuals,
incentives for business investment, and an increase in conforming and
FHA loan limits. <<NOTE: Feb. 13, 2008 - [H.R. 5140]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Economic
Stimulus Act of 2008.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 26 USC 1 note.>> Short Title.--This Act may be cited as
the ``Economic Stimulus Act of 2008''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--RECOVERY REBATES AND INCENTIVES FOR BUSINESS INVESTMENT
Sec. 101. 2008 recovery rebates for individuals.
Sec. 102. Temporary increase in limitations on expensing of certain
depreciable business assets.
Sec. 103. Special allowance for certain property acquired during 2008.
TITLE II--HOUSING GSE AND FHA LOAN LIMITS
Sec. 201. Temporary conforming loan limit increase for Fannie Mae and
Freddie Mac.
Sec. 202. Temporary loan limit increase for FHA.
TITLE III--EMERGENCY DESIGNATION
Sec. 301. Emergency designation.
TITLE I--RECOVERY REBATES AND INCENTIVES FOR BUSINESS INVESTMENT
SEC. 101. 2008 RECOVERY REBATES FOR INDIVIDUALS.
(a) In General.--Section 6428 of the Internal Revenue Code of
1986 <<NOTE: 26 USC 6428.>> is amended to read as follows:
``SEC. 6428. 2008 RECOVERY REBATES FOR INDIVIDUALS.
``(a) In General.--In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by subtitle A for
the first taxable year beginning in 2008 an amount equal to the lesser
of--
``(1) net income tax liability, or
``(2) $600 ($1,200 in the case of a joint return).
``(b) Special Rules.--
``(1) In general.--In the case of a taxpayer described in
paragraph (2)--
[[Page 122 STAT. 614]]
``(A) the amount determined under subsection (a)
shall not be less than $300 ($600 in the case of a joint
return), and
``(B) the amount determined under subsection (a)
(after the application of subparagraph (A)) shall be
increased by the product of $300 multiplied by the
number of qualifying children (within the meaning of
section 24(c)) of the taxpayer.
``(2) Taxpayer described.--A taxpayer is described in this
paragraph if the taxpayer--
``(A) has qualifying income of at least $3,000, or
``(B) has--
``(i) net income tax liability which is
greater than zero, and
``(ii) gross income which is greater than the
sum of the basic standard deduction plus the
exemption amount (twice the exemption amount in
the case of a joint return).
``(c) Treatment of Credit.--The credit allowed by subsection (a)
shall be treated as allowed by subpart C of part IV of subchapter A of
chapter 1.
``(d) Limitation Based on Adjusted Gross Income.--The amount of the
credit allowed by subsection (a) (determined without regard to this
subsection and subsection (f)) shall be reduced (but not below zero) by
5 percent of so much of the taxpayer's adjusted gross income as exceeds
$75,000 ($150,000 in the case of a joint return).
``(e) Definitions.--For purposes of this section--
``(1) Qualifying income.--The term `qualifying income'
means--
``(A) earned income,
``(B) social security benefits (within the meaning
of section 86(d)), and
``(C) any compensation or pension received under
chapter 11, chapter 13, or chapter 15 of title 38,
United States Code.
``(2) Net income tax liability.--The term `net income tax
liability' means the excess of--
``(A) the sum of the taxpayer's regular tax
liability (within the meaning of section 26(b)) and the
tax imposed by section 55 for the taxable year, over
``(B) the credits allowed by part IV (other than
section 24 and subpart C thereof) of subchapter A of
chapter 1.
``(3) Eligible individual.--The term `eligible individual'
means any individual other than--
``(A) any nonresident alien individual,
``(B) any individual with respect to whom a
deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar
year in which the individual's taxable year begins, and
``(C) an estate or trust.
``(4) Earned income.--The term `earned income' has the
meaning set forth in section 32(c)(2) except that--
``(A) subclause (II) of subparagraph (B)(vi) thereof
shall be applied by substituting `January 1, 2009' for
`January 1, 2008', and
[[Page 122 STAT. 615]]
``(B) such term shall not include net earnings from
self-employment which are not taken into account in
computing taxable income.
``(5) Basic standard deduction; exemption amount.--The terms
`basic standard deduction' and `exemption amount' shall have the
same respective meanings as when used in section 6012(a).
``(f) Coordination With Advance Refunds of Credit.--
``(1) In general.--The amount of credit which would (but for
this paragraph) be allowable under this section shall be reduced
(but not below zero) by the aggregate refunds and credits made
or allowed to the taxpayer under subsection (g). Any failure to
so reduce the credit shall be treated as arising out of a
mathematical or clerical error and assessed according to section
6213(b)(1).
``(2) Joint returns.--In the case of a refund or credit made
or allowed under subsection (g) with respect to a joint return,
half of such refund or credit shall be treated as having been
made or allowed to each individual filing such return.
``(g) Advance Refunds and Credits.--
``(1) In general.--Each individual who was an eligible
individual for such individual's first taxable year beginning in
2007 shall be treated as having made a payment against the tax
imposed by chapter 1 for such first taxable year in an amount
equal to the advance refund amount for such taxable year.
``(2) Advance refund amount.--For purposes of paragraph (1),
the advance refund amount is the amount that would have been
allowed as a credit under this section for such first taxable
year if this section (other than subsection (f) and this
subsection) had applied to such taxable year.
``(3) Timing of payments.--The Secretary shall, subject to
the provisions of this title, refund or credit any overpayment
attributable to this section as rapidly as
possible. <<NOTE: Deadline.>> No refund or credit shall be made
or allowed under this subsection after December 31, 2008.
``(4) No interest.--No interest shall be allowed on any
overpayment attributable to this section.
``(h) Identification Number Requirement.--
``(1) In general.--No credit shall be allowed under
subsection (a) to an eligible individual who does not include on
the return of tax for the taxable year--
``(A) such individual's valid identification number,
``(B) in the case of a joint return, the valid
identification number of such individual's spouse, and
``(C) in the case of any qualifying child taken into
account under subsection (b)(1)(B), the valid
identification number of such qualifying child.
``(2) Valid identification number.--For purposes of
paragraph (1), the term `valid identification number' means a
social security number issued to an individual by the Social
Security Administration. Such term shall not include a TIN
issued by the Internal Revenue Service.''.
(b) Administrative Amendments.--
(1) Definition of deficiency.--Section 6211(b)(4)(A) of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 6211.>> is amended
by striking ``and 53(e)'' and inserting ``53(e), and 6428''.
[[Page 122 STAT. 616]]
(2) Mathematical or clerical error authority.--Section
6213(g)(2)(L) of such Code <<NOTE: 26 USC 6213.>> is amended by
striking ``or 32'' and inserting ``32, or 6428''.
(c) Treatment of Possessions.-- <<NOTE: 26 USC 6428 note.>>
(1) Payments to possessions.--
(A) Mirror code possession.--The Secretary of the
Treasury shall make a payment to each possession of the
United States with a mirror code tax system in an amount
equal to the loss to that possession by reason of the
amendments made by this section. Such amount shall be
determined by the Secretary of the Treasury based on
information provided by the government of the respective
possession.
(B) Other possessions.--The Secretary of the
Treasury shall make a payment to each possession of the
United States which does not have a mirror code tax
system in an amount estimated by the Secretary of the
Treasury as being equal to the aggregate benefits that
would have been provided to residents of such possession
by reason of the amendments made by this section if a
mirror code tax system had been in effect in such
possession. The preceding sentence shall not apply with
respect to any possession of the United States unless
such possession has a plan, which has been approved by
the Secretary of the Treasury, under which such
possession will promptly distribute such payment to the
residents of such possession.
(2) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United States
income taxes under section 6428 of the Internal Revenue Code of
1986 (as amended by this section) to any person--
(A) to whom a credit is allowed against taxes
imposed by the possession by reason of the amendments
made by this section, or
(B) who is eligible for a payment under a plan
described in paragraph (1)(B).
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection, the term ``possession of the United
States'' includes the Commonwealth of Puerto Rico and
the Commonwealth of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States, the
income tax system of such possession if the income tax
liability of the residents of such possession under such
system is determined by reference to the income tax laws
of the United States as if such possession were the
United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same
manner as a refund due from the credit allowed under
section 6428 of the Internal Revenue Code of 1986 (as
amended by this section).
(d) Refunds Disregarded in the Administration of Federal Programs
and Federally Assisted Programs. <<NOTE: 26 USC 6428 note.>> --Any
credit or refund allowed or made to any individual by reason of section
[[Page 122 STAT. 617]]
6428 of the Internal Revenue Code of 1986 (as amended by this section)
or by reason of subsection (c) of this section shall not be taken into
account as income and shall not be taken into account as resources for
the month of receipt and the following 2 months, for purposes of
determining the eligibility of such individual or any other individual
for benefits or assistance, or the amount or extent of benefits or
assistance, under any Federal program or under any State or local
program financed in whole or in part with Federal funds.
(e) Appropriations To Carry Out Rebates.--
(1) In general.--Immediately upon the enactment of this Act,
the following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2008:
(A) Department of the treasury.--
(i) For an additional amount for ``Department
of the Treasury--Financial Management Service--
Salaries and Expenses'', $64,175,000, to remain
available until September 30, 2009.
(ii) For an additional amount for ``Department
of the Treasury--Internal Revenue Service--
Taxpayer Services'', $50,720,000, to remain
available until September 30, 2009.
(iii) For an additional amount for
``Department of the Treasury--Internal Revenue
Service--Operations Support'', $151,415,000, to
remain available until September 30, 2009.
(B) Social security administration.--For an
additional amount for ``Social Security Administration--
Limitation on Administrative Expenses'', $31,000,000, to
remain available until September 30, 2008.
(2) Reports.--No later than 15 days after enactment of this
Act, the Secretary of the Treasury shall submit a plan to the
Committees on Appropriations of the House of Representatives and
the Senate detailing the expected use of the funds provided by
paragraph (1)(A). Beginning 90 days after enactment of this Act,
the Secretary of the Treasury shall submit a quarterly report to
the Committees on Appropriations of the House of Representatives
and the Senate detailing the actual expenditure of funds
provided by paragraph (1)(A) and the expected expenditure of
such funds in the subsequent quarter.
(f) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or 6428'' after ``section
35''.
(2) Paragraph (1) of section 1(i) of the Internal Revenue
Code of 1986 <<NOTE: 26 USC 1.>> is amended by striking
subparagraph (D).
(3) The item relating to section 6428 in the table of
sections for subchapter B of chapter 65 of such Code is amended
to read as follows:
``Sec. 6428. 2008 recovery rebates for individuals.''.
[[Page 122 STAT. 618]]
SEC. 102. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN
DEPRECIABLE BUSINESS ASSETS.
(a) In General.--Subsection (b) of section 179 of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 179.>> (relating to limitations) is
amended by adding at the end the following new paragraph:
``(7) Increase in limitations for 2008.--In the case of any
taxable year beginning in 2008--
``(A) the dollar limitation under paragraph (1)
shall be $250,000,
``(B) the dollar limitation under paragraph (2)
shall be $800,000, and
``(C) the amounts described in subparagraphs (A) and
(B) shall not be adjusted under paragraph (5).''.
(b) Effective Date.-- <<NOTE: 26 USC 179 note.>> The amendment made
by this section shall apply to taxable years beginning after December
31, 2007.
SEC. 103. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2008.
(a) In General.--Subsection (k) of section 168 of the Internal
Revenue Code of 1986 (relating to special allowance for certain property
acquired after September 10, 2001, and before January 1, 2005) is
amended--
(1) by striking ``September 10, 2001'' each place it appears
and inserting ``December 31, 2007'',
(2) by striking ``September 11, 2001'' each place it appears
and inserting ``January 1, 2008'',
(3) by striking ``January 1, 2005'' each place it appears
and inserting ``January 1, 2009'', and
(4) by striking ``January 1, 2006'' each place it appears
and inserting ``January 1, 2010''.
(b) 50 Percent Allowance.--Subparagraph (A) of section 168(k)(1) of
such Code is amended by striking ``30 percent'' and inserting ``50
percent''.
(c) Conforming Amendments.--
(1) Subclause (I) of section 168(k)(2)(B)(i) of such Code is
amended by striking ``and (iii)'' and inserting ``(iii), and
(iv)''.
(2) Subclause (IV) of section 168(k)(2)(B)(i) of such Code
is amended by striking ``clauses (ii) and (iii)'' and inserting
``clause (iii)''.
(3) Clause (i) of section 168(k)(2)(C) of such Code is
amended by striking ``and (iii)'' and inserting ``, (iii), and
(iv)''.
(4) Clause (i) of section 168(k)(2)(F) of such Code is
amended by striking ``$4,600'' and inserting ``$8,000''.
(5)(A) Subsection (k) of section 168 of such Code is amended
by striking paragraph (4).
(B) Clause (iii) of section 168(k)(2)(D) of such Code is
amended by striking the last sentence.
(6) Paragraph (4) of section 168(l) of such Code is amended
by redesignating subparagraphs (A), (B), and (C) as
subparagraphs (B), (C), and (D) and inserting before
subparagraph (B) (as so redesignated) the following new
subparagraph:
``(A) Bonus depreciation property under subsection
(k).--Such term shall not include any property to which
section 168(k) applies.''.
(7) Paragraph (5) of section 168(l) of such Code is
amended--
[[Page 122 STAT. 619]]
(A) by striking ``September 10, 2001'' in
subparagraph (A) and inserting ``December 31, 2007'',
and
(B) by striking ``January 1, 2005'' in subparagraph
(B) and inserting ``January 1, 2009''.
(8) Subparagraph (D) of section 1400L(b)(2) of
such <<NOTE: 26 USC 1400L.>> Code is amended by striking
``January 1, 2005'' and inserting ``January 1, 2010''.
(9) Paragraph (3) of section 1400N(d) of such Code is
amended--
(A) by striking ``September 10, 2001'' in
subparagraph (A) and inserting ``December 31, 2007'',
and
(B) by striking ``January 1, 2005'' in subparagraph
(B) and inserting ``January 1, 2009''.
(10) Paragraph (6) of section 1400N(d) of such Code is
amended by adding at the end the following new subparagraph:
``(E) Exception for bonus depreciation property
under section 168(k).--The term `specified Gulf
Opportunity Zone extension property' shall not include
any property to which section 168(k) applies.''.
(11) The heading for subsection (k) of section 168 of such
Code is amended--
(A) by striking ``September 10, 2001'' and inserting
``December 31, 2007'', and
(B) by striking ``January 1, 2005'' and inserting
``January 1, 2009''.
(12) The heading for clause (ii) of section 168(k)(2)(B) of
such Code is amended by striking ``pre-january 1, 2005'' and
inserting ``pre-january 1, 2009''.
(d) Effective Date.-- <<NOTE: 26 USC 168 note.>> The amendments made
by this section shall apply to property placed in service after December
31, 2007, in taxable years ending after such date.
TITLE II--HOUSING GSE AND FHA LOAN LIMITS
SEC. 201. TEMPORARY CONFORMING LOAN LIMIT INCREASE FOR FANNIE MAE AND
FREDDIE MAC.
(a) Increase of High Cost Areas Limits for Housing GSEs.--For
mortgages originated during the period beginning on July 1, 2007, and
ending at the end of December 31, 2008:
(1) Fannie mae.--With respect to the Federal National
Mortgage Association, notwithstanding section 302(b)(2) of the
Federal National Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)), the limitation on the maximum original principal
obligation of a mortgage that may be purchased by the
Association shall be the higher of--
(A) the limitation for 2008 determined under such
section 302(b)(2) for a residence of the applicable
size; or
(B) 125 percent of the area median price for a
residence of the applicable size, but in no case to
exceed 175 percent of the limitation for 2008 determined
under such section 302(b)(2) for a residence of the
applicable size.
(2) Freddie mac.--With respect to the Federal Home Loan
Mortgage Corporation, notwithstanding section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)), the limitation on the maximum original principal
[[Page 122 STAT. 620]]
obligation of a mortgage that may be purchased by the
Corporation shall be the higher of--
(A) the limitation determined for 2008 under such
section 305(a)(2) for a residence of the applicable
size; or
(B) 125 percent of the area median price for a
residence of the applicable size, but in no case to
exceed 175 percent of the limitation determined for 2008
under such section 305(a)(2) for a residence of the
applicable size.
(b) Determination of Limits.--The areas and area median prices used
for purposes of the determinations under subsection (a) shall be the
areas and area median prices used by the Secretary of Housing and Urban
Development in determining the applicable limits under section 202 of
this title.
(c) Rule of Construction.--A mortgage originated during the period
referred to in subsection (a) that is eligible for purchase by the
Federal National Mortgage Association or the Federal Home Loan Mortgage
Corporation pursuant to this section shall be eligible for such purchase
for the duration of the term of the mortgage, notwithstanding that such
purchase occurs after the expiration of such period.
(d) Effect on Housing Goals.--Notwithstanding any other provision of
law, mortgages purchased in accordance with the increased maximum
original principal obligation limitations determined pursuant to this
section shall not be considered in determining performance with respect
to any of the housing goals established under section 1332, 1333, or
1334 of the Housing and Community Development Act of 1992 (12 U.S.C.
4562-4), and shall not be considered in determining compliance with such
goals pursuant to section 1336 of such Act (12 U.S.C. 4566) and
regulations, orders, or guidelines issued thereunder.
(e) Sense of Congress.--It is the sense of the Congress that the
securitization of mortgages by the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation plays an important role
in providing liquidity to the United States housing markets. Therefore,
the Congress encourages the Federal National Mortgage Association and
the Federal Home Loan Mortgage Corporation to securitize mortgages
acquired under the increased conforming loan limits established in this
section, to the extent that such securitizations can be effected in a
timely and efficient manner that does not impose additional costs for
mortgages originated, purchased, or securitized under the existing
limits or interfere with the goal of adding liquidity to the market.
SEC. 202. TEMPORARY LOAN LIMIT INCREASE FOR FHA.
(a) Increase of High-Cost Area Limit.-- <<NOTE: Deadline.>> For
mortgages for which the mortgagee has issued credit approval for the
borrower on or before December 31, 2008, subparagraph (A) of section
203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)(A)) shall be
considered (except for purposes of section 255(g) of such Act (12 U.S.C.
1715z-20(g))) to require that a mortgage shall involve a principal
obligation in an amount that does not exceed the lesser of--
(1) in the case of a 1-family residence, 125 percent of the
median 1-family house price in the area, as determined by the
Secretary; and in the case of a 2-, 3-, or 4-family residence,
the percentage of such median price that bears the same ratio to
such median price as the dollar amount limitation
[[Page 122 STAT. 621]]
determined for 2008 under section 305(a)(2) of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a 2-,
3-, or 4-family residence, respectively, bears to the dollar
amount limitation determined for 2008 under such section for a
1-family residence; or
(2) 175 percent of the dollar amount limitation determined
for 2008 under such section 305(a)(2) for a residence of the
applicable size (without regard to any authority to increase
such limitation with respect to properties located in Alaska,
Guam, Hawaii, or the Virgin Islands);
except that the dollar amount limitation in effect under this subsection
for any size residence for any area shall not be less than the greater
of: (A) the dollar amount limitation in effect under such section
203(b)(2) for the area on October 21, 1998; or (B) 65 percent of the
dollar amount limitation determined for 2008 under such section
305(a)(2) for a residence of the applicable size. Any reference in this
subsection to dollar amount limitations in effect under section
305(a)(2) of the Federal Home Loan Mortgage Corporation Act means such
limitations as in effect without regard to any increase in such
limitation pursuant to section 201 of this title.
(b) Discretionary Authority.--If the Secretary of Housing and Urban
Development determines that market conditions warrant such an increase,
the Secretary may, for the period that begins upon the date of the
enactment of this Act and ends at the end of the date specified in
subsection (a), increase the maximum dollar amount limitation determined
pursuant to subsection (a) with respect to any particular size or sizes
of residences, or with respect to residences located in any particular
area or areas, to an amount that does not exceed the maximum dollar
amount then otherwise in effect pursuant to subsection (a) for such size
residence, or for such area (if applicable), by not more than $100,000.
(c) Publication of Area Median Prices and Loan Limits.--The
Secretary of <<NOTE: Deadline.>> Housing and Urban Development shall
publish the median house prices and mortgage principal obligation
limits, as revised pursuant to this section, for all areas as soon as
practicable, but in no case more than 30 days after the date of the
enactment of this Act. With respect to existing areas for which the
Secretary has not established area median prices before such date of
enactment, the Secretary may rely on existing commercial data in
determining area median prices and calculating such revised principal
obligation limits.
[[Page 122 STAT. 622]]
TITLE III--EMERGENCY DESIGNATION
SEC. 301. EMERGENCY DESIGNATION.
For purposes of Senate enforcement, all provisions of this Act are
designated as emergency requirements and necessary to meet emergency
needs pursuant to section 204 of S. Con. Res. 21 (110th Congress), the
concurrent resolution on the budget for fiscal year 2008.
Approved February 13, 2008.
LEGISLATIVE HISTORY--H.R. 5140:
---------------------------------------------------------------------------
CONGRESSIONAL RECORD, Vol. 154 (2008):
Jan. 29, considered and passed House.
Feb. 5, 6, considered and passed Senate, amended.
Feb. 7, House concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 44 (2008):
Feb. 13, Presidential remarks.
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