[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5140 Enrolled Bill (ENR)]
H.R.5140
One Hundred Tenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Thursday,
the third day of January, two thousand and eight
An Act
To provide economic stimulus through recovery rebates to individuals,
incentives for business investment, and an increase in conforming and
FHA loan limits.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) 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
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)--
``(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
``(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. 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 is amended by striking ``and 53(e)''
and inserting ``53(e), and 6428''.
(2) Mathematical or clerical error authority.--Section
6213(g)(2)(L) of such Code is amended by striking ``or 32'' and
inserting ``32, or 6428''.
(c) Treatment of Possessions.--
(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.--Any credit or refund allowed or made
to any individual by reason of section 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 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.''.
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 (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.--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--
(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 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.--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 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.--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 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 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.
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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.