Bipartisan growth package will help protect our nations economic health. We advise you to take any letters you receive regarding this bill and payment notifications skeptically. The most significant part of the act is the individual stimulus payment, which is a credit for tax year ty 2008. What does economic stimulus act of 2008 mean in finance. Economic stimulus act of 2008 wikisource, the free. Federal economic stimulus act of 2008 summary of business incentives the federal economic stimulus act of 2008 provides businesses with two tax incentives accelerated all in one year, 2008. February 2008 business tax provisions of the economic stimulus act of 2008 on february, 2008, the president signed h. The impact of the 2008 tax rebates on consumer spending. Economic stimulus act of 2008 congressional budget. Economic stimulus act of 2008 financial definition of. The economic stimulus act of 2008 and the american economic recovery and reinvestment act of 2009 where the latest big experiments the u. Economic stimulus act of 2008 publication economic stimulus act of 2008 february, 2008 on february, 2008, president bush signed into law the economic stimulus act of 2008 the act. A federal law that attempted to avoid or mitigate an economic recession.
Tax credits for individuals people who filed tax returns for either 2007 or 2008 could qualify for recovery rebates. The economic stimulus act esa of 2008 was passed in early that with just such a purpose. Economic stimulus act of 2008 congressional budget office. Economic stimulus act this report highlights the depreciation changes in the economic stimulus act of 2008 that affect taxpayers. Economic stimulus act of 2008 as cleared by the congress on february 7, 2008 summary h.
The house and senate on february 7, 2008 passed the economic stimulus act of 2008. The economic stimulus act of 2008 contains two provisions that provide tax benefits for businesses. The act has been highly publicized and its intended effect is to help stave off concerns of a recession by. The national bureau of economic research nber, in december 2008. These economic stimulus payments esps, as they came to. The economic stimulus act esa of 2008, enacted in february 2008, consisted primarily of a 100 billion dollar program that sent economic stimulus payments esps to approximately million u. Meaning of economic stimulus act of 2008 as a finance term.
Marchapril 2008 federal economic stimulus act of 2008 by jay wortley, senior economist, and david zin, economist the federal economic stimulus act of 2008 was passed by congress on february 7, 2008, and signed into law by president bush on february, 2008. With economists and economic indicators forecasting a recession for 2008, and in the midst of the subprime lending crisis, the economic stimulus act of 2008, p. The economic stimulus act of 2008,1 signed on february, 2008, was passed to energize the national economy. Economic stimulus act of 2008 the economic stimulus act of 2008 had three main parts.
Joint committee on taxation, description of the economic stimulus act of 2008 jcx808, january 28, 2008. Public law 110 185 economic stimulus act of 2008 content. The provision of interest to most taxpayers is the recovery rebate provision intended to deliver an expedited fiscal stimulus to the economy. However, the payments are being estimated using information reported. Protesters at vilsack announcement in ames 021 5954727792. Joint committee on taxation, technical explanation of the revenue provisions of h. House of representatives on january 29, 2008, and in a slightly different. Exceptions and special provisions are not covered, so you should consult your accounting and tax professionals for advice specific to your situation. The economic stimulus act of 2008 was signed into law on february, 2008. Economic stimulus act of 2008 government publishing office. The act provides tax rebates for low and middleincome us taxpayers, and. Business tax provisions of the economic stimulus act of 2008. Business provisions of the economic stimulus act of 2008. The act increases the expensing allowance for depreciable business assets and reinstitutes bonus depreciation.
The desirability of this historicallyimportant use of fiscal policy depends critically on. This filing requirement applies to some people who do not normally file, including many lowincome households and recipients of social security, certain. Consumer spending and the economic stimulus payments of 2008. The act provides several kinds of stimulus intended to boost the us economy in 2008 and to avoid or lessen an economic recession. Economic stimulus act of 2008 wex us law lii legal. The first provision increases the limit up to which a business. The economic stimulus act of 2008 did not alter any of the offset authority under the law in effect at the time. Economic stimulus act of 2008 oklahoma public employees. Aassessing the macro ssessing the macro eeconomic impact. You must file a federal tax return for 2007 to be eligible for the stimulus payment.
Stimulus act esa of 2008, enacted in february 2008, consisted primarily of a 100 billion dollar program that sent economic stimulus payments. The economic stimulus act of 2008 will provide million u. The act is intended to stimulate consumer spending in 2008, and features taxpayer rebate checks for more than million individuals, as well as increased small business expense and depreciation limits, and increased loan limits for fannie mae, freddie mac. Recovery rebates and incentives for business investment sec. The economic stimulus act also increased the total amount of qualifying property. The american recovery and reinvestment act of 2009 arra, p. Section 6428 of the internal revenue code of 1986 is amended to read as.
The economic stimulus act of 2008 physical therapy. State notes marchapril 2008 federal economic stimulus. Recall that the purpose of fiscal stimulus is to increase either ad or as with. The economic stimulus act of 2008 and the american. The purpose of this act is to provide a fiscal stimulus to the slumping u. Consumer spending and the economic stimulus payments of. It is informational only and not meant as accounting or tax advice. The 2008 stimulus package increased the deficit by about 1% of gdp. As such, any overpayment resulting from the recovery rebate credit was subject to the refund offset provisions for tax debts and for certain nontax debts. Administration enacted the economic stimulus act of 2008 in february. Definition of economic stimulus act of 2008 in the financial dictionary by free online english dictionary and encyclopedia.
They designed the act to counteract a short recession by providing temporary support to consumer spending, but it was not sufficient to reverse the emerging distress and, by design, did not have longlasting effects. Economic stimulus act of 2008 how is economic stimulus. This document,1 prepared by the staff of the joint committee on taxation, provides a description of the economic stimulus act of 2008. Bush signed into law the economic stimulus act of 2008, which provides for economic stimulus payments to be made to over million american households. Media in category economic stimulus act of 2008 the following 3 files are in this category, out of 3 total. Volume 14 issue 1 2008 2008 economic stimulus act while individual tax rebates have received the most media attention, the business incentives could prove to be particularly advantageous for a range of business entities. Im pleased to be joined by leaders of both parties to enact an economic. The act was signed by president bush on february, 2008.
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