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What's in the Stimulus Bill


ENERGY

• $30 billion for a smart power grid, advanced battery technology, and energy efficiency measures.

• $20 billion in tax incentives for renewable energy and energy efficiency over the next 10 years.

• A three-year extension of the production tax credit for electricity derived from wind (through 2012) and for electricity derived from biomass, geothermal, hydropower, landfill gas, waste-to-energy, and marine facilities (through 2013).

• Grants of up to 30% of the cost of building a new renewable energy facility to address current renewable energy credit market concerns.

• Extended tax credits, through 2010, for such purchases as new furnaces, energy-efficient windows and doors, or insulation.

• Tax credits for families that purchase plug-in hybrid vehicles of up to $7,500.

• Clean renewable energy bonds for state and local governments.

• Manufacturing investment tax credit for investment in advanced energy facilities, such as those that manufacture components for the production of renewable energy and advanced battery technology.

• $5 billion to improve the energy efficiency of more than 1 million homes.

• $6.3 billion for increasing energy efficiency in federally supported housing programs.

SCIENCE AND RESEARCH

• $3 billion for the National Science Foundation for basic research in fundamental science and engineering.

• $1.6 billion for the Energy Dept.'s Office of Science, which funds research in such areas as climate science, biofuels, high-energy physics, nuclear physics, and fusion energy sciences—areas crucial to our energy future.

• $400 million for the Advanced Research Project Agency-Energy to support high-risk, high-payoff research into energy sources and energy efficiency in collaboration with industry.

• $580 million for the National Institute of Standards & Technology, including the Technology Innovation Program and the Manufacturing Extension Partnership.

• $8.5 billion for the National Institutes of Health, including expanding good jobs in biomedical research to study diseases such as Alzheimer's, Parkinson's, cancer, and heart disease.

• $1.5 billion for NIH to renovate university research facilities.

• $1 billion for the National Aeronautics & Space Administration, including $400 million to put more scientists to work doing climate change research.

BROADBAND

• $7 billion for extending broadband services to underserved communities.

HEALTH-CARE COSTS AND COVERAGE

• $19 billion to accelerate adoption of Health Information Technology systems by doctors and hospitals.

• $87 billion over the next two years in additional federal matching funds to help states maintain Medicaid programs.

• 60% subsidy for COBRA premiums for up to nine months. Currently, laid-off workers can buy into their former employer's health insurance, but the premiums are often prohibitively expensive.

• $1 billion for a new Prevention & Wellness Fund.

• $1.1 billion for comparative effectiveness research, to help patients and doctors determine the effectiveness of different treatments.

EDUCATION AND CHILDHOOD DEVELOPMENT

• $53.6 billion for a State Fiscal Stabilization Fund—$40.6 billion to local school districts, which can be used for preventing cutbacks, preventing layoffs, school modernization, and other purposes; $5 billion as bonus grants for meeting key performance measures; and $8 billion for public safety and other services.

• Higher education tax credit increased to a maximum of $2,500, and makes it available to nearly 4 million low-income students by making it partially refundable

• Increases the maximum Pell Grant by $500, for a maximum of $5,350 in 2009 and $5,550 in 2010.

• $200 million added to the College Work-Study program.

• $1.1 billion for Early Head Start.

• $1 billion for Head Start.

• $2 billion for the Child Care Development Block Grant to provide child care services to an additional 300,000 children in low-income families while their parents go to work.

• $13 billion for Title I grants to help disadvantaged kids reach high academic standards.

• $12.2 billion for special education grants.

ROADS, BRIDGES, TRANSIT, WATER

• $29 billion for modernizing roads and bridges. States must obligate at least half of the funding within 120 days.

• $8.4 billion for investments in transit.

• $8 billion for investment in high-speed rail.

• $18 billion for clean water, flood control, and environmental restoration investments.

• $5 billion for improvements in Defense Dept. facilities.

• $4.5 billion to make federal office buildings more energy-efficient.

TAX CUTS, INDIVIDUALS

• Refundable tax credit of up to $400 per worker ($800 per couple filing jointly), phasing out completely at $200,000 for couples filing jointly and $100,000 for single filers.

• Child tax credit expanded to allow families to begin qualifying for the child tax credit with every dollar earned over $3,000.

• Earned Income Tax Credit expanded by providing tax relief to families with three or more children and increasing marriage penalty relief.

• New, partially refundable $2,500 tax credit for families.

• Suspends the Alternative Minimum Tax for 26 million families.

• $8,000 tax credit for first-time homebuyers on homes bought from Jan. 1 through Dec. 1, with no repayment requirement.

• Tax deduction for state and local sales taxes paid on purchase of new cars, light trucks.

• Temporarily suspends taxation of some unemployment benefits.

TAX CUTS, BUSINESSES

• Extends the bonus depreciation and increases small business expensing for investments in plants and equipment in 2009.

• Extends to small businesses expensing for investment in new plants and equipment, loss carry back, a delay of the 3% withholding tax on payments to businesses that sell goods or services to governments, and a cut in the capital gains tax cut for investors in small businesses who hold stock for more than five years.

• Delays the tax on businesses that have discharged indebtedness.

• Tax credits for hiring recently discharged unemployed veterans and youth that have been out of work and out of school for the six months prior to hire.

• New bond-financing program for school construction, rehabilitation, and repair.

UNEMPLOYMENT ASSISTANCE

• Continues through December the extended unemployment benefits program (which provides up to 33 weeks of extended benefits) that is otherwise scheduled to begin to phase out at the end of March.

• Increases unemployment benefits for 20 million jobless workers by $25 per week.

• Increases food stamp benefits by 13%.

• $100 million for Emergency Food & Shelter to help local community organizations provide food and shelter; $100 million for formula grants to states for elderly nutrition services including Meals on Wheels; and $150 million for the Emergency Food Assistance Program to purchase commodities for food banks to refill emptying shelves.

• $4 billion for job training including formula grants for adult job training, dislocated worker job training, and youth services (including funding for summer jobs for young people).

• $500 million for Vocational Rehabilitation State Grants to help persons with disabilities.

• $500 million to match unemployed individuals to job openings.

• $120 million to provide community service jobs to an additional 24,000 low-income older Americans.

AID TO SENIORS, DISABLED VETERANS

• Payment of $250 to Social Security beneficiaries, as well as veterans receiving disability compensation and pension benefits from the Veterans Affairs.

Herbst is a reporter for BusinessWeek in New York.


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