The House and President Bush have agreed on a plan that will hopefully keep the country out of a recession. What does it entail? Tax rebates for home owners, tax reductions for businesses and easier access to home loans.
The tax rebates would range from $300 to $1200 depending on how much money a household makes a year. There are also additions of up to $300 per child. These rebates would simply come to you in the mail sometime in May. No need to apply for them, they would be automatic.
Tax reductions for businesses would include a 50% bonus depreciation on new equipment and increases the amount of money the businesses can write-off.
Easier access to home loans will be accomplished by temporarily increasing the loan limits for Fannie Mae and Freddie Mac programs up to $730,000 in expensive areas in the country such as Seattle. This will also allow more people with subprime mortgages the ability to refinance using the federal loan programs. The bill will also permanently increase the loan limits for FHA backed loans to $730,000.
However, the Senate still needs to draft its own version of the plan, but if they can provide a final package to the President by mid February the plan will go into effect by mid-May.
Stay tuned.
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