Speaking for Nevada - March 2008

How will the stimulus package boost Nevada’s economy?

Tax Credits Helping Families and Businesses

by Shelley Berkley

Decades of vibrant growth and the continued expansion of our economic base has made Nevada a great place to live, raise a family and run a business. Unfortunately, the arrival of 2008 has brought with it new concerns about the impact of record home foreclosure rates and rising mortgage prices, along with higher costs for goods and energy.

Like Americans all across the nation, Nevadans expressed their support for Congress to pass legislation giving our economy a quick boost. Working in a bipartisan fashion, Congress moved in early February to address these economic concerns with the passage of a bipartisan stimulus package.

In passing this legislation, Congress and the White House joined together to provide families and businesses with stimulus rebates that will put money into local economies all across the nation. Other incentives included in the legislation seek to create new jobs, spur equipment sales, and address mortgage and foreclosure issues.

In order to encourage more business investment, the bipartisan plan doubles the amount small businesses can immediately write off their taxes for capital investments made in 2008 from $125,000 to $250,000, for purchases of new equipment of up to $800,000 (from $500,000).

In addition, the package provides immediate tax relief for all businesses to invest in new plants and equipment by speeding up depreciation provisions. This will allow firms to write off an additional 50 percent for investments purchased in 2008.

The stimulus bill will also put hundreds of dollars into the hands of Nevadans who – along with more than 130 million American families – will receive a rebate check. The stimulus package will provide tax relief of up to $600 per individual and $1,200 per married couple, plus an additional $300 per child.

Rebates will also go to anyone who receives at least $3,000 in Social Security income, self-employment income or veterans’ disability payments (including payments to survivors of disabled veterans), enabling 20 million seniors and 250,000 disabled veterans to receive stimulus checks.

Here at home, 1.1 million Nevadans will collectively receive rebates valued at more than $1 billion under this legislation, with the average household in the Silver State set to receive a check totaling more than $900.

Finally, the package increases affordable refinancing opportunities and liquidity in the housing market. For 2008, the bill increases FHA loan limits up to $729,750. To enhance credit availability in the mortgage market, the measure includes an increase in the loan limits for single family homes from Fannie Mae and Freddie Mac – from $417,000 up to $729,750. The increase covers loans made between July 31, 2007, and December 31, 2008.

Two other key priorities for me, and ones that will help to spur economic growth, are the extension of important tax credits for business research and development and for clean energy production.

As a member of the House Ways and Means Committee, I have been working with my colleagues to extend the “Research and Development” tax credit. America must compete in a global economy and that requires companies to engage in cutting edge research and development. Extending the R and D tax credit will help to keep American businesses on the leading edge when it comes to selling the world new and innovative goods and services.

America also needs clean renewable energy and with greater investment, we can produce even more of those megawatts right here in Nevada. The Silver State is already fast becoming a world leader in the use of solar power and we continue to have an enormous geothermal energy potential which could one day power even more of our homes and businesses.

Extension of the “Renewable Energy” tax credit will reward those who produce power using the sun, wind, geothermal heat, biomass or other renewable resources. Investing in renewable power production will create new “green collar” jobs right here in America and will increase our nation’s energy independence.