Washington, D.C. - This morning, Congressman Joe Donnelly praised congressional efforts to provide new property tax relief to homeowners who do not itemize their tax returns. The property tax provision is part of the American Housing Rescue and Foreclosure Prevention Act, which was signed into law today by the president.
“I’ve been working for over a year to get Hoosiers additional property tax relief,” Donnelly said. “In these trying economic times, in which many Hoosiers are struggling to make ends meet, Congress has an obligation to do whatever it can to help.”
Last year, Donnelly helped to introduce the property tax legislation that was signed into law today. The House version of the bill was authored by Representative Baron Hill of Indiana’s Ninth Congressional District and its Senate companion was authored by Senator Evan Bayh.
In past years, the 30 million homeowners who do not itemize their tax returns were unable to deduct any of their property tax bills from their federal taxes. The housing bill that was signed into law today creates a new standard deduction for property taxes of up to $500 for individuals and $1,000 for families.
An estimated one million Hoosier homeowners, and 30 million Americans nationwide, will be eligible for relief in the 2008 tax year.
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