These are challenging economic times for Hoosiers and working families across our country. The American Recovery and Reinvestment Act is designed to create or protect 3.5 million jobs and help to get our economy back on track. The bill combines tax relief for middle-class families and small businesses with smart investments in infrastructure, education, and energy efficiency. Below you will find information on this bill and how it can help you, your family and your community. Please don’t hesitate to contact my office at (574) 288-2780 should you have any further questions.

WHERE CAN I READ THE TEXT OF THE BILL?

To read the text of the bill, click here.


HOW CAN I TRACK THE MONEY THAT IS BEING SPENT?

Fiscal responsibility, transparency, and accountability are critical to the success of this legislation. For this reason, the recovery bill requires that every dollar spent be posted publicly on www.recovery.gov. Recovery.gov provides up-to-date information on how funds are being allocated, as well as the the tools necessary for you to hold our government accountable.


HOW WILL I BENEFIT FROM THE RECOVERY PACKAGE?

Make Work Pay Tax Cut
 Ninety-five percent of workers will benefit directly from a refundable tax credit of up to $400 per worker ($800 per couple filing jointly). Taxpayers can receive this benefit through a reduction in the amount of income tax that is withheld from their paychecks or by claiming the credit on their income tax returns.

Social Security/Disability Credit
For those who are not working, but receive Social Security, SSI, or veterans’ disability compensation through the VA, the bill provides a one-time payment of $250.

College Tuition Tax Credit
The American Opportunity Tax Credit provides a credit of up to $2,500 of the cost of tuition and related expenses.

Homebuyers Tax Credit
The provision provides first-time homebuyers with a credit of up to $8,000 for the purchase of a home and strengthens the housing market by providing additional incentives for first-time home purchases.

Sales Tax Deduction for Cars and Motor Homes
The bill provides all taxpayers with a deduction for state and local sales taxes and excise taxes on the purchase of new cars and motor homes.


I’M UNEMPLOYED. HOW WILL THE RECOVERY PACKAGE HELP ME?

Extension of Unemployment Benefits
The package continues the extended unemployment benefits program, which provides up to 33 weeks of extended unemployment benefits.

Improving Unemployment Benefits
The bill increases benefits by about $25 a week to help put more money in your pocket.

Health Insurance for Unemployed Workers
For workers who have lost their jobs, the legislation provides a 65 percent subsidy to cover COBRA payments for up to 9 months.

Job Training
The bill also directs $21.4 million to the State of Indiana to help dislocated workers find jobs or receive the necessary job training to get back to work.


HOW WILL THIS PACKAGE HELP LOCAL BUSINESSES?

Helps Businesses Invest in New Equipment
The bill helps businesses invest in new equipment by extending a 2008 tax provision that allows businesses to write-off fifty percent of the cost of depreciable property (e.g., equipment, tractors, wind turbines, solar panels, and computers).

Tax Incentives
The bill also extends the maximum Net Operating Loss carryback period from two years to five years for small businesses. This allows businesses to use losses from previous years to reduce tax liability during these difficult economic times.


HOW WILL THIS PACKAGE BENEFIT OUR LOCAL COMMUNITIES?

Investments in Infrastructure
The recovery package includes nearly $658,000,000 for the State of Indiana to improve its roads and bridges, and mass transit systems, all of which will strengthen our communities and create jobs.

Support to Law Enforcement
The legislation provides funding to local law enforcement agencies to create and protects jobs in order to prevent crime and keep our communities safe.

Improve our Water Infrastructure
The recovery bill contains $94,230,081 for clean water projects for the State of Indiana.

Stabilize the Housing Market
To help communities deal with the housing crisis, the bill provides $2 billion for the Neighborhood Stabilization Fund, which is designed to help communities purchase and rehabilitate foreclosed homes.


WHAT WILL THIS PACKAGE DO FOR OUR LOCAL SCHOOLS AND OUR CHILDREN’S EDUCATION?

Investments in Our Local Schools
The stimulus package will provide the State of Indiana with approximately $1.8 billion over the next two years to improve public education in our state. This money will be used to hire new teachers or prevent teacher layoffs as well to modernize schools.

Increases Pell Grant
The bill also increases the maximum Pell Grant by $500 to a maximum of $5,350 in 2009. 


View Recovery Projects in IN-02 in a larger map 


HOW CAN I GET RECOVERY FUNDS FOR MY COMMUNITY?

Visit www.recovery.gov to learn more about grant opportunities.

Contact my South Bend office at 574-288-2780 to let us know when you apply for a grant. We will do everything we can to help you through the process.