Washington, D.C.--Congressman Eliot Engel voted today to reinvigorate the local economy and provide stability to American families hardest hit by the recession. The House passed the Emergency Unemployment Compensation Extension Act, (H.R. 3548) by an overwhelming bipartisan vote of 403 to 12, which extends unemployment benefits, the homebuyers’ tax credit and tax relief for military families and businesses. It will provide immediate assistance and extend protection to millions of workers, families and businesses nationwide.

“This is another important step in providing immediate relief to struggling Americans who have lost, or on the verge of losing, their unemployment benefits. This not only helps them make ends meet, but also works towards getting our economy moving in the right direction. Families receiving these benefits will put money back into the local economy – buying groceries, filling their cars with gas, making mortgage payments – and contribute to lifting communities out of their financial hardships,” said Rep. Engel.

The legislation extends unemployment insurance by up to 14 additional weeks for jobless workers in every state, and a total of up to 20 weeks for workers in states with unemployment levels over 8.5 percent. New York’s is 8.9 percent which qualifies it for the extra six weeks of coverage. This provision will help more than 1.3 million jobless Americans whose benefits are set to expire by the end of the year and is fully paid for by an extension of the Federal Unemployment Tax Act (FUTA) through June 30, 2011. Almost 90,000 workers in New York will be eligible for this extension.

“This will provide immediate, effective stimulus to New York’s economy. The Congressional Budget Office has cited unemployment benefits as one of the most cost-effective forms of economic stimulus, and every dollar spent on unemployment benefits generates $1.63 in new demand, according to Moody’s chief economist Mark Zandi. Congress will continue to do whatever it takes to help families in need, and to spur economic growth in the states,” said Rep. Engel.

The bill also strengthens the domestic housing market by extending the $8,000 first-time homebuyer tax credit through April 30, 2010, allowing purchasers under a binding contract an additional 60 days to close after that date. Additionally, it will provide a $6,500 credit to new purchasers who have lived in their current residence for five years or more out of the previous eight years. The bill would also increase the income limits on the credit to $125,000 for individuals and $225,000 for joint filers (the current law credit phases out for individuals with income starting at $75,000 and for joint filers with income starting at $150,000). H.R. 3548 also makes critical improvements to administration of the homebuyer credit to crack down on potential abuses.

The bill will also eliminate the first-time homebuyers recapture requirement for military personnel, including members of the Foreign Service and intelligence community, who are forced to sell as a result of an official extended duty of service and will allow military personnel serving outside the United States at least 90 days in 2009 or 2010, one additional year to qualify for the credit.

“This legislation takes important immediate steps to help stabilize our small businesses and strengthen our housing market. This is crucial to growing our economy and putting it back on solid ground,” said Rep. Engel.