The following were enacted during 2009:

The American Recovery and Reinvestment Act of 2009 (ARRA) includes the following:

• Making Work Pay Credit
• Modifications to the First Time Homebuyer Credit
• New vehicle sales tax deduction
• Extends eligibility for the HOPE credit to four years of college (and renames it to the "American Opportunity Tax Credit")
• Increases the refundable portion of the Child Tax Credit
• Increased the Earned Income Tax Credit
• Provides COBRA premium assistance for unemployed persons
• Excludes the first $2,400 of unemployment benefits from federal income taxes
• Provides a higher exclusion amount for transportation fringe benefits
• Provides energy tax incentives

The Pension Protection Act (PPA) of 2009

• Gave retired public safety employees a special tax break to help pay for health insurance coverage

The Consumer Assistance to Recycle and Save Act  (CARS) - also known as "Cash for Clunkers"

As a reminder, the following were enacted during 2008:

1. The Economic Stimulus Act of 2008 - provided one-time "stimulus payments" for qualifying individuals and households
2. The Housing and Economic Recovery Act of 2008 - provides qualifying first time homebuyers a credit, and now allows non-itemizers to deduct state and local taxes
3. The Heroes Earnings Assistance and Relief Tax Act - provides tax incentives for military personnel who are receiving combat pay
4. The Emergency Economic Stabilization Act - provided yet another "patch" for the Alternative Minimum Tax (AMT), and extended adjustments or deductions for tuition, teacher's classroom expenses, state and local sales taxes, and charitable contributions of IRA proceeds.
5. The Heartland, Habitat, Harvest, and Horticulture Act - provides more than $1Billion in tax relief to farmers and ranchers
6. The Worker, Retiree, and Employer Recovery Act  (WRERA) suspended Required Minimum Distributions from retirement accounts for 2009.

 Contact me to arrange a briefing on these tax law changes.