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What the Stimulus Means for Individuals & Families

American Recovery Stimulus Package

Congress and President Obama moved swiftly to craft an economic package designed to create or save 3.5 million jobs, cut taxes for 95% of workers and invest in an historic transformation of our economy. For the Commonwealth, the bill means the creation and preservation of 116,580 jobs, an $890 million transportation upgrade for projects like Dulles Rail and $800 million for local school construction.

At the national level here are a couple specific provisions that stand out:

• Homebuyers: First-time homebuyers who purchase this calendar year get an $8,000 tax credit. The credit phases out for people making more than $75,000 individually or $150,000 jointly. "First-time homebuyer" is defined as someone who has not owned a home for the past three years.
  
  
• Metro Commuters: Permitted to set aside $230 per month pretax for Metro rail and bus
  
  
• High-speed and inner-city rail: $8 billion allocated.
  
  
• Foreclosures: $2 billion for a neighborhood stabilization program that helps areas plagued with foreclosures by buying back properties to prevent blight.
  
  
• Car buyers: Customers can deduct the sales tax on a new car purchased in 2009. To qualify, buyer must make less than $125,000 individually or $250,000 jointly.
  
  
• College tax credits: Individuals making less than $80,000 or families making less than $160,000 can get up to $2,500 in tax credits for college tuition. Pell Grants will be increased to $5,350 for the next 2 years.
  
  
• Tax credits: Anyone making $75,000 individually or $150,000 as a family will get a refundable tax credit up to $400 per person or $800 per family.
  
  
• Retiree Tax Refund: Retirees and individuals on disability are eligible for a $250 tax refund in 2009.
  
  
• Oversight: To ensure taxpayer dollars are spent appropriately, the legislation created a board to oversee all stimulus spending. Hundreds of inspectors general will be tapped at the various government agencies to track spending decisions. Separately, President Obama created the www.recovery.gov website that provides the public full transparency and accountability of the process.

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