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Stimulus Rebate

A Stimulus Rebate For You?

Tax Rebates in the stimulus bill

This bill, totals up to almost $800 billion in tax breaks, stimulus money and rebates.

The purpose is to help our ailing American economy and get more people working and spending money.

Want to have a better understanding of how President Obama's new stimulus rebates and how they will affect you? Read on for an overview of who will see what individuals and families will get from this huge block of government spending.

Couples and Individuals. Individual Americans will see a yearly tax credit of $400, and childless couples will get double that. Rather than an all-at-once tax rebate check, these tax credits will be spread out over 2009 (starting in June) and 2010, minimizing your federal income tax every month. As long as you make less than $100,000 as an individual or less than $200,000 as a couple, you will receive these credits (with some variations for under-$100,000 but still large income individuals) starting in June.

Low-income families. For low-income families with children, the amount that must be earned in order to qualify for a $1,000 tax credit has been lowered. Starting at $3,000, every dollar earned will help low-income families to qualify for the credit. This credit is also available to other families with three children or more.

Some middle class families (those with 3 or more children) will be eligible for the $1,000 child tax credit described above. In addition, almost 30 million middle-class families will see their Alternative Minimum Tax eliminated or reduced.

To help bear the burden of secondary education, families with children attending college may also qualify for a tax credit of as much as $2,500 to help cover the cost of tuition. This credit will run through 2009 and 2010.

The 2009 stimulus bill also has many benefits in it for consumers/buyers. If, for instance, you want to purchase a home for the first time, the stimulus bill will make it cheaper and more attractive to do so. Those purchasing first time homes will get an $8,000 tax credit (up $500 from the previous tax credit) if they buy their home before a set date, and will not be required to repay the tax credit once it's been given (a significant change from previous policies).

After purchasing their homes (or for existing homes), the stimulus bill also includes a credit for making that home greener and more cost-efficient. Homeowners who upgrade to energy-saving windows and air conditioning/heating will be eligible to receive 30% of their cost as a tax credit on their federal income tax.

Need a new furnace?

Uncle Sam has a stimulus rebate money or tax savings for that.

For years, the government has helped weatherize homes, but now since Obama has passed the 2009 Stimulus bill, more money is available to help people get the work done.

The Weatherization Assistance Program allows up to $6,500 per home in energy efficient upgrades for families making about $44,000 a year for a family of four.

Stimulus rebates and tax credits have tripled for energy-efficient home improvements. This is great news for many homeowners that are willing to make these improvements.

The list of big-ticket items it covers is long, some are: windows, outside doors, metal or asphalt roofs, heating and cooling equipment and fuel cell batteries, among others.

Think about the $1,500 you could save on next year's returns if you added extra insulation or a skylight.

If you were hoping it included the new Energy Star-rated refrigerator or washing machine you're considering purchasing you have to check with your own state.

Some state and local programs might give rebates on these purchases, but these high cost items are not necessarily included in the Federal package.

Check Energy Star's Web site, www.energystar.gov to find out which products qualify. The credit doesn't cover installation costs for most items.

This gets at the low-hanging fruit of energy efficiency measures that can be done for existing homes. This list includes weatherization, insulation, windows etc.

It is a good idea to improve your home's insulation first before tackling your heating and cooling systems. Otherwise, air will just leak out of the house.

Spray foam insulation that can be easily applied to the underside of an attic roof. The tax credit also includes updating your existing heating and cooling equipment, including furnaces, boilers and air conditioners.

Make sure your contractor breaks down bills, showing both labor costs and materials costs separately. Keep a copy of the receipt and the Manufacturer Certification Statement for your records. There are rebates and tax credits for most weatherization improvements, depending on your family income.

Check the Web site for the Database of State Incentives for Renewables & Efficiency, dsireusa.org, to find out what stimulus rebate programs states, cities and utilities offer.

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