It finished at about 1,100 pages and some of it was still in hand-written form when it was passed by the House and Senate. So, it's unlikely we will know all the details of the new stimulus plan for some time. However, there are a few nuggets I thought you might find interesting in this bill.
- Parents will be able to receive a tax credit of up to $2,500 for college costs. But, unlike in the past, these costs will include tuition and books. In the past only tuition was considered a qualifying expense.
- First-time home buyers may be eligible for an $8,000 tax credit. But, unlike the old law which allows a $7,500 credit that must be repaid within 15 years, this credit does not have to be repaid unless you sell your home within three years.
- Also, buyers will be able to deduct the sales tax paid on vehicles purchased with sales prices under $49,500. The deduction is above-the-line so you don't have to itemize to enjoy the benefit. The deduction phases out for individual taxpayers making over $125,000 and married taxpayers making over $250,000. In addition, motorcycles and motor homes are included in the tax breaks thanks to some heavy lobbying by Harley-Davidson.
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