Summary of American Recovery and Reinvestment Act of 2009

Volume 2009 / Issue 4

February 24, 2009

The following table summarizes the estimated revenue impact of the various provisions contained in the recently passed stimulus bill. A review of the summary provides some insight into the priorities of the new Congress and the Administration, and perhaps some sense of things to come. Of the total bill of $789B, about 38% went to various tax cut provisions and the rest is additional spending. If you'd like to see how local governments have proposed to spend their share of the money go to www.stimuluswatch.org where you can find listings of proposed projects organized by city and state. Here’s some of the highlights:

Less than 1% went to business tax cuts, while more than 31% was spent on individual tax cuts, mostly focused on lower income taxpayers and individuals that pay no income taxes.
Spending on various Department of Labor, Department of Health and Human Services and Department of Education initiatives adds up to over 9%.
Approximately 8% was targeted for highway construction projects.
Various energy and green initiatives account for about 9%.
Direct assistance to the needy and unemployed make up about 9%.
Aid to the States in various forms accounts for 18% of the total.

SUMMARY OF REVENUE IMPACT OF VARIOUS PROVISIONS OF THE
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009

		Estimated Cost	Percent of
		Over 10 Years	Total Bill:
SPENDING & TAX PROVISIONS		in Millions	$789B

SPENDING PROVISIONS

Title I - Agriculture, Rural Development, FDA

Distance Learning, Telemedicine, and Broadband Program	$	2,500
Supplemental Nutrition Assistance		19,991
Other		3,975

	$	26,466	3.35%

Title II- Commerce, Justice, Science and Related Entities

Broadband Technology Opportunities Program	$	4,700
State and Local Law Enforcement		2,765
National Science Foundation		3,002
Other		5,455

	$	15,922	2.02%

Title III- Department of Defense		4,555	0.58%

Title IV-Energy and Water

Energy Efficiency and Renewable Energy	$	16,800
Innovative Technology Loan Guarantee		6,000
Other Energy Programs		22,425
Corps of Engineers		4,600
Other		1,000

	$	50,825	6.44%

Title V-Financial Services and General Government

Federal Buildings Fund	$	5,550
Other		1,308

	$	6,858	0.87%

Title VI- Homeland Security	$	2,755	0.35%


Title VII- Interior, Environment and Related Agencies

Clean Water and Drinking Water State Revolving Funds	$	6,000
Other		4,950

	$	10,950	1.39%

Title VIII-Departments of Labor, Health and Human Services, Education

National Institutes of Health	$	10,000
National Coordinator for Health Information Technology		2,000
Other DOH		9,897
Employment and Training Administration		4,470
Education for the Disadvantaged		13,000
Special education		12,200
Student Financial Assistance		17,314
Other DOE		2,124
Other Title VIII		1,559

	$	72,564	9.20%

Title IX- Legislative Branch	$	25	0.00%

Title X-Military Construction and Veteran's Affairs	$	4,281	0.54%

Title XI- State, Foreign Operations and Related Programs	$	602	0.08%

Title XII-Transport, Housing and Urban Development

Highway Construction	$	27,500
Other Transportation		20,620
Public Housing Capital Fund		4,000
Other Housing Assistance		9,675
HOME, Low-income Housing Tax Credit Program		-143

	$	61,652	7.81%

Title XIV- State Fiscal Stabilization	$	53,600	6.79%

Total of Spending Provisions	$	311,055


TAX PROVISIONS

Tax Relief for Individuals and Families

Make Work Pay Credit	$	116,199
Payment to Social Security Recipients		14,225
Credit for Fed and State Pensioners		218
Earned Income Credit Increase		4,663
Child Care Credit Increase		14,830
Education Tax Credit- New		13,907
Computers as Qualified 529 Plan Expense		6
Refundable 1st Time Home Buyer Credit-Enhanced		6,638
Sales Tax Deduction for Vehicle Purchases		1,684
Suspend Tax on Unemployment Benefits		4,740
AMT relief		69,759

	$	246,869	31.29%

Tax Incentives for Businesses

Extension of Bonus Depreciation	$	5,074
Election to Accelerate Historic, AMT and R&D Tax Credits		805
Extension of Small Business Expensing		41
5 Year Carryback of NOL for Small Business		947
Deferral of Cancellation of Debt Income		1,622
Hiring incentives for Veterans and Youth		231
Small Business Capital Gains		829
Small Business Estimated Tax Relief		0
S-Corp Built-In Gains Holding Period Reduced from 7 to 10 Years		415
Repeal of Section 382 Notice		-6,977
New Section 382 rules		3,163

	$	6,150	0.78%

Manufacturing Recovery Provisions

Industrial Development Bonds	$	203
Advanced Energy Investment Credit		1,647

	$	1,850	0.23%


Economic Recovery Tools

New Markets Tax Credit	$	815
Recovery Zone Bonds		5,371
Tribal Economic Development Bonds		315
Modify Speed requirement for High Speed Rail Exempt Bonds		288

	$	6,789	0.86%

Infrastructure Financing Tools

Modifications to Rules for Tax Exempt Interest for Banks	$	3,234
Private Activity Bond Interest Exempted From AMT		555
Delay Withholding on Certain Government Payments		291
Qualified School Construction Bonds		9,877
Increase Qualified Zone Activity Bonds		1,045
Tax Credit Bonds for State and Local Governments		4,348

	$	19,350	2.45%

Reinvestment in Renewable Energy

Extension/Modification of Renewable Energy Credits	$	13,143
Election to claim ITC in lieu of Energy Credit		285
Removal of Limitations on ITC and Energy Credits		872
Clean Renewable Energy Bonds		578
Qualified Energy Conservation Bonds		803
Credits for Energy Efficient Home Improvements		2,034
Credit for Alternative Fuel "Gas Stations"		54
Electric Vehicle Credit		2,002
Parity for Transit Benefits		192

	$	19,963	2.53%

Other Provisions

Grants in Lieu of Credits for Renewable Energy	$	5
Grants in Lieu for Low Income Housing		69

	$	74	0.01%


Assistance for Families and Unemployed Workers

Unemployment Benefits Extended	$	26,960
Unemployment Benefits Increased		8,800
Unemployment Benefits Modernized		2,975
Assistance to States for Unemployment trust Funds		1,100
Other Unemployment Provisions		138
Temporary Assistance For Needy Families (TANF)		2,418
TANF Assistance to Select States		319
Child Support Enforcement		1,000

	$	43,710	5.54%

Health Insurance Assistance

Premium Subsidies for COBRA Continuation Coverage	$	24,700
Medicare Payments for Teaching Hospitals		191
Medicare Payments to Hospice		134
Medicare Payments to Long-Term Care Hospitals		13

	$	25,038	3.17%

State Fiscal Relief and Medicaid

Temporary Reduction in States Medicaid Obligations	$	86,600
Temporary Increase in Hospital Payments		460
Extend Moratorium on Medicaid Regulations		105
Extend Transitional Medical Assistance		1,300
Extend Qualified Individual Program		550
Health Care Subsidy for Native Americans		134
Prompt Payment of Medicaid to Nursing Facilities and Hospitals		680

	$	89,829	11.39%

Health Information Technology

Funding for Health IT through Medicare and Medicaid	$	17,200	2.18%





Trade Provisions

Expansion of Trade Adjustment Assistance Programs	$	1,600
Duty Refund Recollection		90

	$	1,690	0.21%

Total of Tax Provisions	$	478,512

Total of Spending and Tax Provisions	$	789,567	100%