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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5140 Introduced in House (IH)]

110th CONGRESS
  2d Session
                                H. R. 5140

 To provide economic stimulus through recovery rebates to individuals, 
 incentives for business investment, and an increase in conforming and 
                            FHA loan limits.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 28, 2008

    Ms. Pelosi (for herself, Mr. Boehner, Mr. Hoyer, Mr. Blunt, Mr. 
Clyburn, Mr. Rangel, Mr. McCrery, Mr. Obey, Mr. Frank of Massachusetts, 
 Mr. Bachus, Mr. Emanuel, Mr. Larson of Connecticut, Ms. Granger, Ms. 
 DeLauro, Mr. George Miller of California, and Mr. Becerra) introduced 
  the following bill; which was referred to the Committee on Ways and 
 Means, and in addition to the Committee on Financial Services, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
 To provide economic stimulus through recovery rebates to individuals, 
 incentives for business investment, and an increase in conforming and 
                            FHA loan limits.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Recovery Rebates 
and Economic Stimulus for the American People Act of 2008''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
    TITLE I--RECOVERY REBATES AND INCENTIVES FOR BUSINESS INVESTMENT

Sec. 101. 2008 recovery rebates for individuals.
Sec. 102. Temporary increase in limitations on expensing of certain 
                            depreciable business assets.
Sec. 103. Special allowance for certain property acquired during 2008.
               TITLE II--HOUSING GSE AND FHA LOAN LIMITS

Sec. 201. Temporary conforming loan limit increase for Fannie Mae and 
                            Freddie Mac.
Sec. 202. Temporary loan limit increase for FHA.

    TITLE I--RECOVERY REBATES AND INCENTIVES FOR BUSINESS INVESTMENT

SEC. 101. 2008 RECOVERY REBATES FOR INDIVIDUALS.

    (a) In General.--Section 6428 of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 6428. 2008 RECOVERY REBATES FOR INDIVIDUALS.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by subtitle A for 
the first taxable year beginning in 2008 an amount equal to the lesser 
of--
            ``(1) net income tax liability, or
            ``(2) $600 ($1,200 in the case of a joint return).
    ``(b) Special Rules.--
            ``(1) In general.--In the case of a taxpayer described in 
        paragraph (2)--
                    ``(A) the amount determined under subsection (a) 
                shall not be less than $300 ($600 in the case of a 
                joint return), and
                    ``(B) the amount determined under subsection (a) 
                (after the application of subparagraph (A)) shall be 
                increased by the product of $300 multiplied by the 
                number of qualifying children (within the meaning of 
                section 24(c)) of the taxpayer.
            ``(2) Taxpayer described.--A taxpayer is described in this 
        paragraph if the taxpayer--
                    ``(A) has earned income of at least $3,000, or
                    ``(B) has--
                            ``(i) net income tax liability which is 
                        greater than zero, and
                            ``(ii) gross income which is greater than 
                        the sum of the basic standard deduction plus 
                        the exemption amount (twice the exemption 
                        amount in the case of a joint return).
    ``(c) Treatment of Credit.--The credit allowed by subsection (a) 
shall be treated as allowed by subpart C of part IV of subchapter A of 
chapter 1.
    ``(d) Limitation Based on Adjusted Gross Income.--The amount of the 
credit allowed by subsection (a) (determined without regard to this 
subsection and subsection (f)) shall be reduced (but not below zero) by 
5 percent of so much of the taxpayer's adjusted gross income as exceeds 
$75,000 ($150,000 in the case of a joint return).
    ``(e) Definitions.--For purposes of this section--
            ``(1) Net income tax liability.--The term `net income tax 
        liability' means the excess of--
                    ``(A) the sum of the taxpayer's regular tax 
                liability (within the meaning of section 26(b)) and the 
                tax imposed by section 55 for the taxable year, over
                    ``(B) the credits allowed by part IV (other than 
                section 24 and subpart C thereof) of subchapter A of 
                chapter 1.
            ``(2) Eligible individual.--The term `eligible individual' 
        means any individual other than--
                    ``(A) any nonresident alien individual,
                    ``(B) any individual with respect to whom a 
                deduction under section 151 is allowable to another 
                taxpayer for a taxable year beginning in the calendar 
                year in which the individual's taxable year begins, and
                    ``(C) an estate or trust.
            ``(3) Earned income.--The term `earned income' has the 
        meaning set forth in section 32(c)(2) except that--
                    ``(A) subclause (II) of subparagraph (B)(vi) 
                thereof shall be applied by substituting `January 1, 
                2009' for `January 1, 2008', and
                    ``(B) such term shall not include net earnings from 
                self-employment which are not taken into account in 
                computing taxable income.
            ``(4) Basic standard deduction; exemption amount.--The 
        terms `basic standard deduction' and `exemption amount' shall 
        have the same respective meanings as when used in section 
        6012(a).
    ``(f) Coordination With Advance Refunds of Credit.--
            ``(1) In general.--The amount of credit which would (but 
        for this paragraph) be allowable under this section shall be 
        reduced (but not below zero) by the aggregate refunds and 
        credits made or allowed to the taxpayer under subsection (g). 
        Any failure to so reduce the credit shall be treated as arising 
        out of a mathematical or clerical error and assessed according 
        to section 6213(b)(1).
            ``(2) Joint returns.--In the case of a refund or credit 
        made or allowed under subsection (g) with respect to a joint 
        return, half of such refund or credit shall be treated as 
        having been made or allowed to each individual filing such 
        return.
    ``(g) Advance Refunds and Credits.--
            ``(1) In general.--Each individual who was an eligible 
        individual for such individual's first taxable year beginning 
        in 2007 shall be treated as having made a payment against the 
        tax imposed by chapter 1 for such first taxable year in an 
        amount equal to the advance refund amount for such taxable 
        year.
            ``(2) Advance refund amount.--For purposes of paragraph 
        (1), the advance refund amount is the amount that would have 
        been allowed as a credit under this section for such first 
        taxable year if this section (other than subsection (f) and 
        this subsection) had applied to such taxable year.
            ``(3) Timing of payments.--The Secretary shall, subject to 
        the provisions of this title, refund or credit any overpayment 
        attributable to this section as rapidly as possible. No refund 
        or credit shall be made or allowed under this subsection after 
        December 31, 2008.
            ``(4) No interest.--No interest shall be allowed on any 
        overpayment attributable to this section.''.
    (b) Treatment of Possessions.--
            (1) Mirror code possession.--The Secretary of the Treasury 
        shall make a payment to each possession of the United States 
        with a mirror code tax system in an amount equal to the loss to 
        that possession by reason of the amendments made by this 
        section. Such amount shall be determined by the Secretary of 
        the Treasury based on information provided by the government of 
        the respective possession.
            (2) Other possessions.--The Secretary of the Treasury shall 
        make a payment to each possession of the United States which 
        does not have a mirror code tax system in an amount estimated 
        by the Secretary of the Treasury as being equal to the 
        aggregate benefits that would have been provided to residents 
        of such possession by reason of the amendments made by this 
        section if a mirror code tax system had been in effect in such 
        possession. The preceding sentence shall not apply with respect 
        to any possession of the United States unless such possession 
        has a plan, which has been approved by the Secretary of the 
        Treasury, under which such possession will promptly distribute 
        such payment to the residents of such possession.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection, the term ``possession of the United 
                States'' includes the Commonwealth of Puerto Rico and 
                the Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this subsection shall be treated in the 
                same manner as a refund due from the credit allowed 
                under section 6428 of the Internal Revenue Code of 1986 
                (as added by this section).
    (c) Appropriations To Carry Out Recovery Rebates.--
            (1) In general.--The following sums are hereby 
        appropriated, out of any money in the Treasury not otherwise 
        appropriated, for the fiscal year ending September 30, 2008, to 
        implement the provisions of this section (including the 
        amendments made by this section):
                    (A) For an additional amount for ``Department of 
                the Treasury--Financial Management Service--Salaries 
                and Expenses'', $52,510,000, to remain available until 
                September 30, 2009.
                    (B) For an additional amount for ``Department of 
                the Treasury--Internal Revenue Service--Taxpayer 
                Services'', $48,920,000, to remain available until 
                September 30, 2009.
                    (C) For an additional amount for ``Department of 
                the Treasury--Internal Revenue Service--Operations 
                Support'', $149,700,000, to remain available until 
                September 30, 2009.
            (2) Reports.--No later than 15 days after enactment of this 
        Act, the Secretary of the Treasury shall submit a plan to the 
        Committees on Appropriations of the House of Representatives 
        and the Senate detailing the expected use of the funds provided 
        by this subsection. Beginning 90 days after enactment of this 
        Act, the Secretary of the Treasury shall submit a quarterly 
        report to the Committees on Appropriations of the House of 
        Representatives and the Senate detailing the actual expenditure 
        of funds provided by this subsection and the expected 
        expenditure of such funds in the subsequent quarter.
    (d) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``or 6428'' after 
        ``section 35''.
            (2) Paragraph (1) of section 1(i) of the Internal Revenue 
        Code of 1986 is amended by striking subparagraph (D).
            (3) The item relating to section 6428 in the table of 
        sections for subchapter B of chapter 65 of such Code is amended 
        to read as follows:

``Sec. 6428. 2008 recovery rebates for individuals.''.

SEC. 102. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN 
              DEPRECIABLE BUSINESS ASSETS.

    (a) In General.--Subsection (b) of section 179 of the Internal 
Revenue Code of 1986 (relating to limitations) is amended by adding at 
the end the following new paragraph:
            ``(7) Increase in limitations for 2008.--In the case of any 
        taxable year beginning in 2008--
                    ``(A) the dollar limitation under paragraph (1) 
                shall be $250,000,
                    ``(B) the dollar limitation under paragraph (2) 
                shall be $800,000, and
                    ``(C) the amounts described in subparagraphs (A) 
                and (B) shall not be adjusted under paragraph (5).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.

SEC. 103. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2008.

    (a) In General.--Subsection (k) of section 168 of the Internal 
Revenue Code of 1986 (relating to special allowance for certain 
property acquired after September 10, 2001, and before January 1, 2005) 
is amended--
            (1) by striking ``September 10, 2001'' each place it 
        appears and inserting ``December 31, 2007'',
            (2) by striking ``September 11, 2001'' each place it 
        appears and inserting ``January 1, 2008'',
            (3) by striking ``January 1, 2005'' each place it appears 
        and inserting ``January 1, 2009'', and
            (4) by striking ``January 1, 2006'' each place it appears 
        and inserting ``January 1, 2010''.
    (b) 50 Percent Allowance.--Subparagraph (A) of section 168(k)(1) of 
such Code is amended by striking ``30 percent'' and inserting ``50 
percent''.
    (c) Conforming Amendments.--
            (1) Subclause (I) of section 168(k)(2)(B)(i) of such Code 
        is amended by striking ``and (iii)'' and inserting ``(iii), and 
        (iv)''.
            (2) Subclause (IV) of section 168(k)(2)(B)(i) of such Code 
        is amended by striking ``clauses (ii) and (iii)'' and inserting 
        ``clause (iii)''.
            (3) Clause (i) of section 168(k)(2)(C) of such Code is 
        amended by striking ``and (iii)'' and inserting ``, (iii), and 
        (iv)''.
            (4) Clause (i) of section 168(k)(2)(F) of such Code is 
        amended by striking ``$4,600'' and inserting ``$8,000''.
            (5)(A) Subsection (k) of section 168 of such Code is 
        amended by striking paragraph (4).
            (B) Clause (iii) of section 168(k)(2)(D) of such Code is 
        amended by striking the last sentence.
            (6) Paragraph (4) of section 168(l) of such Code is amended 
        by redesignating subparagraphs (A), (B), and (C) as 
        subparagraphs (B), (C), and (D) and inserting before 
        subparagraph (B) (as so redesignated) the following new 
        subparagraph:
                    ``(A) Bonus depreciation property under subsection 
                (k).--Such term shall not include any property to which 
                section 168(k) applies.''.
            (7) Paragraph (5) of section 168(l) of such Code is 
        amended--
                    (A) by striking ``September 10, 2001'' in 
                subparagraph (A) and inserting ``December 31, 2007'', 
                and
                    (B) by striking ``January 1, 2005'' in subparagraph 
                (B) and inserting ``January 1, 2009''.
            (8) Subparagraph (D) of section 1400L(b)(2) of such Code is 
        amended by striking ``January 1, 2005'' and inserting ``January 
        1, 2010''.
            (9) Paragraph (3) of section 1400N(d) of such Code is 
        amended--
                    (A) by striking ``September 10, 2001'' in 
                subparagraph (A) and inserting ``December 31, 2007'', 
                and
                    (B) by striking ``January 1, 2005'' in subparagraph 
                (B) and inserting ``January 1, 2009''.
            (10) Paragraph (6) of section 1400N(d) of such Code is 
        amended by adding at the end the following new subparagraph:
                    ``(E) Exception for bonus depreciation property 
                under section 168(k).--The term `specified Gulf 
                Opportunity Zone extension property' shall not include 
                any property to which section 168(k) applies.''.
            (11) The heading for subsection (k) of section 168 of such 
        Code is amended--
                    (A) by striking ``September 10, 2001'' and 
                inserting ``December 31, 2007'', and
                    (B) by striking ``January 1, 2005'' and inserting 
                ``January 1, 2009''.
            (12) The heading for clause (ii) of section 168(k)(2)(B) of 
        such Code is amended by striking ``pre-january 1, 2005'' and 
        inserting ``pre-january 1, 2009''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2007, in taxable 
years ending after such date.

               TITLE II--HOUSING GSE AND FHA LOAN LIMITS

SEC. 201. TEMPORARY CONFORMING LOAN LIMIT INCREASE FOR FANNIE MAE AND 
              FREDDIE MAC.

    (a) Increase of High Cost Areas Limits for Housing GSEs.--For 
mortgages originated during the period beginning on July 1, 2007, and 
ending at the end of December 31, 2008:
            (1) Fannie mae.--With respect to the Federal National 
        Mortgage Association, notwithstanding section 302(b)(2) of the 
        Federal National Mortgage Association Charter Act (12 U.S.C. 
        1717(b)(2)), the limitation on the maximum original principal 
        obligation of a mortgage that may be purchased by the 
        Association shall be the higher of--
                    (A) the limitation for 2008 determined under such 
                section 302(b)(2) for a residence of the applicable 
                size; or
                    (B) 125 percent of the area median price for a 
                residence of the applicable size, but in no case to 
                exceed 175 percent of the limitation for 2008 
                determined under such section 302(b)(2) for a residence 
                of the applicable size.
            (2) Freddie mac.--With respect to the Federal Home Loan 
        Mortgage Corporation, notwithstanding section 305(a)(2) of the 
        Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
        1454(a)(2)), the limitation on the maximum original principal 
        obligation of a mortgage that may be purchased by the 
        Corporation shall be the higher of--
                    (A) the limitation determined for 2008 under such 
                section 305(a)(2) for a residence of the applicable 
                size; or
                    (B) 125 percent of the area median price for a 
                residence of the applicable size, but in no case to 
                exceed 175 percent of the limitation determined for 
                2008 under such section 305(a)(2) for a residence of 
                the applicable size.
    (b) Determination of Limits.--The areas and area median prices used 
for purposes of the determinations under subsection (a) shall be the 
areas and area median prices used by the Secretary of Housing and Urban 
Development in determining the applicable limits under section 202 of 
this title.
    (c) Rule of Construction.--A mortgage originated during the period 
referred to in subsection (a) that is eligible for purchase by the 
Federal National Mortgage Association or the Federal Home Loan Mortgage 
Corporation pursuant to this section shall be eligible for such 
purchase for the duration of the term of the mortgage, notwithstanding 
that such purchase occurs after the expiration of such period.
    (d) Effect on Housing Goals.--Notwithstanding any other provision 
of law, mortgages purchased in accordance with the increased maximum 
original principal obligation limitations determined pursuant to this 
section shall not be considered in determining performance with respect 
to any of the housing goals established under section 1332, 1333, or 
1334 of the Housing and Community Development Act of 1992 (12 U.S.C. 
4562-4), and shall not be considered in determining compliance with 
such goals pursuant to section 1336 of such Act (12 U.S.C. 4566) and 
regulations, orders, or guidelines issued thereunder.
    (e) Sense of Congress.--It is the sense of the Congress that the 
securitization of mortgages by the Federal National Mortgage 
Association and the Federal Home Loan Mortgage Corporation plays an 
important role in providing liquidity to the United States housing 
markets. Therefore, the Congress encourages the Federal National 
Mortgage Association and the Federal Home Loan Mortgage Corporation to 
securitize mortgages acquired under the increased conforming loan 
limits established in this section, to the extent that such 
securitizations can be effected in a timely and efficient manner that 
does not impose additional costs for mortgages originated, purchased, 
or securitized under the existing limits or interfere with the goal of 
adding liquidity to the market.

SEC. 202. TEMPORARY LOAN LIMIT INCREASE FOR FHA.

    (a) Increase of High-Cost Area Limit.--For mortgages for which the 
mortgagee has issued credit approval for the borrower on or before 
December 31, 2008, subparagraph (A) of section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)(A)) shall be considered 
(except for purposes of section 255(g) of such Act (12 U.S.C. 1715z-
20(g))) to require that a mortgage shall involve a principal obligation 
in an amount that does not exceed the lesser of--
            (1) in the case of a 1-family residence, 125 percent of the 
        median 1-family house price in the area, as determined by the 
        Secretary; and in the case of a 2-, 3-, or 4-family residence, 
        the percentage of such median price that bears the same ratio 
        to such median price as the dollar amount limitation determined 
        for 2008 under section 305(a)(2) of the Federal Home Loan 
        Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, 
        or 4-family residence, respectively, bears to the dollar amount 
        limitation determined for 2008 under such section for a 1-
        family residence; or
            (2) 175 percent of the dollar amount limitation determined 
        for 2008 under such section 305(a)(2) for a residence of the 
        applicable size (without regard to any authority to increase 
        such limitation with respect to properties located in Alaska, 
        Guam, Hawaii, or the Virgin Islands);
except that the dollar amount limitation in effect under this 
subsection for any size residence for any area shall not be less than 
the greater of (A) the dollar amount limitation in effect under such 
section 203(b)(2) for the area on October 21, 1998; or (B) 65 percent 
of the dollar amount limitation determined for 2008 under such section 
305(a)(2) for a residence of the applicable size. Any reference in this 
subsection to dollar amount limitations in effect under section 305 
(a)(2) of the Federal Home Loan Mortgage Corporation Act means such 
limitations as in effect without regard to any increase in such 
limitation pursuant to section 201 of this title.
    (b) Discretionary Authority.--If the Secretary of Housing and Urban 
Development determines that market conditions warrant such an increase, 
the Secretary may, for the period that begins upon the date of the 
enactment of this Act and ends at the end of the date specified in 
subsection (a), increase the maximum dollar amount limitation 
determined pursuant to subsection (a) with respect to any particular 
size or sizes of residences, or with respect to residences located in 
any particular area or areas, to an amount that does not exceed the 
maximum dollar amount then otherwise in effect pursuant to subsection 
(a) for such size residence, or for such area (if applicable), by not 
more than $100,000.
    (c) Publication of Area Median Prices and Loan Limits.--The 
Secretary of Housing and Urban Development shall publish the median 
house prices and mortgage principal obligation limits, as revised 
pursuant to this section, for all areas as soon as practicable, but in 
no case more than 30 days after the date of the enactment of this Act. 
With respect to existing areas for which the Secretary has not 
established area median prices before such date of enactment, the 
Secretary may rely on existing commercial data in determining area 
median prices and calculating such revised principal obligation limits.
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