In the Senate of the United States,
February 7 (legislative day, February 6), 2008.
Resolved, That the bill from the House of Representa-
tives (H.R. 5140) entitled ‘‘An Act to provide economic stim-
ulus through recovery rebates to individuals, incentives for
business investment, and an increase in conforming and FHA
loan limits.’’, do pass with the following
AMENDMENT:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Economic Stimulus Act of 2008’’.
†
HR 5140 EAS
(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 III—EMERGENCY DESIGNATION
Sec. 301. Emergency designation.
TITLE 
I—RECOVERY 
REBATES
AND INCENTIVES FOR BUSI-
NESS INVESTMENT
SEC. 101. 2008 RECOVERY REBATES FOR INDIVIDUALS.
(a) IN GENERAL.—Section 6428 of the Internal Rev-
enue 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 indi-
vidual, 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.—
†
HR 5140 EAS
‘‘(1) IN GENERAL.—In the case of a taxpayer de-
scribed in paragraph (2)—
‘‘(A) the amount determined under sub-
section (a) shall not be less than $300 ($600 in
the case of a joint return), and
‘‘(B) the amount determined under sub-
section (a) (after the application of subpara-
graph (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 de-
scribed in this paragraph if the taxpayer—
‘‘(A) has qualifying 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 deduc-
tion plus the exemption amount (twice the
exemption amount in the case of a joint re-
turn).
†
HR 5140 EAS
‘‘(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 IN-
COME.—The amount of the credit allowed by subsection (a)
(determined without regard to this subsection and sub-
section (f)) shall be reduced (but not below zero) by 5 per-
cent 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) QUALIFYING INCOME.—The term ‘qualifying
income’ means—
‘‘(A) earned income,
‘‘(B) social security benefits (within the
meaning of section 86(d)), and
‘‘(C) any compensation or pension received
under chapter 11, chapter 13, or chapter 15 of
title 38, United States Code.
‘‘(2) 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
†
HR 5140 EAS
‘‘(B) the credits allowed by part IV (other
than section 24 and subpart C thereof) of sub-
chapter A of chapter 1.
‘‘(3) 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 an-
other taxpayer for a taxable year beginning in
the calendar year in which the individual’s tax-
able year begins, and
‘‘(C) an estate or trust.
‘‘(4) EARNED
INCOME.—The term ‘earned in-
come’ has the meaning set forth in section 32(c)(2) ex-
cept 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 earn-
ings from self-employment which are not taken
into account in computing taxable income.
‘‘(5) 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).
†
HR 5140 EAS
‘‘(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 re-
spect 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
†
HR 5140 EAS
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.
‘‘(h) IDENTIFICATION NUMBER REQUIREMENT.—
‘‘(1) IN GENERAL.—No credit shall be allowed
under subsection (a) to an eligible individual who
does not include on the return of tax for the taxable
year—
‘‘(A) such individual’s valid identification
number,
‘‘(B) in the case of a joint return, the valid
identification 
number 
of 
such 
individual’s
spouse, and
‘‘(C) in the case of any qualifying child
taken into account under subsection (b)(1)(B),
the valid identification number of such quali-
fying child.
†
HR 5140 EAS
‘‘(2) VALID IDENTIFICATION NUMBER.—For pur-
poses of paragraph (1), the term ‘valid identification
number’ means a social security number issued to an
individual by the Social Security Administration.
Such term shall not include a TIN issued by the In-
ternal Revenue Service.’’.
(b) ADMINISTRATIVE AMENDMENTS.—
(1) 
DEFINITION
OF
DEFICIENCY.—Section
6211(b)(4)(A) of the Internal Revenue Code of 1986
is amended by striking ‘‘and 53(e)’’ and inserting
‘‘53(e), and 6428’’.
(2) MATHEMATICAL
OR
CLERICAL
ERROR
AU-
THORITY.—Section 6213(g)(2)(L) of such Code is
amended by striking ‘‘or 32’’ and inserting ‘‘32, or
6428’’.
(c) TREATMENT OF POSSESSIONS.—
(1) PAYMENTS TO POSSESSIONS.—
(A) MIRROR CODE POSSESSION.—The Sec-
retary of the Treasury shall make a payment to
each possession of the United States with a mir-
ror code tax system in an amount equal to the
loss to that possession by reason of the amend-
ments made by this section. Such amount shall
be determined by the Secretary of the Treasury
†
HR 5140 EAS
based on information provided by the govern-
ment of the respective possession.
(B) 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 es-
timated 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 sec-
tion if a mirror code tax system had been in ef-
fect 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 resi-
dents of such possession.
(2) COORDINATION
WITH
CREDIT
ALLOWED
AGAINST UNITED STATES INCOME TAXES.—No credit
shall be allowed against United States income taxes
under section 6428 of the Internal Revenue Code of
1986 (as amended by this section) to any person—
†
HR 5140 EAS
(A) to whom a credit is allowed against
taxes imposed by the possession by reason of the
amendments made by this section, or
(B) who is eligible for a payment under a
plan described in paragraph (1)(B).
(3) DEFINITIONS AND SPECIAL RULES.—
(A) POSSESSION OF THE UNITED STATES.—
For purposes of this subsection, the term ‘‘posses-
sion of the United States’’ includes the Common-
wealth of Puerto Rico and the Commonwealth of
the Northern Mariana Islands.
(B) MIRROR CODE TAX SYSTEM.—For pur-
poses of this subsection, the term ‘‘mirror code
tax system’’ means, with respect to any posses-
sion of the United States, the income tax system
of such possession if the income tax liability of
the residents of such possession under such sys-
tem 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 pur-
poses 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
†
HR 5140 EAS
of the Internal Revenue Code of 1986 (as amend-
ed by this section).
(d) REFUNDS DISREGARDED IN THE ADMINISTRATION
OF FEDERAL PROGRAMS AND FEDERALLY ASSISTED PRO-
GRAMS.—Any credit or refund allowed or made to any indi-
vidual by reason of section 6428 of the Internal Revenue
Code of 1986 (as amended by this section) or by reason of
subsection (c) of this section shall not be taken into account
as income and shall not be taken into account as resources
for the month of receipt and the following 2 months, for
purposes of determining the eligibility of such individual
or any other individual for benefits or assistance, or the
amount or extent of benefits or assistance, under any Fed-
eral program or under any State or local program financed
in whole or in part with Federal funds.
(e) APPROPRIATIONS TO CARRY OUT REBATES.—
(1) IN GENERAL.—Immediately upon the enact-
ment of this Act, the following sums are appropriated,
out of any money in the Treasury not otherwise ap-
propriated, for the fiscal year ending September 30,
2008:
(A) DEPARTMENT OF TREASURY.—
(i) For an additional amount for ‘‘De-
partment of the Treasury—Financial Man-
agement Service—Salaries and Expenses’’,
†
HR 5140 EAS
$64,175,000, to remain available until Sep-
tember 30, 2009.
(ii) For an additional amount for
‘‘Department of the Treasury—Internal
Revenue 
Service—Taxpayer 
Services’’,
$50,720,000, to remain available until Sep-
tember 30, 2009.
(iii) For an additional amount for
‘‘Department of the Treasury—Internal
Revenue 
Service—Operations 
Support’’,
$151,415,000, to remain available until
September 30, 2009.
(B) SOCIAL SECURITY ADMINISTRATION.—
For an additional amount for ‘‘Social Security
Administration—Limitation on Administrative
Expenses’’, $31,000,000, to remain available
until September 30, 2008.
(2) REPORTS.—No later than 15 days after en-
actment of this Act, the Secretary of the Treasury
shall submit a plan to the Committees on Appropria-
tions of the House of Representatives and the Senate
detailing the expected use of the funds provided by
paragraph (1)(A). Beginning 90 days after enactment
of this Act, the Secretary of the Treasury shall submit
a quarterly report to the Committees on Appropria-
†
HR 5140 EAS
tions of the House of Representatives and the Senate
detailing the actual expenditure of funds provided by
paragraph (1)(A) and the expected expenditure of
such funds in the subsequent quarter.
(f) 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 sub-
paragraph (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 EX-
PENSING OF CERTAIN DEPRECIABLE BUSI-
NESS 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,
†
HR 5140 EAS
‘‘(B) the dollar limitation under paragraph
(2) shall be $800,000, and
‘‘(C) the amounts described in subpara-
graphs (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 Decem-
ber 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 allow-
ance 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’’.
†
HR 5140 EAS
(c) CONFORMING AMENDMENTS.—
(1) Subclause (I) of section 168(k)(2)(B)(i) of
such Code is amended by striking ‘‘and (iii)’’ and in-
serting ‘‘(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 insert-
ing ‘‘, (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 in-
serting before subparagraph (B) (as so redesignated)
the following new subparagraph:
‘‘(A) 
BONUS
DEPRECIATION
PROPERTY
UNDER SUBSECTION (K).—Such term shall not