I 
110TH CONGRESS 
2D SESSION 
H. R. 5140 
To provide economic stimulus through recovery rebates to individuals, incen-
tives 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. CLY-
BURN, Mr. RANGEL, Mr. MCCRERY, Mr. OBEY, Mr. FRANK of Massachu-
setts, 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 Com-
mittee on Ways and Means, and in addition to the Committee on Finan-
cial Services, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction 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 Representa-
tives 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 Amer-
ican People Act of 2008’’. 
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(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 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 re-
turn). 
‘‘(b) SPECIAL RULES.— 
‘‘(1) IN GENERAL.—In the case of a taxpayer 
described in paragraph (2)— 
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‘‘(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 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 deduc-
tion plus the exemption amount (twice the 
exemption amount in the case of a joint re-
turn). 
‘‘(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. 
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‘‘(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 re-
turn). 
‘‘(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 tax-
able year, over 
‘‘(B) the credits allowed by part IV (other 
than section 24 and subpart C thereof) of sub-
chapter 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 
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‘‘(C) an estate or trust. 
‘‘(3) EARNED INCOME.—The term ‘earned in-
come’ 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 earn-
ings 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). 
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‘‘(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 cred-
it 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 tax-
able year beginning in 2007 shall be treated as hav-
ing 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 pur-
poses 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 sec-
tion as rapidly as possible. No refund or credit shall 
be made or allowed under this subsection after De-
cember 31, 2008. 
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‘‘(4) NO INTEREST.—No interest shall be al-
lowed on any overpayment attributable to this sec-
tion.’’. 
(b) TREATMENT OF POSSESSIONS.— 
(1) MIRROR CODE POSSESSION.—The Secretary 
of the Treasury shall make a payment to each pos-
session of the United States with a mirror code tax 
system in an amount equal to the loss to that pos-
session by reason of the amendments made by this 
section. Such amount shall be determined by the 
Secretary of the Treasury based on information pro-
vided by the government of the respective possession. 
(2) OTHER
POSSESSIONS.—The Secretary of 
the Treasury shall make a payment to each posses-
sion of the United States which does not have a mir-
ror code tax system in an amount estimated by the 
Secretary of the Treasury as being equal to the ag-
gregate benefits that would have been provided to 
residents of such possession by reason of the amend-
ments made by this section if a mirror code tax sys-
tem had been in effect in such possession. The pre-
ceding sentence shall not apply with respect to any 
possession of the United States unless such posses-
sion has a plan, which has been approved by the 
Secretary of the Treasury, under which such posses-
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sion 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 Is-
lands. 
(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 sys-
tem of such possession if the income tax liabil-
ity 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 pur-
poses of section 1324(b)(2) of title 31, United 
States Code, the payments under this sub-
section shall be treated in the same manner as 
a refund due from the credit allowed under sec-
tion 6428 of the Internal Revenue Code of 1986 
(as added by this section). 
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(c) APPROPRIATIONS TO CARRY OUT RECOVERY RE-
BATES.— 
(1) IN
GENERAL.—The following sums are 
hereby appropriated, out of any money in the Treas-
ury not otherwise appropriated, for the fiscal year 
ending September 30, 2008, to implement the provi-
sions of this section (including the amendments 
made by this section): 
(A) For an additional amount for ‘‘Depart-
ment 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 ‘‘Depart-
ment of the Treasury—Internal Revenue Serv-
ice—Taxpayer Services’’, $48,920,000, to re-
main available until September 30, 2009. 
(C) For an additional amount for ‘‘Depart-
ment of the Treasury—Internal Revenue Serv-
ice—Operations Support’’, $149,700,000, to re-
main available until September 30, 2009. 
(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 Sen-
ate detailing the expected use of the funds provided 
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by this subsection. Beginning 90 days after enact-
ment of this Act, the Secretary of the Treasury shall 
submit a quarterly report to the Committees on Ap-
propriations of the House of Representatives and the 
Senate detailing the actual expenditure of funds pro-
vided by this subsection and the expected expendi-
ture 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 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 limita-
tions) is amended by adding at the end the following new 
paragraph: 
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‘‘(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 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 
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 al-
lowance 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 
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(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 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 
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(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 sub-
paragraph (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 sub-
paragraph (B) and inserting ‘‘January 1, 
2009’’. 
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(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 DEPRECIA-
TION 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-JANU-
ARY 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. 
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TITLE II—HOUSING GSE AND 
FHA LOAN LIMITS 
SEC. 201. TEMPORARY CONFORMING LOAN LIMIT IN-
CREASE 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 sec-
tion 302(b)(2) of the Federal National Mortgage As-
sociation Charter Act (12 U.S.C. 1717(b)(2)), the 
limitation on the maximum original principal obliga-
tion 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. 
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(2) FREDDIE MAC.—With respect to the Fed-
eral Home Loan Mortgage Corporation, notwith-
standing 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 pur-
chased 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 de-
termined 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 determina-
tions under subsection (a) shall be the areas and area me-
dian 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 origi-
nated 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 Corpora-
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tion pursuant to this section shall be eligible for such pur-
chase for the duration of the term of the mortgage, not-
withstanding that such purchase occurs after the expira-
tion of such period. 
(d) EFFECT ON HOUSING GOALS.—Notwithstanding 
any other provision of law, mortgages purchased in ac-
cordance 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 sec-
tion 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 there-
under. 
(e) SENSE OF CONGRESS.—It is the sense of the Con-
gress 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 Mort-
gage Corporation to securitize mortgages acquired under 
the increased conforming loan limits established in this 
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section, to the extent that such securitizations can be ef-
fected in a timely and efficient manner that does not im-
pose 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 ap-
proval 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 consid-
ered (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 per-
cent 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 deter-
mined for 2008 under section 305(a)(2) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family resi-
dence, respectively, bears to the dollar amount limi-
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tation 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 re-
spect 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 limi-
tation 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 ref-
erence 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 mar-
ket conditions warrant such an increase, the Secretary 
may, for the period that begins upon the date of the enact-
ment of this Act and ends at the end of the date specified 
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in subsection (a), increase the maximum dollar amount 
limitation determined pursuant to subsection (a) with re-
spect 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 sub-
section (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 De-
velopment shall publish the median house prices and mort-
gage 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 commer-
cial data in determining area median prices and calcu-
lating such revised principal obligation limits. 
Æ 
VerDate Aug 31 2005 
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smartinez on PRODPC61 with BILLS