Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Family Security and Small Business
Stimulus Act of 2008''.

SEC. 2. INDIVIDUAL INCOME TAX RATE REDUCTION AFTER 2007.

(a) Rate Reduction.--
(1) In general.--Subparagraph (A) of section 1(i)(1) of the
Internal Revenue Code of 1986 (relating to tax imposed on
individuals) is amended to read as follows:
''(A) In general.--In the case of taxable years
beginning after December 31, 2007--
''(i) the rate of tax under subsections
(a), (b), (c), and (d) on taxable income not
over the initial bracket amount shall be 5
percent, and
''(ii) the 15 percent rate of tax shall
apply only to taxable income over the initial
bracket amount but not over the maximum dollar
amount for the 15-percent rate bracket.''.
(2) Conforming amendments.--
(A) The heading for paragraph (1) of section 1(i)
of such Code is amended by striking ''10-percent'' and
inserting ''5-percent''.
(B) Subparagraph (D) of section 1(i)(1) of such
Code is amended to read as follows:
''(D) Coordination with acceleration of 5 percent rate
bracket benefit for 2008.--This paragraph shall not apply to
any taxable year to which section 6428 applies.''.
(3) 5-percent bracket made permanment.--Title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 shall
not apply to paragraph (1) of section 1(i) of the Internal
Revenue Code of 1986, as amended by this subsection.
(b) Advance Payment of 5 Percent Rate Bracket.--Section 6428 of
such Code is amended to read as follows:

''SEC. 6428. ACCELERATION OF 5 PERCENT INCOME TAX RATE BRACKET BENEFIT
FOR 2008.

''(a) In General.--In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by chapter 1 for
the taxpayer's first taxable year beginning in 2008 an amount equal to
5 percent of so much of the taxpayer's taxable income as does not
exceed the initial bracket amount (as defined in section 1(i)(1)(B)).
''(b) Credit Treated as Nonrefundable Personal Credit.--For
purposes of this title, the credit allowed under this section shall be
treated as a credit allowable under subpart A of part IV of subchapter
A of chapter 1.
''(c) Eligible Individual.--For purposes of this section, the term
'eligible individual' means any individual other than--
''(1) any estate or trust,
''(2) any nonresident alien individual, and
''(3) 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.
''(d) 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 (e).
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 (e) 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.
''(e) Advance Refunds of Credit Based on Prior Year Data.--
''(1) In general.--Each individual who was an eligible
individual for such individual's first taxable year beginning
in 2006 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--
''(A) this section (other than subsections (b) and
(d) and this subsection) had applied to such taxable
year, and
''(B) the credit for such taxable year were not
allowed to exceed the excess (if any) of--
''(i) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax
imposed by section 55, over
''(ii) the sum of the credits allowable
under part IV of subchapter A of chapter 1
(other than the credits allowable under subpart
C thereof, relating to refundable credits).
''(3) Timing of payments.--In the case of any overpayment
attributable to this subsection, the Secretary shall, subject
to the provisions of this title, refund or credit such
overpayment as rapidly as possible and, to the extent
practicable, before the date which is 30 days after the date of
the enactment of this section. 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 subsection.''.
(c) Technical Amendment.--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. Acceleration of 5 percent income tax rate bracket benefit
for 2008.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.

SEC. 3. INCREASE IN EXPENSING FOR SMALL BUSINESSES.

(a) $125,000 Limit Made Permanent; Temporary Increase to
$375,000.--Paragraph (1) of section 179(b) of the Internal Revenue Code
of 1986 (relating to election to expense certain depreciable business
assets) is amended by striking ''$25,000 ($125,000 in the case of
taxable years beginning after 2006 and before 2011)'' and inserting
''$125,000 ($375,000 in the case of taxable years beginning after 2007
and before 2010)''.
(b) Conforming Amendment.--Subparagraph (A) of section 179(b)(5) of
such Code is amended--
(1) by striking ''and before 2011'', and
(2) by adding at the end the following flush sentence:
''The preceding sentence shall not apply to the
$500,000 amount for taxable years beginning after
December 31, 2010.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
Student:
Family Security and Small Business Stimulus Act of 2008 - Amends the Internal Revenue Code to: (1) allow a reduced 5% income tax rate on taxable income for low-income taxpayers; (2) allow an advance refund in 2008 for the reduction in the tax rate; and (3) increase to $375,000 between 2008 and 2010 the expensing allowance for small business depreciable assets.