Housing Finance:

• FHA and GSE Loan Limits
  Returns loan limits to $729,750 for FHA-insured loans and GSE conforming loans through the end of 2009.

Tax Provisions: 

• First-Time Home Buyer Tax Credit (Applicable to Condominiums)
  $8,000 refundable tax credit for purchases on or after 1.1.09 and before 12.1.09.
  
  
• Low-Income Housing Tax Credit Industry: Supplemental Resources
  85% credit allocation exchange provision for HFAs.Builders can apply for sub-awards from proceeds.Special appropriation of $2.25 HOME funds for use in LIHTC projects (may be subject to Davis Bacon requirements)
  
  
• Bonus Depreciation
  Extends 50% expensing for 2009 capital expenditures (not including structures) for one year.  Bonus depreciation also reduces the effective tax rate of utility companies, which reduces the Contribution-in-aid-of-Construction (CIAC) fees builders must pay for certain development requirements.

Appropriation Programs:

• LIHTC HOME Funding
  $2.25 billion in gap financing for LIHTC equity investment.
  
  
• Rental Assistance
  $2 billion for full-year payments to owners receiving Section 8 project-based rental assistance.
  
  
• Neighborhood Stabilization
  $2 billion for purchase and rehabilitation of foreclosed and vacant properties to promote affordable housing.
  
  
• Rural Housing Insurance Fund
  $200 million to help rural households purchase homes.
  
  
• Rural Community Facilities
  $130 million to finance rural community facilities. 

• Community Development Block Grants 
  $1 billion for community and economic development projects, including housing.

Small Business Benefits:

• Small Business Administration
  $720 million for loan guarantees for small businesses.
  
• AMT patch for 2009 
  Extends the inflation patch for the AMT exemption amount to prevent more than 23 million taxpayers from paying AMT, and thus more tax.
  
• Small Business Expensing
  Allow certain small business investments to be expensed instead of depreciated.  Under the provision, businesses with less than $800,000 in taxable income could expense up to $250,000 in 2009 capital expenditures.
  
• Net Operating Loss Carryback Expansion 
  Provision expands the two-year carryback period to five years for 2008 tax year losses. Carryback expansion only applies to business with avg gross receipts of no more than $15 million for tax years 2005, 2006 and 2007.Potential Benefit:  For small businesses, provides an immediate cash refund for losses in cases where the taxpayer has exhausted taxable income in the prior two tax years.

View the complete Summary here.

For more information, e-mail Robert Dietz or call him at  800-368-5242 x8285.