RESIDENT INFORMATION

The American Recovery and Reinvestment Act includes the following provisions:

• Extends unemployment benefits through December 2009 (up to 33 weeks of benefits).  This was scheduled to phase out in March 2009.
• Increases unemployment benefits for 20 million jobless workers by $25 per week.
• Improves health insurance for unemployed workers.  Laid off workers using COBRA to extend their health insurance can get a 65% subsidy for COBRA premiums for up to 9 months.
• Allows refundable tax credit of up to $400 per worker.  (This is phased out completely at $200,000 for couples filing jointly and $100,000 for single filers.) The Making Work Pay Credit is one of the key tax provisions included in the ARRA. The ARRA created this new tax credit of up to $400 for working individuals and up to $800 for married couples filing jointly. The Credit is phased out for individuals with a modified Adjusted Gross Income (AGI) in excess of $75,000 and for married couples filing joint returns with a modified AGI in excess of $150,000. This credit may be claimed either as a reduction by your employer in the amount of income tax withheld from your paychecks or through a credit on a tax return. Though all eligible taxpayers will need to claim the credit when they file their 2009 income tax return next year, this benefit credit will automatically be reflected on your paychecks beginning with pay date March 13, 2009 and continue through the end of the calendar year. Taxpayers who do not have taxes withheld by an employer during the year can claim the credit on their 2009 tax return.
• Increases higher education tax credit to a maximum of $2,500.  Low income college students who didn't have access to the higher education tax credit in the past can get partial refunding.
• Increases Pell Grants available to students by $500 for a maximum of $5,350 in 2009 and $5,550 in 2010.
• Expands the Earned Income Tax Credit Program to provide tax relief to families with 3 or more children and increasing the marriage penalty relief. The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low to moderate income working individuals and families. It was created to offset the burden of social security taxes and to provide an incentive to work. ARRA temporarily increases the EITC for qualifying families with three or more children. Under prior law, the EITC was equal to 40 percent of the first $12, 570 of earned income. ARRA increases the credit to 45 percent of the first $12,570 of earned income. Payroll tables have been updated to incorporate this change starting with pay date March 13, 2009.
• Expands the Child Tax Credit. This will allow families to begin qualifying with every dollar earned over $3,000.
• Increases food stamp benefits.
• Incentives for first-time homebuyers and for the purchase of new cars.

Access Florida Program
On March 18, 2009, the Mayor and City Commission approved an Agreement with the Florida Department of Children and Families and the Access Florida Program Community Network to enable the City to serve as an access point for residents seeking food stamps, temporary cash assistance, refugee assistance and Medicaid programs

Neighborhood Stabilization
On March 18, 2009, the Mayor and City Commission approved the City’s planned use of Neighborhood Stabilization Funds in the amount of $2,525,511.

Homeowner Affordability and Stability Plan 
President Obama has announced a $75 billion foreclosure prevention program, called the Homeowner Affordability and Stability Plan which will help homeowners current or delinquent on their mortgages modify their loans to affordable terms. The program is expected to be in place March 4, 2009.

More information on the new program "Making Home Affordable" is available at www.financialstability.gov. Details of the program are still under development, and information about the program will be updated frequently as additional details are available.

Contact a local HUD approved housing counselor for foreclosure assistance, there is no fee to borrowers for this assistance. Beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they ask for money in advance. Borrowers who are delinquent and have not yet been in contact with their lender should call their servicer or a HUD-approved housing counselor immediately, whether or not they believe they are eligible for the Homeowner Stability Initiative.

Energy efficiency
Energy efficiency can lower your Federal tax bill as well as your energy bills. The American Recovery and Reinvestment Act of 2009 (ARRA) extends, expands, and simplifies the federal income tax credits for homeowners who make energy efficiency home improvements. The law extends the consumer tax benefits for another year, through 2010; triples the total available tax credit from $500 to $1,500; and increases the tax credit to 30 percent of the cost of each qualified energy efficiency improvement. The law also removes the cap on geothermal heat pumps and solar water heaters through 2016.

1. Introduction to Tax Credits
2. Consumer Tax Credit Information
3. Hybrid and Diesel Vehicle Tax Credit
4. Home Energy-Efficiency Improvement Tax Credit
5. Geothermal Heat Pumps, Solar Energy, and Fuel Cells
6. Additional Information