The costliest item in the economic stimulus plan passed by the Congress is a tax credit of up to $400 for the individuals who are earning an income of less than $75,000 per annum. There is also some help for the Married couples for those who are earning less than $150,000 per year could claim a benefit of up to $800 under the provision, which has a price tag of $116 billion over 10 years, according to the congressional Joint Committee on Taxation. The Senate also approved the $787 billion stimulus plan 60 to 38 on fib 13. And the House passed the plan 246 to 183. This package is the first major legislative victory of Barrack Obama administration. This plan includes $212 billion in tax cuts and $575 billion in spending. According to Obama this will create or save up to 3.5 million jobs.

Infrastructure construction makes up a large part of the bill’s spending provisions as it include $29 billion for highways, $17.7 billion for mass transit and rail and $18.8 billion for clean water and flood control projects. This plan provides $87 billion for Medicaid and the health insurance program for the poor. It consist  $39 billion for unemployed workers in families, including provisions which will extend jobless benefits for 20 additional weeks in most of the states and 33 additional weeks in states which are with high unemployment rates. It also increases weekly benefits by $25. The bill gives a one-time $250 payment for the senior citizens of the state, disabled veterans and disabled people living on Social Security benefits.

This pack also helps the families who don’t earn enough to pay income tax would be eligible to claim the $1,000 child credit. The $8,000 tax credit for first-time home buyers should encourage some of the first-time home buyers to “jump-in” and buy a home, but it may prove to do little in increasing overall demand as the first-time home buyers represent a very small percentage of the entire market. Only as time goes on we will be able to tell if the tax credit is effective or not however. The borrower must agree to homeowner counseling by a DOJ approved debt-counseling agency. This facility is Available only to first-time home buyers while This tax credit is not a loan and does not require repayment how ever If the home is sold within 3-years, the $8,000 tax credit must be re-paid .The tax credit also reduces the home buyer’s tax liability; if the buyer’s liability is less than $8,000, the remaining credit will be issued as a check to his account.

Home purchase should be for a primary residence and not for any other reason however this credit facility is available on home purchases only between January 1, 2009 and December 1, 2009. But you are not eligible when you are single and earn $75,000 or more, or are married and earn  $150,000 or more, and you do not qualify for this tax credit .The credit is not eligible if the seller is a relative for the buyer