Congress and the president have assured taxpayers that a tax rebate is forthcoming. At this point, no one knows for certain the amount, when the rebates will be issued, and what the other tax incentives will be. Both the House and the Senate have approved differing versions of the stimulus package.

The House-passed Recovery Rebates and Economic Stimulus for the American People Act of 2008 includes a $600 tax rebate for single filers, $1,200 for joint filers, and an additional $300 per child. The bill also would boost expensing and reinstitute bonus depreciation.

The Senate bill, the Economic Stimulus Act of 2008, would give businesses the choice of (1) boosted expensing; (2) bonus depreciation; or (3) a 5-year carryback for NOLs arising in tax years 2006 or 2007, and includes a tax rebate of $500 for single filers, $1,000 for joint filers, and $300 for each child under the age of 17. Both versions contain similar income limitations with regard to the tax rebates.  When a final bill is approved, and the president signs it into law, I will provide you with a summary of the key provisions.

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