Senate Passes Unemployment Benefits Extension, Expansion of Housing Tax Credit
BENEFITS VOTE
New Hampshire Union Leader
Daisy Hsiang-Ching Tseng
Boston University Washington News Service
Nov. 4, 2009
WASHINGTON – The Senate voted 98-0 Wednesday to approve an economic relief bill that would extend unemployment benefits, expand tax credits for homebuyers and offer tax breaks to businesses hit by the recession. Both Sen. Judd Gregg, R-N.H., and Sen. Jeanne Shaheen, D-N.H., supported the bill.
“Many of our nation’s unemployed workers have been anxiously waiting for these benefits to come through, and I’m happy to report that relief is on the way,” Shaheen said in a statement. “I am proud of the bill that passed the Senate today. It will help nearly 2 million Americans who are still unable to find work, protect small businesses struggling in this challenging economic climate and stimulate economic activity to help create jobs and grow our economy.”
Gregg in a statement called the extension of unemployment benefits “an appropriate and needed effort.”
”I supported this measure, as I believe it will provide important assistance to those hit hard by unemployment and incentives to boost economic activity,” Gregg said. “It also is fully offset and will not add to the deficit.”
The Senate bill is estimated to cost $2.4 billion over 10 years and its backers say its cost would be fully offset by an extension of the Federal Unemployment Tax Act until June 30, 2011.
The vote originally was scheduled for Thursday but came to the Senate floor late Wednesday afternoon.
The Worker, Homeownership and Business Assistance Act, would extend unemployment insurance by up to 14 additional weeks for jobless workers in all 50 states and extend benefits for six weeks beyond the 14 for workers in hardest-hit states with unemployment levels of 8.5 percent and above.
The House passed a bill a few weeks ago that extends benefits for 13 weeks to jobless workers in the 27 states with unemployment rates of at least 8.5 percent. The Senate-passed legislation will now go to the House, where quick passage is expected.
The $8,000 tax credit currently available to first-time homebuyers would be extended through June for buyers who sign purchase agreements by the end of April. In addition, a $6,500 credit would be available to homeowners who have been in their current residence for the last five years or more and are buying another house.
The credit is available only for the purchase of principal residences with a purchase price of $800,000 or less.
“The slumping housing market is one of the main causes of this recession, and it is absolutely critical that we got get it moving again,” Shaheen said. “Winter months are some of the toughest for the housing and construction industries, and this tax credit extension should help to get us over that hump. But this tax credit should not and will not exist forever.”
Companies of every size hit by the recession would be allowed to carry back losses incurred in either 2008 or 2009 to get refunds of taxes paid in the previous five years.
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