Washington, D.C. — U.S. Rep. Bob Etheridge (D-Lillington) and the House Committee on Ways and Means voted today to approve The American Economic Recovery and Reinvestment Act of 2009. The bill includes Etheridge’s legislation to provide tax credits to help fund local school construction projects.
Etheridge is the only N.C. member of the Ways and Means Committee.
“Now is the time for bold steps to create jobs and put our economy back on track. Inaction is not an option,” said Etheridge. “Smart investments will generate jobs right now, and make our economy stronger in the future.”
The bill passed today includes the portions of the economic recovery package that fall under the committee’s jurisdiction. It will now be combined with the portions of the recovery package that were approved by other committees.
The American Economic Recovery and Reinvestment Act of 2009 includes legislation introduced by Etheridge, The America’s Better Classrooms Act, that would provide tax credits to fund local school construction. The bill provides for $25 billion in zero-interest school construction and modernization bonds to states and local communities. The federal government would provide tax credits to the bond holder for the interest normally paid on a bond. State and local governments would only have to pay back the principal, meaning funds used to pay bond interest would be freed for other education needs. North Carolina would receive approximately $448 million under the bill, creating or sustaining 10,752 jobs in the state. Etheridge first introduced the ABCs Act in his first term in Congress in 1997.
The recovery bill provides $275 billion in tax cuts and incentives for individuals, businesses and states and local communities. More than 95 percent of working families will receive a tax cut. It also provides an “American Opportunity” tax credit of up to $2,500 of the cost of higher education expenses. The bill strengthens the housing market by removing the repayment requirement on the existing $7,500 first-time homebuyer credit for homes purchased in the first six months of 2009. The bill also creates tax incentives for businesses to invest and create new jobs.
The recovery legislation will also create jobs by extending the Production Tax Credit for renewable energy and creates new bonds for renewable energy to help finance facilities that generate electricity from alternative energy sources.
The bill helps those looking for work by extending unemployment benefits through the end of 2009 and increases the benefit by $25 per week. It will provide assistance for the unemployed to purchase COBRA health insurance and will provide a one-time additional payment for low-income elderly and disabled recipients of Supplemental Security Income.
The legislation provides direct assistance to states and local communities through bonds to help free up funding for local infrastructure projects to improve our roads, school and bridges while creating good-paying jobs.