The compromise stimulus bill just passed by the U.S. House of Representatives without a single Republican vote contains several provisions that will help our active duty military, retired miitary and veterans.
The Washington Post today reports in “Stimulus Bill Would Aid Military Homeowners, Wounded”:
To help military personnel forced to sell their homes amid the current real estate crisis, the compromise stimulus bill contains $555 million for the secretary of defense to acquire title to a military person’s property or reimburse the individual for losses after a private sale or foreclosure. The bill also includes nearly $3 billion in construction funds to repair and modernize military facilities.
The new program established in the stimulus bill is called the Homeowners Assistance Fund. It is primarily for wounded who need to move for medical reasons, surviving spouses of those killed in action or Defense Department personnel suddenly ordered to relocate. The program is also available to the widows of Defense Department civilian employees killed in the line of duty. It builds on a program to help homeowners near military bases being closed. [See”HAP” below]
Senate Appropriations Committee members described $2.3 billion of the military construction money as needed to aid “quality of life and family-friendly military construction projects,” such as barracks for those returning from overseas deployments, family housing, child-care centers, and health and dental clinics on bases in the United States.
Another major element in that package is $481 million for new or expanded facilities to take care of medical and social service needs for the wounded and their families.
The Military Officers Association of America (MOAA) also reports that the final stimulus package (as was agreed to by House and Senate conferees) “includes funding for a variety of initiatives that will affect the military community in one way or another” and other taxpayers.
Among them:
Federal Income Tax Rebate: Working employees (including the self-employed) would see a reduction in federal income tax withholding and liability of up to $400 (single) or $800 (married filing joint return). This tax credit would be calculated at 6.2% of earned income, up to the capped amount. The credit would phase out for taxpayers with adjusted gross incomes above $75,000 (single) or $150,000 (married joint return).
Special Payment: Social Security annuitants, disabled veterans, and certain others would be eligible for a one-time $250 payment. Anyone who is eligible for this payment and also eligible for the federal income tax rebate mentioned above would have the $250 deducted from the latter in determining the end-of-year tax liability.
Military Homeowner Assistance Program (HAP): HAP benefits (normally payable only at BRAC locations) are extended to certain military homeowners who bought homes before July 1, 2006 and who sell the homes before Sept. 30, 2012….
Education Tax Credit: Taxpayers with college education expenses would receive a tax credit of up to $2,500 for the cost of tuition, books, and related expenses during 2009 and 2010. The credit would be 100% of the first $2,000 and 25% of the next $2,000. The credit would phase out for taxpayers with adjusted gross incomes above $80,000 (single) or $160,000 (married).
First-time Homebuyer Tax Credit: For 2009, the credit would be 10% of the purchase price, up to a maximum for $8,000. The previous requirement for homeowners buying homes after January 1, 2009 to pay the money back would be removed, unless the house is sold within three years of purchase.
And, finally, a very important one for our unemployed veterans:
Incentives to Hire Unemployed Veterans: Businesses would get a tax credit of 40% of the first $6,000 in wages for hiring unemployed veterans who are within 5 years of leaving active duty and who have drawn unemployment compensation for more than 4 weeks during the year before being hired.
Photo: U.S. Army
The author is a retired U.S. Air Force officer and a writer.