Conclusion

Now that the semester is over, I went through and read all of my posts from throughout the year.  I learned a lot about government tax incentives and how they can be extremely useful.  I benefited greatly from the cash for clunkers program back in early 2009. Many people are gaining a lot from these various incentives.  First time home buyers are given a large tax break which has helped the home sale rate increase by 10%.  With the current standing of our economy and such, I think it is a great idea for the government to continue to offer incentives.  I was really excited for the HAPPY pet bill, but unfortunatly, it didn’t pass  I will continue to post in my blog even though the semester is over.  I am going to keep track of the newest incentives and post them here.

Tax Incentives for purchasing a Hybrid!

I learned today that you are allowed a tax credit if you are to purchase a new fuel efficient car!  Any hybrids, clean diesel, or other fuel efficient cars are eligible for up to $3,500.  The amount you will receive as a tax credit depends on how fuel efficient the car is.  Cars like the Toyota Prius are eligible for the most money, and the amount decreases with less fuel efficient cars.  The tax incentive expires at the end of 2010, so there is plenty of time to get out there and purchase a good fuel efficient car!  Click the link below to see the exact details of the bill.

http://www.hybridcars.com/federal-incentives.html

Tax credits fuel 10 percent surge in US home sales

Today I read an article on the Associated Press about a 10% surge in home sales in the last month due to tax incentives.  The article said, “Many prospective buyers had been rushing to qualify for an 8,000 dollar tax credit for first time home buyers set to expire November 30.”  This 8,000 dollar credit can be a huge help to someone who is purchasing their first home.  There are many costs that come with the purchase of a first new home.  For people who have the money, this is a great time to buy a house.  Housing prices have dropped way down in the past couple years, and tax incentives are making purchasing a home even more appealing.  They are expecting another surge of sales throughout the month of November.  Hopefully after this incentive program expires, the government will implement another one soon.  The more houses being sold, the better off our economy will be!

Tax Incentives for “Going Green”

Today I read an article in Business Week Magazine about some Tax incentives offered for those who build houses that follow energy efficient standards.  According to Business Week, The Energy Policy Act of 2009 offers federal tax credits of $1.80 per square foot on all projects that meet ASHRAE standards.  ASHRAE is The American Society of Heating, Refrigerating and Air-Conditioning Engineers.  The article also mentioned that businesses can receive up to 10% tax credits for employing solar technologies. The Department of Energy also hands out grants for businesses that experiment with new energy-efficient technologies.  New York was the first state to have implemented these tax incentives in 2005, and they gave away $25 million between 2005 and 2009.  I think these tax incentives are a great idea.  In a world where the population grows exponentially every year, we need to start taking better care of the planet we live on.  It would be great if every home being built could follow the energy efficiency standards.  We could save our planet and save some money at the same time!  A lot of people don’t really realize how hard we are on our planet, and something needs to be done about this!  I would estimate that we will see a lot of government incentives in the future for people who are “going green.”  It seems to be a common theme among people today and hopefully more and more people will start to join in!  After seeing Al Gore’s film “An Inconvenient Truth,”  I seriously thought about what I can do to help our environment.  It really made me think that every little bit can help.  Save the Polar Bears!!

First-Time Home Buyer Tax Credit

Today I read an article about a first-time home buyer tax credit.  The article I read was really brief so I decided to look a little more into it.  www.federalhousingtaxcredit.com is where I found the details of the credit.  A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.  The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.  People who are eligible for the tax credit are first-time home buyers purchasing any kind of home, new or resale, are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009.  I personally think this is a great incentive program.  I think the government needs to continue the tax credit for 2010 because it is extremely tough for citizens to afford houses right now, let alone, first time buyers.  A huge reason for the economic hardship is the amount of foreclosures.  This incentive may push people to make their first home purchase, and it may make things a bit easier to afford.

The H.A.P.P.Y. Pet Bill Pt. 2

After doing more research about the H.A.P.P.Y. Pet Bill and tax rebate program, I found some more interesting information.  Unfortunately the bill is not high on anyone’s list of priorities on Capital Hill.  This bill is no longer anticipated to pass at this time.  The bill would basically give a tax rebate to pet owners helping them pay for a huge share of pet care bills. “We think this is as much a health care bill as any,” said Nancy Perry, Vice President of government affairs at the Humane Society.  Unfortunately, when our country is in this state of economic crisis, congress does not think it is wise to pass the bill.  I think this is extremely unfortunate considering this bill could aide families in giving their pets the care that they really need!

The H.A.P.P.Y. Pet Bill

I just recently read about a new bill that will give pet owners a tax break of up to $3,500 for their pet related expenses!  I thought this would be a great topic for my blog considering my theme of government stimulus packages and how they can benefit the general population.  The Humane Society estimates that about 62% of households in America own a pet.  According to ABC News, the American Society for the Prevention of Cruelty to Animals estimates that it costs about $670 a year to take care of a cat and about $200 more for dogs.  This is a huge expense for people and I think this is a great way to help out!  This is a great way to ensure that people will have enough money to care for their pets when needed.  In the past, my dog has gotten extremely sick and had to spend 2 nights in pet E.R.  These two nights accumulated a bill of over $2000!  This is an outrageous amount of money.  I think this tax break will help keep animals safe and certainly help their owners afford the high price of vet bills and other large costs associated with owning a pet.  I am not exactly sure on the exact details of the bill right now, but as soon as they are released I will keep you updated on its specific details.

Coupons!

While I was at the mall this weekend with my girlfriend, I had a great idea for a new blog entry!  It never dawned on me how much of a “stimulus” coupons could be.  I have always avoided coupons entirely, but after this weekend, I have a new outlook.  We were shopping at a local mall when we walked into a department store (I think it was Macy’s) only to find a line that was about 20 people long.  My girlfriend brought to my attention that the crowds were probably there for the coupons that came out.  Sure enough, I examined the people in line around me to find that a large majority of the customers had the coupons in their hand!  The coupon was good for %50 off one regular priced item with the purchase of one other product that had to be of equal or higher value.  After watching a few of the customers being rung up, I realized just how much money people were saving.  Families were making large purchases such as: expensive bedding, small appliances, and nice clothing.  I thought this would be a great topic to bring up in my entries because coupons really do help stimulate the economy.  There was a huge number of people in the store as a result of the coupons, and I am sure many of them found the coupons to be of great use!  For example, if a family is in desperate need of a new microwave or some clothing for their children, this coupon could be a huge help!  It makes it easier for people to afford certain things they need, and it enables people to get out there and spend money, which is the only way stores can stay in business today.  The best way to stimulate the economy is the help circulate money better.  I never really understood how much coupons could help out when in need, and I think in the current state of the economy, the more coupons, the merrier!

Where’s the work?

I found an interesting chart online the other night.  I was just surfing the web, reading some news and I came across an article about how the bail out package is going to create all these jobs for people.  This article was printed last January.  Take a look at the chart below.

I don’t know when the government projected this increase to happen, but I just don’t see it yet.  They estimated almost a 10% job increase in construction due to the bail out package.  I have friends who used to have great jobs in construction.  They could support themselves, they had benefits, and they were hard workers!  Unfortunately for them, they are out of work now and cannot seem to find another job.  These are men with years of experience in their trade.  They are also extremely hard workers.  They have been looking around for the past 6-8 months with barely any luck at all.  I wonder about this bail out package and how it is really helping our economy.  From my personal experience, I have not necessarily seen a 4% increase in jobs in the retail market.  I see huge corporations going under and big retail chains going out of business with no end in sight!  So my question is…when is this going to end?  When are we really going to start feeling the effects of the bail out?  It is very nice that the government is helping us out by offering rebates on old cars and old appliances, but what we really need it work!  The only way for many people to escape the hole they are in is by getting work, which seems to be near impossible for some people these days.

Cash for Clunkers Pt. 2 Appliances

As I mentioned in my last entry, I wanted to do a post highlighting the governments newest incentive program.  The way this program works is very similar to that of the “Cash for Clunkers” car version.  The United States Department of Energy is giving almost $30 million to be divided up among the states for this program.  The consumer will take their old non-energy efficient appliance and trade it in for a new energy efficient appliance for a discounted price.  The price has not yet been determined, as the program isn’t due to start until October 15th.  They say that the money may not be completely distributed until late November.  Each state will be given a certain amount of this $30 million depending on the states population, with California likely to receive around %11 of the grant.  I think this is another great program for us.  I highly benefited from the automobile program, and I think a huge number of people will benefit from this program as well.  Not only will this help stimulate the economy, but it will be a huge help to our environment.  People who have been forced to work with old non-efficient appliances will now have the opportunity to upgrade and save a big chunk of cash.  As with anything, the more money we spend and put into circulation, the better off our economy will be.  Considering how much of a hit the automotive program was, I am sure this program will generate a huge interest as well.  I am very happy to see these stimulus packages coming out lately.  I think it is a great way to help our country get back on our feet.  As more details about the program are released, I will keep you up to date on the progress and the specific requirements of the program.