Senator Susan Collins today unveiled a comprehensive economic recovery legislation aimed at reinvigorating the economy that is struggling to overcome the effects of record-high energy prices and a steep downturn in the housing market. The “Economic Recovery Act of 2008,” includes provisions to promote energy efficiency, additional funding for workforce investment, tax incentives to help America’s small businesses, and expansion of the Federal Housing Administration Secure program. It also includes a $500 tax credit to help consumers transition from old wood burning stoves to clean burning wood and wood pellet stoves.
In a speech to the Senate, Senator Collins said, “Over the course of the past several years, we have seen the price of oil climb by more than 400 percent. This escalation in energy costs threatens to plunge our economy into a recession. Gasoline is already topping $4 a gallon just two weeks into the summer driving season. And Maine families fear the cost of staying warm next winter with heating oil prices reaching record highs. At the same time, diesel fuel is pushing some of America’s independent truckers to the brink of bankruptcy.
Senator Collins further said, “Meanwhile, weaknesses in the housing market is making it impossible for millions of Americans to get the financing they need to stay in their homes when their adjustable rate mortgages reset.
“The legislation I am introducing today would provide much-needed help to Americans who are struggling with high energy costs and the weak housing market.”
The major provisions of Senator Collins’ Economic Recovery Act are as follows:
• Increased energy efficiency
Doubles federal funding available for low-income families to weatherize their homes to reduce heating costs;
Increases funding for the Energy Star Program; and
Extends tax credits for the use of renewable energy and for making home improvements geared toward energy efficiency.
• Relief for independent truckers
Creates a two-year pilot program that would permit trucks carrying up to 100,000 pounds to travel on the Interstate Highway System when diesel prices are at or above $3.50 a gallon.
Current regulations prohibit trucks carrying more than 80,000 pounds from traveling on the Interstate Highway System, leading to higher fuel costs, travel times, and wear on state and local roads.
• Improved transportation infrastructure
Provides $50 billion in transportation bonds to finance roads, bridges, transit, rail, and waterways, serving as a catalyst for thousands of good jobs today and improving the nation’s aging transportation infrastructure.
• Investment in workforce and job training
Provides $1 billion in additional Workforce Investment Act funding to train nearly 300,000 additional workers;
Increases funding for Dislocated Worker programs by $500 million; and
Boosts funding for Youth and Adult training programs by $250 million.
• Assistance for America’s small businesses to encourage growth and job creation
Makes permanent tax incentives to encourage small business investment under the Section 179 expensing limit; and
Renews the provision of tax law allowing restaurants to depreciate equipment over 15 years.
• Restored stability in the housing market and help for homeowners
Bolsters and expands the Federal Housing Administration (FHA) Secure program allowing more eligible homeowners to avoid foreclosure by assisting with refinancing and providing more options to make mortgage payments.
• Tax credit to help consumers purchase clean-burning wood and wood pellet stoves
Similar to legislation offered by Senator Collins earlier this year, and to a provision that was included in another bill that was approved by the Senate, this provision would provide a $500 tax credit for individuals to transition from old wood stores to clean burning wood and wood pellet stoves, which generally retail between $1500 and $3,000. The stoves will help save on energy costs while not polluting the environment like older wood burning stoves often do.