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March 2009
Special Issue:
American Recovery and Reinvestment Act of 2009 Newsletter |
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On February 17, 2009 President Obama signed the American Recovery and Reinvestment Act of 2009 (ARRA), more commonly referred to as the stimulus bill. The legislation is an estimated $787 billion package of spending provisions and tax incentives created to aid with the financial and economic crisis currently facing the United States.
Along with the articles below that discuss various aspects of the stimulus bill, Ice Miller has designed a Web site regarding the stimulus bill and how it may impact businesses. The Web site includes additional articles and bulletins, a comprehensive chart, links to various resources, and a blog.
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Impact on Employers
Employers take heed! The stimulus bill contains a number of provisions of importance to employers. If your business will receive funds under the Troubled Asset Relief Program (TARP), or any other stimulus program, it is critical that you are aware of these provisions.
Read the entire article on the impact the stimulus bill will have on employers.
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Debt Restructuring Tax Relief
The stimulus bill includes few provisions that will have an impact on private equity and venture capital funds. One provision that could affect private equity funds and their portfolio companies is a tax provision that will permit companies to restructure their outstanding troubled debt and defer the tax consequences thereof for five years. The provision will allow companies to more easily deleverage their balance sheets, and thus should be considered by private equity funds and their portfolio companies which have outstanding debt.
Read the entire article on debt restructuring tax relief.
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Municipal Bonds
The stimulus bill modifies several federal tax laws affecting tax-exempt bonds and governmental entities, including the ability for governments to issue tax-exempt bonds at lower interest rates for many private businesses that would not have qualified under pre-stimulus bill rules. The stimulus bill also creates new types of tax-credit bonds for local government projects called Build America Bonds and increases the authorization for tax credit bonds for school construction, energy conservation and renewable energy projects.
Read the entire article on municipal bonds.
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New Federal Income Tax Credit for Investments in
Advanced Energy Facilities
The stimulus bill adds a new investment tax credit to the Internal Revenue Code called the "qualifying advanced energy project credit." The credit for any tax year generally is an amount equal to 30 percent of the qualified investment for such tax year with respect to any qualifying advanced energy project of the taxpayer.
Read the entire article on the new tax credit.
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Hiring New H-1B Workers
The stimulus bill includes language that places additional obligations on H-1B employers receiving funding under the Troubled Asset Relief Program (TARP) or under Section 13 of the Federal Reserve Act (authorizing the Federal Reserve's "Discount Window" for short-term, secured loans to financial institutions and other companies).
Effective immediately, the stimulus bill makes it unlawful for recipients of such funding to hire a new H-1B worker unless the company complies with certain conditions previously imposed exclusively on "H-1B dependent employers."
As a reminder, on April 1, 2009, Citizenship and Immigration Services (CIS, formerly INS) will begin accepting H-1B temporary worker petitions for the 2010 Fiscal Year. If approved, H-1B status would become effective October 1, 2009.
Read the entire article on the H-1B visa.
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Brownfields Redevelopment
The stimulus bill encourages state and local governments, as well as their partners in the private sector, to take advantage of this funding for brownfields redevelopment. The purpose of this bill is to stimulate the economy immediately, and this money will be allocated to qualified and interested parties soon. The time to act is now.
Read the entire article on the stimulus bill and brownfields redevelopment.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances. |
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