Public Law 110-343

{{main|Emergency Economic Stabilization Act of 2008}}

The first version of the Emergency Economic Stabilization Act of 2008 (structured as an amendment to {{USBill|110|H.R.|3997}}) was rejected by the House of Representatives on September 29, $700 billion (~${{Format price|{{Inflation|index=US-GDP|value=700000000000|start_year=2008}}}} in {{Inflation/year|US-GDP}}).

After its defeat, Senate leaders decided to amend an existing bill from the House in order to circumvent the revenue origination clause of U.S. Constitution, and chose H.R. 1424 as the vehicle for the legislation.

{{cite news | first=Robert | last= Pear | title= Crisis Puts Tax Moves Into Play | date= 2008-10-02| url = https://www.nytimes.com/2008/10/02/business/02tax.html | work = New York Times | access-date = 2008-10-05 | quote = The House jealously guards its power to originate tax bills. The Constitution says, "All bills for raising revenue shall originate in the House of Representatives; but the Senate may propose or concur with amendments as on other bills." The Senate version of the bailout package is technically an amendment to a House bill that would require group health insurance plans to provide equivalence, or parity, in the coverage of mental and physical illnesses.}}

{{cite news | title= Calendar of Business: Wednesday, October 1, 2008 (Legislative Day, September 17, 2008) | date= 2008-10-01 | publisher= Clerk of the United States Senate / Government Printing Office | url = http://www.gpoaccess.gov/calendars/dailysenate/sc01oc.pdf | work = Calendar of the United States Senate | access-date = 2008-10-01 }}

{{cite web |url=http://thehill.com/leading-the-news/senate-easily-passed-bailout-2008-10-01.html |archive-url=https://web.archive.org/web/20081002203737/http://thehill.com/leading-the-news/senate-easily-passed-bailout-2008-10-01.html |url-status=dead |archive-date=October 2, 2008 |title=Senate easily passes bailout |first=J. Taylor |last=Rushing |date=2008-10-01 |quote=The Senate’s action was a dramatic and rare move that circumvented a constitutional requirement that tax legislation must originate in the House | work = The Hill | access-date = 2008-10-05 }}

{{cite news |first = John E.| last = Mulligan | url=http://www.projo.com/news/content/patrick_kennedy_bill_10-02-08_PEBPTH3_v12.19778fa.html |title=Kennedy's unintended role in history | work =The Providence Journal |date=2008-10-02| access-date =2008-10-02 | quote= Once the Senate added those provisions to the rescue bill, it qualified as a tax bill, which the upper chamber is constitutionally prohibited from originating. In order to get around the Constitution, the leaders turned to the time-honored stratagem of finding a live but dormant House bill — [Patrick] Kennedy’s mental-health parity bill — to use as a shell.}}

H.R. 1424 was sponsored by United States House Representative Patrick J. Kennedy.

On September 30, 2008, Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell announced the proposed draft had been formalized for the amendment that would transform H.R. 1424 into the Senate version of the Emergency Economic Stabilization Act of 2008.

{{cite web |title=Senate Bailout Vote Will Put House on Spot Again |first=Benton |last=Ives |author2=Richard Rubin |author3=Joseph J. Schatz |url=http://www.cqpolitics.com/wmspage.cfm?docID=news-000002968192 | work = QQ Politics | publisher = Congressional Quarterly |date=2008-10-01}}

{{cite news |url=https://money.cnn.com/2008/09/30/news/economy/bailout_tuesday/?postversion=2008100104

|title=Bailout: Senate to vote Wednesday |publisher=CNNMoney.com |date=2008-10-01 | access-date=2010-05-22}}

{{cite news |title= Obama, McCain stress urgency of bailout vote |url=http://www.cnn.com/2008/POLITICS/10/01/campaign.wrap/?iref=hpmostpop | publisher=CNN |date=2008-10-01 | access-date=2010-05-22}}

On October 1, 2008, the amendment to H.R. 1424 was approved by a vote of 74 to 25, and the entire amended bill was passed by 74 to 25, (with one not voting, the cancer-stricken Senator Ted Kennedy). The bill was returned to the House for consideration.

{{cite news | first= Carl | last= Hulse |author2=David M. Herszenhorn | title= Adding Sweeteners, Senate Passes Bailout Plan | date= 2008-10-01| url = https://www.nytimes.com/2008/10/02/business/02bailout.html?hp=&adxnnlx=1222912061-mO3gwPp%20F69CybU450tXvQ&pagewanted=all | work = New York Times | access-date = 2008-10-01 }}

United States Senate. 110th Congress (2nd Session) [https://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00213 Roll call vote #213]

On October 3, 2008, the bill as passed by the Senate was accepted by a vote of 263 to 171 in the House. Every member of the House voted, though the House had a vacant seat of the recently deceased Stephanie Tubbs Jones of Ohio. President George W. Bush signed the bill into law a few hours later.

{{cite news | first= Dave | last= Burdick | title= House Bailout Bill Friday Vote: YEA - 263, NAY - 171 | date= 2008-10-03 | url = http://www.huffingtonpost.com/2008/10/02/house-bailout-vote-encore_n_131222.html | work = Huffington Post | access-date = 2008-10-03 }}

United States House of Representatives. 110th Congress (2nd Session)

[http://clerk.house.gov/cgi-bin/vote.asp?year=2008&rollnumber=681 Vote Number 681]

{{main|Emergency Economic Stabilization Act of 2008|Troubled Asset Relief Program}}

The first title of the act included The Emergency Economic Stabilization Act of 2008 which created the Troubled Asset Relief Program in an effort to bail out firms holding mortgage-backed securities and to restore liquidity to the credit markets.{{cite web | url=http://tbm.thebigmoney.com/articles/juicy-bits/2008/10/01/bailout-baloney?page=full |title=Bailout Baloney: What do wooden children's arrows have to do with the credit crisis? |first=Karim |last=Bardeesy |publisher=The Big Money |date=2008-10-02}}

The Energy Improvement and Extension Act of 2008 create a new tax credit for qualified plug-in hybrid electric vehicles "purchased between January 1, 2009, and December 31, 2014."{{Cite web |title=Alternative Fuels Data Center: Energy Improvement and Extension Act of 2008 |url=https://afdc.energy.gov/laws/eiea2008.html |access-date=2023-01-31 |website=afdc.energy.gov |language=en}} This credit was phased out once 250,000 vehicles were sold. The credit is a base $2,500 plus $417 for each kWh of battery pack capacity in excess of 4 kWh to a maximum of $15,000 for any vehicle with a gross vehicle weight rating of more than {{convert|26000|lb}} {{cite web|url=http://www.calcars.org/calcars-news/1008.html|title=$1Billion Plug-In Incentives Will Speed Auto Industry's Transformation|website=www.calcars.org|access-date=9 September 2018}} and up to $7,500 for 12 kWh or more in passenger cars (vehicles up to {{convert|8500|lb}} ).

The act also "extended production tax credits (PTC) and investment tax credits (ITC) for various renewable energy sources, which were due to expire at the end of 2008."{{Cite web |title=Energy Improvement and Extension Act 2008 - Tax Incentives – Policies |url=https://www.iea.org/policies/1817-energy-improvement-and-extension-act-2008-tax-incentives |access-date=2023-01-31 |website=IEA |language=en-GB}} Included extensions were "energy efficiency tax deductions for commercial buildings through 2013" as well as adding a $300 tax credit for the installation of "energy-efficient biomass fuel stoves" in homes during 2009.

Also included in the act was $800 million in funding for Qualified Energy Conservation Bonds, which were to be issued by state and local governments. Ultimately, the Tax Cuts and Jobs Act of 2017 would repeal the tax credit bonds effective January 1, 2018.{{Cite web |title=Qualified Energy Conservation Bonds |url=https://www.energy.gov/scep/slsc/qualified-energy-conservation-bonds |access-date=2023-01-31 |website=Energy.gov |language=en}}

Other existing tax credits for renewable energy initiatives, including cellulosic ethanol and biodiesel development, and wind, solar, geothermal and hydro-electric power were initiated.{{Cite web |title=Used Chevrolet Volt for Sale Near Me |url=http://blogs.edmunds.com/greencaradvisor/2008/10/plug-in-tax-credits-hitching-ride-on-wall-street-bail-out-bill.html |url-status=dead |archive-url=https://web.archive.org/web/20081207023037/http://blogs.edmunds.com/greencaradvisor/2008/10/plug-in-tax-credits-hitching-ride-on-wall-street-bail-out-bill.html |archive-date=December 7, 2008 |access-date=January 31, 2023 |website=Edmunds.com}} Electricity had its definition changed to be qualified as an alternative fuel.

Separately, this section also requires the reporting of cost basis by brokers to the IRS for certain securities acquired after 2011 – see covered security.

The Tax Extenders and Alternative Minimum Tax Relief Act includes $100 billion in tax breaks for businesses and the middle class, plus a provision to raise the cap on federal deposit insurance from $100,000 to $250,000.{{cite web | url=http://archive.11alive.com/news/article/121896/12/Bush-Lobbies-Congress-To-Pass-700B-Bailout-Bill- | title=Bush lobbies Congress to pass $700B bailout bill | first=Charles | last=Babington |author2=Julie Hirsschfeld Davis |publisher=Associated Press | date=2009-10-02}}

The Act keeps the alternative minimum tax from hitting 20 million middle-income Americans. It provides $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.

As a whole, the Senate tax package would cost $150.5 billion over 10 years. Roughly $43.5 billion would be offset by several revenue-raising provisions. Hedge fund managers would be forbidden from using offshore corporations to defer paying taxes.

The bill freezes a tax deduction that oil and gas companies get for certain domestic production activities. The deduction, now 6 percent, is scheduled to rise to 9 percent in 2010.

The provisions of the tax bill included:

{{cite news |first=Jim |last=Abrams | title= Stalled tax relief bill attached to rescue package | url=http://www.highbeam.com/doc/1A1-D93HTSO00.html | archive-url=https://web.archive.org/web/20150924041515/http://www.highbeam.com/doc/1A1-D93HTSO00.html | url-status=dead | archive-date=2015-09-24 |agency=Associated Press |date=2008-10-01 |access-date= 2008-10-01}}{{cite news|author1=Hulse, Carl |author2=Pear, Robert |name-list-style=amp | title= Senate to Vote Today on the Bailout Plan |url=https://www.nytimes.com/2008/10/02/business/02bailout.html |date=2008-10-01 |work=New York Times |access-date=2008-10-01 }}

• A temporary increase in Federal Deposit Insurance Corporation deposit insurance limit from $100,000 to $250,000 until December 2009

{{cite web|last=Orszag |first= Peter R.|author-link=Peter R. Orszag |title=CBO's Analysis of Dodd Substitute Amendment for H.R. 1424|url=http://www.cbo.gov/ftpdocs/98xx/doc9852/hr1424Dodd.pdf|date=October 1, 2008|publisher=Congressional Budget Office|pages=2|access-date=2008-10-03}}

• Tax breaks for businesses
• Tax credits for the use of alternative energy and plug-in hybrids
• Tax credits for research and development
• Expansion of the child tax credit
• Protection from the Alternative Minimum Tax
• Tax reductions for victims of severe weather (e.g. tornadoes, floods, hurricanes)
• Extension of unemployment insurance
• A USD $1,000 tax credit for low income homeowners
• Tax breaks and credit extensions for the following:
• "Certain wooden arrows designed for use by children" (Sec 503){{cite news |title=What an Arrow Shaft Has to Do With a $700 Billion Rescue Plan |first=David |last=Stout |work=The New York Times |date=October 2, 2008 |url=https://www.nytimes.com/2008/10/03/business/03sweetener.html?_r=1&ref=business }}
• Wool research (Sec. 325)
• Film and television productions (Sec. 502)
• Litigants in the 1989 Exxon-Valdez oil spill (Sec. 504)
• Virgin Island and Puerto Rican rum (Section 308)
• American Samoa (Sec. 309)
• Mine rescue teams (Sec. 310)
• Mine safety equipment (Sec. 311)
• Domestic production activities in Puerto Rico (Sec. 312)
• Indian tribes (Sec. 314, 315)
• Railroads (Sec. 316)
• Auto racing tracks (317)
• District of Columbia (Sec. 322)

{{main|Mental Health Parity Act#Mental Health Parity and Addiction Equity Act}}

The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (a part of Division C) mandates that if U.S. health insurance companies provide coverage for mental health and substance abuse, the coverage must be equal for conditions such as psychological disorders, alcoholism, and drug addiction.{{cite web|url=http://www.chron.com/disp/story.mpl/editorial/6043529.html|title=Equal treatment: A bailout law bonus — equal coverage for mental and physical illness|date=2008-10-06|work=Houston Chronicle}}{{cite news | first=Aaron | last=Glantz | title=U.S. Insurers Told to Cover Mental Health Equally | date=2008-10-07 | url =http://us.oneworld.net/places/yemen/-/article/357889-insurers-required-cover-mental-health-equally | work =OneWorld | access-date = 2008-10-08 }}

This act continues and expands upon the previous Mental Health Parity Act of 1996. It states that financial requirements such as deductibles and copayments and lifetime or dollar limits to mental health benefits and substance abuse disorder benefits should be no more restrictive than those on medical and surgical benefits.{{cite web|title=Fact Sheet: The Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA)|url=http://www.dol.gov/ebsa/newsroom/fsmhpaea.html|publisher=U.S. Department of Labor|access-date=10 December 2013}} MHPAEA applies to employer-sponsored health insurance plans with more than 50 employees, though parity is also extended to small group and individual plans under the Affordable Care Act.{{cite web|last1=Beronio |first1=Kirsten |last2=Po |first2=Rosa |last3=Skopec |first3=Laura |last4=Glied |first4=Sherry|author-link4=Sherry Glied |title=Affordable Care Act Expands Mental Health and Substance Use Disorder Benefits and Federal Parity Protections for 62 Million Americans|url=http://aspe.hhs.gov/health/reports/2013/mental/rb_mental.cfm|access-date=10 December 2013|date=February 20, 2013 |website=ASPE: Office of The Assistant Secretary for Planning and Evaluation |publisher=U.S. Department of Health and Human Services }}

The Secure Rural Schools and Community Self-Determination Act of 2000 (a part of Division C) provided $1.645 billion (~${{Format price|{{Inflation|index=US-GDP|value=1645000000|start_year=2000}}}} in {{Inflation/year|US-GDP}}) in funding over a four-year period for re-authorization of the aforementioned act. Original funding for the "authorization for the program expired in 2006" followed by Congress providing one year extensions in the intervening periods.{{Cite web |title=President Signs Funding Measure for Four-Year Extension of Secure Rural Schools Program |url=https://www.feinstein.senate.gov/public/index.cfm/2008/10/c43ed615-926a-44e7-5024-0b27d4403e4f-post |access-date=2023-01-31 |website=United States Senator for California |language=en}} The funding was distributed to states "to improve cooperative relationships among—the people that use and care for Federal land".

The Act increased the statutory limit on the public debt by US$700 billion to US$11.3 trillion. However, the legislation is designed to have a net zero long-term cost, and includes language that mandates the President and Congress to develop a plan to recoup any money that is not recouped within 5 years.{{cite news | title = H.R.1424 | date = 2008-10-03 | publisher = Library of Congress | url = http://thomas.loc.gov/cgi-bin/bdquery/z?d110:HR1424: | work = THOMAS | access-date = 2008-10-03 | archive-date = 2008-09-23 | archive-url = https://web.archive.org/web/20080923232512/http://thomas.loc.gov/cgi-bin/bdquery/z?d110:hr1424: | url-status = dead }} (Access to legislative history of H.R. 1424){{cite web|url=http://www.cbo.gov/ftpdocs/98xx/doc9852/hr1424Dodd.htm|title=Letter from Congressional Budget Office Director|last=Orszag|first=Peter|date=2008-10-01|publisher=Congressional Budget Office|access-date=9 May 2010|quote=That net cost is likely to be substantially less than $700 billion but is more likely than not to be greater than zero.}}

{{Expand section|date=January 2023}}

Supporters of the bill believed that it was necessary in "preventing the collapse of the financial system and a deep recession".{{Cite web |title=Emergency Economic Stabilization Act of 2008 {{!}} United States legislation {{!}} Britannica |url=https://www.britannica.com/topic/Emergency-Economic-Stabilization-Act-of-2008 |access-date=2023-01-31 |website=www.britannica.com |language=en}} Critics asserted that the bill "unfairly benefited investors" while also failing to provide an adequate response to the economic crisis of the time. Journalists commented that portions of the bill contained earmarks and pork barrel spending.{{cite web|title=Bailout bill brings home the bacon|url=http://www.newsday.com/services/newspaper/printedition/saturday/news/ny-bzpork045869383oct04,0,7415762.story|publisher=Newsday|first=James|last=Bernstein|date=2008-10-04}}{{cite news|url=http://voices.washingtonpost.com/the-trail/2008/10/03/with_bailout_vote_mccain_voted.html?hpid=topnews|archive-url=https://web.archive.org/web/20120323152932/http://voices.washingtonpost.com/the-trail/2008/10/03/with_bailout_vote_mccain_voted.html?hpid=topnews|url-status=dead|archive-date=March 23, 2012|title=With Bailout Vote, McCain Voted for Earmarks|first=Michael|last=Shear|newspaper=Washington Post|date=2008-10-03}}{{cite web|url=http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/10/03/MNR813AHDN.DTL|title=Billions in earmarks in Senate's bailout bill|first=Zachary|last=Coile|publisher=San Francisco Chronicle|date=2008-10-03}}{{cite web | url=http://baltimorechronicle.com/2008/092908Lendman.shtml|title=Grand Theft America|publisher=Baltimore Chronicle|first=Stephen|last=Lendman}}{{cite news|first=Jim |last=Popkin |title=Critics say bailout bill is stuffed with billions in pork |date=2008-10-03 |publisher=MSNBC |url=http://deepbackground.msnbc.msn.com/archive/2008/10/03/1489413.aspx |access-date=2008-10-04 |url-status=dead |archive-url=https://web.archive.org/web/20081005153433/http://deepbackground.msnbc.msn.com/archive/2008/10/03/1489413.aspx |archive-date=October 5, 2008 }}{{cite news | first=Sara | last=Kugler | title=McCain struggles to explain support for bailout | date=2008-10-02 | publisher=USA Today | url =http://usatoday30.usatoday.com/news/politics/2008-10-02-2959281033_x.htm | agency =Associated Press | access-date = September 16, 2012 }}

{{Reflist}}

{{Wikisource}}

• [https://www.govinfo.gov/content/pkg/COMPS-8925/uslm/COMPS-8925.xml Emergency Economic Stabilization Act of 2008] as amended ([https://www.govinfo.gov/content/pkg/COMPS-8925/pdf/COMPS-8925.pdf PDF]/[https://www.govinfo.gov/app/details/COMPS-8925/ details]) in the GPO [https://www.govinfo.gov/help/comps Statute Compilations collection]
• [https://www.govinfo.gov/link/statute/110/public/343?link-type=pdf&.pdf Public Law 110-343] as enacted ([https://www.govinfo.gov/link/statute/110/public/343?link-type=details details]) in the US Statutes at Large
• {{USBill|110|hr|1424}} on Congress.gov
• {{USBill|110|hr|3997}} on Congress.gov
• [http://clerk.house.gov/evs/2008/roll681.xml House roll call vote]

{{Economic Crisis}}

{{Presidency of George W. Bush}}

{{US_tax_acts}}

Category:United States federal financial legislation

Category:United States federal taxation legislation

Category:United States federal health legislation

Category:Acts of the 110th United States Congress

Category:Troubled Asset Relief Program

Category:Renewable energy law

Category:October 2008 in the United States