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The tax benefits of the American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009 (ARRA) was signed by President Barack Obama on Feb. 17, 2009. Commonly referred to as the Economic Stimulus Package, ARRA was designed to spur economic activity, encourage investment in long-term economic growth, and create new jobs and save existing ones. ARRA also implemented expansive levels of accountability and transparency in government spending.

One of the main areas ARRA will help American families is through tax benefits and incentives for individuals and businesses. ARRA provides $787 billion in funding, including $288 billion in tax cuts and benefits for millions of working families and businesses nationwide. To date, only $99.1 billion of the funding has been paid, leaving the majority of ARRA dollars to provide tax benefits on the 2009 tax return and in the 2010 tax year.