Worker, Homeownership, and Business Assistance Act of 2009 (P.L. 111-92)

The Worker, Homeownership, and Business Assistance Act of 2009, P.L. 111-92, extended second-, third-, and fourth-tier emergency unemployment compensation as well as benefits under the Railroad Unemployment Insurance Act. It coordinated federal and state extensions of benefits, provided for funding of emergency unemployment compensation, and extended the 0.2 percent FUTA surtax. The act expanded modernization grants for unemployment resulting from compelling family reasons.

The First-Time Homebuyer Tax Credit has been extended to apply to principal residences purchased before May 1, 2010 (including contracts entered into before May 1, 2010, to close before July 1, 2010). Long-term residents of the same principal resident are now eligible for the credit while special rules apply to individuals on qualified official extended duty outside the United States. The credit phases out for taxpayers with modified adjusted gross income between $125,000 and $145,000 ($225,000 and $245,000 for joint filers).

Additionally, no credit is allowed if the purchase price exceeds $800,000, if the purchaser is under the age of 18 as of the date of purchase, if the property is acquired from a person related to the person acquiring the property (or spouse if married), or if the taxpayer is a dependent of another taxpayer. To receive the credit, taxpayers must attach a properly executed copy of the settlement statement to their tax returns.

For net operating losses, the act amended the rules for losses occurring in 2008 and 2009 generally allowing them to be carried back for up to five years. Special rules, however, apply to TARP recipients and life insurance companies.

It also excluded housing losses as a result of qualified military base realignment and closure from gross income; delayed the application of worldwide allocation of interestfor worldwide affiliated groups; increased the penalty for the failure to file a partnership or S corporation return, and required certain tax preparers to file returns electronically. The act amended the Corporate Estimated Tax Shift Act of 2009, P.L. 111-42, to increase the quarterly percentage due for corporate estimated taxes for a corporation with assets of not less than $1,000,000,000.