This is the widely publicized "bailout." Many changes made due to this act DO apply to individuals to help ease the burden of the current economic situation including the AMT patch and extended many widely used credits the had or were about to expire.

Acts extended

• State and local sales tax deduction - Expired January 1, 2008
• Higher edication tuition deduction - Expired December 31, 2007
• Teachers' classroom expense deduction - Expired December 31, 2007
• Charitable contributions of IRA proceeds - Expired December 31, 2007
• Research tax credit - Expired December 31, 2007

Additions and Enhancements

The child tax credit floor has been reduced to $8,500.

Disaster Relief

Many targeted tax breaks have been created to provide relief for taxpayers affected by disasters such as those resulting from Hurricane's Katrina and Ike. Please consult your accountant or tax professional if this may apply to you.

Energy Incentives

Many energy tax incentives were extended and/or enhanced for producers of renewable energy the use of solar power. Also added was a new credit for taxpayers who purchase a plug-in-electrical vehicle.

Troubled Asset Relief Program (TARP)

This is the provision allowing the government to buy bad debt and troubled assets from banks and other institutions and placed restrictions on executive compensation and golden parachute payments for participating companies.

Basis Reporting

This adjusts the reporting requirements for brokers and the values of publicly traded securities however it will not apply until 2011.