On November 6, 2009, President Obama signed the "Workers, Homeownership, and Business Assistance Act of 2009" into law.
 
Highlights of the changes impacting the business and individuals are as follows:
 
Extension of the Five-Year Carryback of NOL's to apply to most taxpayers
Most taxpayers can now make an election to increase the carryback period for net operating losses (NOL's) from 2 years to 3, 4 or 5 years. This election applies to NOL's that are generated after December 31, 2007 but before January 1, 2010. The Act also limits the NOL's that can be carried back to the 5th preceding year to 50% of the taxpayer's taxable income for that 5th preceding year. The NOL's can be carried forward 20 years.
 
Under prior law, only small businesses (with average annual receipts of $15 million or less) could elect to carryback their 2008 net operating losses to 3, 4 or 5 years.
 

Increased Penalty for Failure to File Partnership or S Corporation Returns
The penalty for late filing of a partnership or S Corporation return  has increased for years beginning after December 31, 2009. The penalty is now $195 times the number of partners or shareholder for each month that the failure to file continues, up to a maximum of 12 months.
 

First Time Homebuyer Tax Credit (FTHTC) Extended and Liberalized
The FTHTC is extended to apply to a principal residence purchased by the taxpayer before May 1, 2010. For purchases after November 6, 2009 the phase out of the credit for individual taxpayers would begin at $125,000 ($225,000 for joint filers) of modified adjusted gross income. This is an increase from the prior income limitation.
 
For purchases after November 6, 2009 "long time residents," defined as any individual who maintained the principal residence for any 5-consecutive years during the 8-year period ending on the date of the purchase of a new principal residence, will qualify for a FTHTC of $6,500.
 
The FTHTC cannot be claimed if the purchase price of a new residence exceeds $800,000.