WATERLOO -- In supporting a $700 billion Wall Street rescue package on Friday, Rep. Bruce Braley, D-Waterloo, cited billions of dollars in tax relief to be delivered to Iowans.

Braley in particular trumpeted a $4.6 billion tax package for disaster relief. The measure will allow those affected by natural disasters in the Midwest to, among other things, apply for tax credits and waive fees when dipping into 401K or IRA savings accounts.

"This way, people aren't faced with the double-whammy of losing their home, losing their assets and still facing a tax burden," he said.

Other tax relief for individuals includes a suspension of the alternative minimum tax and an expansion of the child income tax credit.

For Iowa businesses, Braley said the bill will provide a renewable energy production tax credit, renewable energy bonds, and funding for small business research and development.

Local economic experts said these additional measures likely will have the greatest immediate impact on the most Iowans.

The $700 billion Wall Street bailout was passed by Congress to save the country's investment firms from financial disaster.

Without action, a worsening credit crunch would further pinch individuals, businesses, colleges and banks across the country.

Experts say the Cedar Valley, despite some anxiety, have so far avoided the economic downturn being felt in other parts of the country.

"We hear a lot of questions on the street, 'Are our dollars safe?" said Rich Carlson, President and CEO of First National Bank in Waverly. "We feel we're in a good area of the country with more stability. We didn't have the rapid rise in home values, so we didn't have the drop."

In fact, small businesses have not sought out any help at University of Northern Iowa's Regional Business Center for a credit squeeze that some experts fear could cripple the economy, said Mike Hahn, senior program manager for the center.

Instead, Hahn said he has focused nearly all of his efforts helping businesses recover from this summer's crippling tornadoes and floods.

"That would be very welcome," Hahn said of the disaster relief tax package. "We still have businesses that unfortunately haven't been operating since before the floods and tornadoes. They need additional help in getting back up on their feet."

Congress faced some scrutiny for passing about $150 billion in additional spending as the national debt continues to skyrocket and an economic recession possibly looms.

Among the most mocked items: Tax benefits for wooden arrow manufacturers, rum producers in Puerto Rico and the Virgin Islands and film and television producers.

Braley acknowledged the bill included unnecessary spending.

"This is not the bill I would have drafted," Braley said.

Contact Jens Manuel Krogstad at (319) 291-1580 or jens.krogstad@wcfcourier.com.