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Article: Incentive to expand, buy equipment.(ECONOMIC STIMULUS ACT OF 2008)
- Article from:
- Official Board Markets
- Article date:
- June 7, 2008
- Author:
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The Economic Stimulus Act of 2008, recently introduced by Congress, will not only allow rebates for individual tax payers, but will also create additional incentives for commercial businesses. Previously, bonus depreciation was introduced as a way to help increase cash flow and stimulate the economy during economic downturns.
This bill gives companies a 50 percent bonus deduction on new equipment and increases the limit on expenses that small businesses can deduct from annual income, raising it from $125,000 to $250,000.
The result is an increased depreciation deduction, which can lower a company's tax liability. Only those companies that are considering ...