News Briefs

Businesses to benefit from stimulus package

On top of providing stimulus payments to individuals, the 2008 Economic Stimulus Act provides incentives to businesses, including a 50 percent depreciation allowance for 2008 purchases and an increase in the small business expensing limitation.

Under the new law, tax paying businesses are entitled to depreciate 50 percent of the adjusted basis of certain qualified property during the year it is placed in service. To qualify, the property must be placed in service after Dec. 31, 2007, but before Jan. 1, 2009.

For the expensing incentive, qualifyied taxpayers can elect to treat the cost of certain property as an expense and deduct it in the year the property – commonly referred to as section 179 property – is placed in service instead of depreciating it over several years.

Qualifying businesses can expense up to $250,000 of such property bought by the taxpayer in 2008.