Quickbooks, Bookkeeping and Accounting Blog

The 2008 Economic Stimulus Act, noted mostly for the stimulus payments it provides to individuals (see Bush Signs Economic Stimulus Package; Most People Will Receive Tax Rebates), provides two important incentives to businesses:

• 50 Percent Special Depreciation Allowance
  Businesses will be able to depreciate 50% of the adjusted basis of certain qualified assets during the year the asset is placed in service. To qualify, the asset must be placed in service in calendar year 2008.
• Section 179 Expensing
  Businesses will be able to expense up to $250,000 worth of section 179 property purchased in 2008, as opposed to just $128,000 had the 2008 Economic Stimulus Act not been passed. However, the $250,000 amount is reduced if the business places more than $800,000 of section 179 property into place in 2008.