2008 Economic Stimulus Act

2008 Economic Stimulus Act

Provides Tax Benefits to Businesses!

Did you know?

Not only does the Economic Stimulus Act of 2008 provide stimulus payments to individuals, but it also provides incentives to businesses. This incentive includes a 50% depreciation allowance for purchases made in 2008. "Under the new law, a taxpayer is entitled to depreciate 50% of the adjusted basis of certain qualified property during the year that the property is placed in service." To qualify, you must place the property in service between the dates of December 31, 2007 and January 1, 2009.

In addition, the Economic Stimulus Act of 2008 includes an incentive that will increase the small business expensing limitation for the tax year 2008 and the years going forward. What this means to you is that "the qualifiying taxpayer can elect to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years." (source: http://www.irs.gov)

Please check with your certified tax accountant to see how purchasing a new vehicle for your company can benefit your business, as it relates to the 2008 Economic Stimulus Act.