Economic Stimulus For Businesses

摘要

Congress and the president have prescribed powerful medicine to stimulate the U.S. economy. On Feb. 13, President Bush signed the Economic Stimulus Act (ESA). In addition to providing tax rebate checks to middle-income families and making it easier to refinance mortgages, the ESA temporarily reinstates the depreciation bonus and increases Sec. 179 expensing limits. The goal: encourage business purchasing. Under the new law, companies that buy equipment (and other eligible property) in 2008 can depreciate an additional 50 percent of the cost in the first year. To be eligible for bonus depreciation, the equipment must be new and placed in service before Jan. 1, 2009.