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The Economic Stimulus Act of 2008
(With permission from AICC BoxScore)
"Let the Government make the first year's payment - Act lll"
Every once in a while, our Federal government passes an economic stimulus act that contains provisions that will actually provide long term help to the economy. While sending $300 to $1,200 "rebate" checks to pretty much everyone who files a tax return makes good headlines for the newspapers, the important provisions in this bill relate to extra depreciation allowances for new investments in businesses. Congress did this successfully in 2001 with a 30% first year bonus depreciation allowance and again in 2003 with a 50% bonus first year depreciation allowance. This time they've added a $250,000 first year expensing allowance (an increase from the current $128,000 under Section 179) to a 50% first year bonus allowance, which hopefully will make 2008 a banner year for business investment in new and upgraded equipment. What they have done is "piggybacked" this new law on the previous two laws (as opposed to creating it from scratch), so that all of the rules should be the same as they were before.
Click here for a PDF of the complete article, AICC BoxScore March / April 2008.
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