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ECONOMIC STIMULUS BILL HAS INCENTIVES FOR EQUIPMENT PURCHASES
Although the business incentives in the new Economic Stimulus Act of 2008 have been overshadowed in the news by the individual tax rebates, the business tax breaks are very valuable. This can be broken down into two primary areas:
Expensing election for Small Business
For equipment purchased (and placed in service) for tax years beginning in 2008, 100% of the cost of the equipment can be written off for tax purposes, UP TO $250,000. Remember, the equipment has to be placed in service in 2008!
Temporary bonus depreciation
The 50% bonus depreciation can be taken even if you exceed the $1,050,000 of equipment purchased in
2008 so large business can take advantage of this provision. Also, bonus depreciation is only available for new equipment (not used).
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