Small businesses will get a helping hand with some key expenses under President Obama’s $787 billion stimulus plan, signed into law on February 17. Around $282 billion of the bill is devoted to tax cuts, including breaks for small businesses. Some of the highlights include:
- Small businesses will be able to more quickly deduct the cost of investments in plants and equipment from their taxable income.
- Small businesses will be allowed to recover alternative minimum tax (AMT) and research and development (R&D) credits faster.
- Small businesses will be allowed to write off up to $250,000 of capital expenditures in the year of acquisition.
As a result, 2009 might be a good time to consider upgrading your technology. Your financial advisor can help you determine if any of these tax cuts apply to you.
A Breakdown of the stimulus package:
Small Business Association information on stimulus bill:
Regularly updated stimulus page at Wall Street Journal