In which I examine the business tax breaks in the final version of the economic stimulus bill signed by President Bush, and whether they’ll actually, you know, help stimulate the economy:
The economic stimulus bill signed into law by President Bush today included one tax break for small businesses added by the Senate, but lost another as Congressional leaders bowed to White House pressure to move quickly without adding too many amendments.
The key addition affecting small businesses is an expansion of “bonus depreciation,” which allows investments in tangible property, computer software, or improvements to leased property to be more speedily depreciated, adding to a business’ tax savings. Businesses of all sizes will be allowed to depreciate in this tax year 50% of the cost of an asset put into use in 2008.
The Senate Finance Committee estimates that this amendment will funnel $43.9 billion in federal tax savings to businesses over the next two years… [read more]