WASHINGTON—The SBA has created an online tax savings resource center to help small businesses understand how they can benefit from the 2008 economic stimulus package signed into law by President Bush earlier this year.
The package includes the following tax incentives for businesses: a 50 percent bonus depreciation allowance on equipment purchased and placed in service in calendar 2008 and an almost 100 percent increase in the amount (from $128,000 to $250,000) that a business can expense for equipment purchased and placed in the business tax year beginning in 2008.
“The stimulus package is designed to spur the economy by putting money back into the pockets of American workers and encouraging small businesses to invest and expand,” said SBA Acting Administrator Jovita Carranza. “However, many small business owners are unaware of how it could boost their bottom line. In the roundtables I held with dozens of small business owners last week on tax policy, many were amazed to learn how much their companies could benefit from the temporary tax incentives in the package.”
SBA’s new tax savings resource center demonstrates the benefits entrepreneurs can gain from the 2008 economic stimulus package. The center, located on www.sba.gov/stimulus, contains three resources on the package:
1. Fact sheet. The fact sheet provides a clear explanation of the small business tax benefits.
2. Depreciation calculator. This useful tool provides an estimate of the first-year depreciation available under the provisions.
3. Online seminar. This brief tutorial summarizes the tax benefits and concludes with the depreciation calculator.
These resources should help small businesses take advantage of the stimulus package. However, because there are exceptions and additional requirements, small businesses are encouraged to contact their tax advisor to determine exactly how the provisions and implementing tax code of the 2008 economic stimulus package apply to their business.
They may refer to the IRS Web site: http://www.irs.gov/newsroom/article/0,,id=179227,00.html for additional information regarding tax changes.