03/07/2008
Small business owners will soon see the benefits of the recently passed economic stimulus package, which includes an increase in small business expensing limits, a 50 percent bonus depreciation and rebate checks sent out to many who paid taxes in 2007.
NFIB's federal lobbying team led the effort to ensure the final package contained provisions to help small business owners grow their businesses. The stimulus doubles the current small business expensing limit from $125,000 to $250,000, providing those who invest less than $800,000 in their business this year with an immediate deduction for the entire cost of certain investments made in their business, such as purchasing new equipment.
The stimulus also creates a 50 percent bonus depreciation for certain business investments, allowing small business owners to take an immediate deduction rather than having to deduct the value over several years. This deduction will apply to investments of more than $800,000.
And as a bonus for this tax season, most taxpayers will receive rebate checks for $600 (individuals) or $1,200 (married couples), and $300 per child. The checks are expected to be sent out in May, and will also aid small business owners in expanding their businesses.
NFIB was a strong force in the passage of the economic stimulus package, and was the only group lobbying for the expensing increases. We are pleased that Congress supports putting money back in the hands of America's No. 1 job creators, and recognizes that small business is a driving force of the economy.
