Stimulus package provides relief for businesses buying equipment
By CCJ Staff
The economic stimulus package passed last week by the
U.S. House and Senate and signed by President Bush provides enhanced expensing
and depreciation relief for businesses buying equipment and placing it into
service this year.
A trade or business can depreciate an additional 50 percent of the cost of an
asset acquired and placed into service in 2008. Eligible properties for bonus
depreciation include (1) tangible property that had a recovery period not
exceeding 20 years, (2) purchased computer software and (3) qualified leasehold
improvement property.
Bush signed the two-year $168 billion economic stimulus package on Wednesday,
Feb. 13, hoping it would deliver "a booster shot" to an ailing American economy.
Bush said the world's largest economy had overcome shocks in the past and
expressed confidence that the giant economic aid plan would help the economy
through a "rough patch."
The economic stimulus package, which also includes tax rebates to individual
taxpayers, is effective for calendar year 2008.