The U.S. Small Business Administration 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 George W. Bush earlier in the year.The package includes the following tax incentives for businesses: a 50% bonus depreciation allowance on equipment purchased and placed in service in calendar 2008 and an almost 100% increase in the amount (from $128,000 to $250,000) that a business can expense for equipment purchased and placed during 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 SBAActing 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 at www.sba.gov/stimulus, contains three resources on the package:
1. A fact sheet providing a clear explanation of the small business tax benefits.
2. A deprecation calculator providing an estimate of the first-year depreciation available under the provisions.
3. An on line seminar featuring a tutorial summarizing the tax benefits and concluding 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. Small business people may also refer to the IRS Web site: http://www.irs.gov/news-room/article/0, id=179227,00. html for additional information regarding tax changes.