Good News for Small Businesses in the Bailout Act

Small businesses will get a helping hand with some key expenses under President Obama’s $787 billion stimulus plan, signed into law on February 17. Around $282 billion of the bill is devoted to tax cuts, including breaks for small businesses. Some of the highlights include: Small businesses will be able to more quickly deduct the cost of investments in plants and equipment from their taxable income. Small businesses will be allowed to recover alternative minimum tax (AMT) and research and development (R&D) credits faster. Small businesses will be allowed to write off up to $250,000 of capital expenditures in the year of acquisition. As a result, 2009 might be a good time to consider upgrading your technology. Your financial advisor can help you determine if any of these tax cuts apply to you. More information; A Breakdown of the stimulus package: http://online.wsj.com/public/resources/documents/STIMULUS_FINAL_0217.html Small Business Association information on stimulus bill: http://www.sba.gov/recovery/index.html Regularly updated stimulus page at Wall Street Journal http://online.wsj.com/public/page/stimulus-package.html