$168 Billion Stimulus Bill Gives Direct Assistance to Small Businesses

Last week's $168 billion stimulus bill signing did garner some good news for small businesses, witness the NY Times post by Mickey Meece. He notes that the bill gives two gifts to small businesses,

1) A bonus depreciation increase of 50% of the cost of a tangible asset for immediate expensing, (an overall tax savings estimated to cost the government close to $44 billion over the next two years); and
2) An increase in the amount allowed for Section 179 (movable assets) expensing to $250,000 for 2008, up from $128,000.

These inclusions will encourage investment in both fixed and movable assets. Limitations are in place for SUV's among other assets, so be sure to consult your accountant for particulars.

At the end of the day, this will induce increased spending where the spender is seeking to reduce their overall tax liability.