Stimulus Plan Updates

Stimulus Plan Tax Breaks! Employers should be aware that the Stimulus Bill President Obama signed on February 17 (also known as the American Recovery and Reinvestment Tax Act of 2009) contains a number of provisions that can reduce businesses’ tax burden for 2009. Although each measure on its own may represent a modest tax savings, as a whole they can have a significant impact for employers -- particularly small businesses. An accountant will likely be needed to help employers determine which of the programs and credits described below apply to their specific business. Stimulus Plan Information Technology Bonus Depreciation!  Employers who have considered updating their computer and technology infrastructure have a good reason to do so now: the Stimulus Bill expands the current bonus depreciation provision through 2009. This means that equipment purchased in 2008 or 2009 can be depreciated at a faster rate -- up to 50% of the cost of a piece of equipment may be immediately depreciated (and the depreciation translates into a credit on the employer’s tax returns).