The Bush Administration and House leaders Democrat Nancy
Pelosi and Republican John Boehner reached an agreement on
January 24, 2008 regarding a stimulus package. This stimulus
package includes tax relief targeted at both businesses and
individuals. As discussed below, the Senate may well have
additional individual and business provisions before
legislation is passed.
Business Incentives
The package will provide for bonus depreciation equal to 50%
of the cost of new equipment placed in service in 2008.
Additionally, for 2008, the limit on Section 179 expensing will
be increased from $125,000 to $250,000. It appears that Section
179 expensing would continue to phase out dollar for dollar by
the amount by which the cost of Section 179 property placed in
service during 2008 exceeds $500,000. Thus, for example, if a
business places $500,000 worth of purchased depreciable
equipment in service in 2008,
