The Society of the Plastics Industry Inc.'s blog, "In the Hopper," today notes some tax-related business-friendly items in the recently adopted federal stimulus package. Blogger Jon Kurrle recommends consulting with your company's tax professional, and notes:
Sales forces would do well to explore some positive tinkering the new law has done with depreciation allowances. Basic tax law allows customers to recover (tax jargon for "write off") the cost of capital purchases over an extended time frame. Most in the business community agree that this schedule is outdated, doesn't reflect the rapid churn of the 21st century economy, and puts investment in the U.S. at a disadvantage in the globally competitive environment. The new law jump starts that write off schedule by allowing customers to immediately write off 50 percent of purchases. This so-called "bonus depreciation" is an incentive for customers to buy, and there's more: since this particular aspect of the stimulus package expires at the end of 2009, there's also an incentive for them to buy soon.There's also information on carrying back losses for small companies, and more. Check out "In the Hopper" for more details.