Bill Rys, Tax Counsel of the National Federation of Independent Business, will be my guest this week on our Tips for Entrepreneurs podcast. We’ll be discussing the impact of the federal stimulus plan on you and your small business.
So, if you’re one of America’s 26.8 million small businesses or want to be among those ranks, you might want to tune in/subscribe.
To foster continued small business growth, a stimulus package was just passed in Congress, equal to about 1% of the GDP. There is solid evidence these tactics have worked in the past from the 2002 and 2003 stimulus proposals. Key provisions of the deal include:
- Increased dollar amount for small business expensing limits from $125,000 to $250,000. This will allow small business owners to immediately write off business purchases and will help small business owners expand their businesses and hire new employees.
- Fifty percent bonus depreciation deduction. This provides an additional one-year depreciation deduction value to 50% of the value of the property. Bonus depreciation is an incentive for businesses to invest in their business now, providing an immediate deduction for half the cost of the investment.
Small business owners, America’s job creators, are the engine of our economy. Small businesses are the only sector of the economy creating net new jobs. "It only makes sense that any stimulus package passed to boost the economy includes provisions that will assist small business owners," says Rys.
We’ll elaborate on this topic later this week on the Tips for Entrepreneurs podcast. Talk to you then!