Economic Stimulus Act Of 2008

Economic Stimulus Act Of 2008

Increased Section 179 Expensing for businesses: Now up to a maximum of $250,000 in 2008.

And!

50% first year bonus depreciation: IRS provision applies to software placed in service before January 1, 2009

• Combine tax savings with a Microsoft Financing Offer: Acquire new software solutions today and improve your IT environment while deferring the cash outlay
• Drive business productivity up!
• Enjoy current year tax savings: Improve current year profitability and cash flow while leveraging the benefits of increased future productivity that results from the deployment of new assets
  
  Example of 50% Bonus Depreciation in Action
  

• Spend$300K on upgrading softwareSoftware is treated under tax law as having a 3-year recovery period for depreciation purposes
• Bonus depreciation on $300,000 at 50% is $150,000.00; an additional $50,000 is allowed representing 1/3 the remaining $150,000
• Total tax depreciation for 2008 is $200,000!
  2008 tax savings is $64,000.00 ($200,000 x 32%) assuming a 32% marginal Federal
• Income Tax rate
  Without bonus depreciation: A business could only claim depreciation in the first year of $100,000 (1/3 of $300,000)