American Recovery and Reinvestment Tax Act of 2009 (H.R.1)

The American Recovery and Reinvestment Tax Act of 2009 (H.R.1) extends the 50 percent first-year bonus depreciation allowed under the 2008 Economic Stimulus Act through 2009. It also increases Code Section 179 expensing amounts to 2009, provides for a five year (rather than two-year) carry back of net operating losses, and provides other business related incentives.

Economic Stimulus Act of 2008 (H.R 5140)

The Economic Stimulus Act of 2008 (H.R. 5140) was signed on February 7 by the senate and President Bush applauded the legislation on February 13. The moment the bill was passed, the Treasury Department and IRS immediately began preparations to issue the rebate check.

The main objective of the new act is to jumpstart the U.S economy (estimated to save approx $50 billion) and encourage American businesses to invest more due to enhancement in tax incentives.

The Economic Stimulus Act of 2008 contains two provisions that provide tax benefits for businesses. The first provision increases the limit up to which a business can expense property purchased and place in service during its 2008 tax year. The second provision provides an additional 50 percent special depreciation allowance for property acquired and placed in service during calendar year 2008.

Compliancy with the Economic Stimulus Act 2008 and 2009

Asset4000 is fully compliant with the Economic Stimulus Act 2008 and the American Recovery and Reinvestment Tax Act of 2009.
Property can be expensed by Section 179 deductions based on the 2008 act.
Additional 50% bonus depreciation can be expensed to take further tax benefits.
Helps significantly reduce the 2008 corporate tax burden.