What does President Obama’s Stimulus package mean to your business? The stimulus package also known as the American Recovery and Investment Act of 2009 has numerous provisions to assist your business. The Act provides $720 million to support programs by the Small Business Administration and over $300 million to support entrepreneurship efforts in low income areas. The bill gives businesses three more years to take advantage of the credit that they can take for using equipment that produces electricity through wind energy.
Other aspects of the bill include a special allowance for bonus depreciation. Companies can expense up to $250,000 from new capital equipment purchases. Another important aspect is the delayed recognition of canceled debt. Companies can buy back their own debt at a discount through 2010. Lastly, there is an important provision for small business loss write offs. Businesses with less than $15 billion in earnings are allowed to extend the net operating loss carry back to 5 years instead of the current two year limit.
The bill also supports numerous projects involving road construction projects, broadband technology, and green technology and energy improvements.
These are important new provisions. My hope is that all businesses can find something to take advantage of. The economy is in a recession but my hope is that every business can benefit from these important new provisions. What are some of your thoughts related to the new stimulus package?