Are there tax incentives included in the Act that could help small businesses?
Michael Stamler: There are a number of them. The Reinvestment act gives small businesses both tax relief and incentives in the form of generous bonus depreciation terms and an extension of Section 179 expensing—which allows a business to fully deduct the cost of property or equipment in the year it was purchased—through 2009. If a business has had net operating losses in the last three to five years, under the Recovery Act, the owner will now be able to carry those losses through as a deduction against current earnings. The Act also lowers estimated tax payments for individuals with adjusted gross incomes under $500,000, provided at least half of that income is earned through a qualifying business. And these are just a few examples. Tax credits are available for businesses who hire disadvantaged employees, such as unemployed veterans, as well as some specific tax credits around the sale of original stocks. Small businesses should work closely with their accountants or accounting teams
