article, via our accountants Linkenheimer LLP
, has pros and cons of the current Stimulus package. Read the entire article or, here are are the highlights for businesses, excerpted from the article.
Tax cuts for businesses
The case for it: Obama’s plan seeks to help ease the tax burden for small businesses, as well as allow companies suffering losses to get some tax relief by applying losses to more years in which they booked a profit.
The case against it: Opponents say too small of a percentage of the total package goes to business tax breaks.
Small business write-offs: Obama would increase the amount of expenses small businesses can write off to $250,000 in 2009 and 2010 from the current $125,000 level.
Tax cuts for companies suffering losses: Up to $17 billion over 10 years. Obama would temporarily broaden the “net-operating loss carryback” to five years, up from two years currently. The provision would let companies apply their 2008 and 2009 losses to past and future tax bills so they can get money back on taxes they’ve already paid or would otherwise have to pay. The Senate allows 100% of those losses to be carried back, and the House allows for 90%.
Energy tax break: The Senate proposal includes an $11 billion measure to make it easier for businesses to claim valuable tax credits for investing in energy. The House bill does not include this proposal.