Economic Stimulus – The economic stimulus bill recently passed by the US Congress and signed by President Bush includes a provision that should encourage many businesses to consider investing in their business operations. One of the easiest and fastest ways to do this is with new enterprise software.
The Economic Stimulus Act of 2008 provides a “bonus depreciation” allowance for certain property acquired during 2008, including computer software.
Traditionally, a business must recover the cost of property over a predetermined period of years for tax purposes. The new law will allow a trade or business to depreciate an additional 50 percent of the cost of an eligible asset acquired and placed into service in 2008 – in that same tax year.
Customers of Exerve can take advantage of this law if they purchase and place into service our products during 2008. The financial benefits will vary depending on the cost of the product purchased, but the law does not contain a cap or floor on the amount that can be spent on such property.
Because this provision is for 2008 only, software purchases may be especially attractive to many IT departments. Most organizations cannot accelerate the timetable for purchasing and installing capital equipment as easily as they can accelerate the purchase of software.
If you are interested, you should contact your CPA to assess the potential benefits of investing in igniting your business success with Exerve’s help in 2008.