Stimulus Extends Expensing and Bonus Depreciation Through 2009.

Essentially, Section 179 allows businesses to deduct the full purchase price of qualifying equipment, purchased or financed, during 2009. That means if you buy or lease a piece of equipment, you can deduct the FULL PURCHASE PRICE from your gross income.

It works like this. When your business buys certain pieces of equipment, you typically write them off through long-term depreciation. But under Section 179 you write off the entire amount of your purchase in one year!

Summary 

Business Incentive (applies to new or used assets purchased in 2008-2009) - Beneficial for businesses with total asset purchases of less than $800,000. You will be able to expense up to $250,000 of those capital purchases. 

First Year Bonus Depreciation (applies to new assets only purchased in 2008-2009) - Bonus 50-percent depreciation allowed to be taken in the first year. 

Click here for 2009 Economic Stimulus Package details

* Consult with your Tax Advisor for further details and qualifications