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What It Is
The recently approved Federal Stimulus Package includes several key incentives for businesses looking to expand and complete new equipment purchases in 2008.

The $168 billion economic stimulus bill signed into law this February provides substantial tax advantages for businesses that acquire capital goods and put them into service in 2008.

This opportunity to accelerate depreciation should encourage customers to purchase equipment to be placed in service during 2008. Equipment purchased after 2008 is not eligible.

These tax incentives mean there's never been a better time to invest in your IT infrastructure than right now.

How It Works
Businesses whose total 2008 capital expenditures from all vendors are $800,000 or less, will be permitted to immediately deduct up to $250,000 of purchases in 2008 and depreciate the balance over the life of the asset (five years for computers, three years for eligible software.)

The $250,000 deduction is reduced as the amount of qualifying purchases exceeds $800,000 and is totally eliminated at $1.05 million. Under existing law the maximum current deduction is $128,000 with reductions beginning at $510,000. This provision could double the benefits of an existing tax write-off for businesses - lifting it from $128,000 to 250,000. It also lifts the cap on businesses eligible for the deduction, expanding it to businesses making up to $800,000 (up from the current $510,000 limit).

Another provision allows businesses investing in new plants and equipment to speed up bonus depreciation provisions, so that firms can write off 50 percent for qualifying investments in 2008.

CDW does not offer or provide tax or accounting advice. Please consult your financial advisor and/or tax and accounting professional(s) prior to purchase.