By now, you've probably heard plenty about HR 5140, also known as the Recovery Rebates and Economic Stimulus for the American People Act of 2008. But now that it's been signed, what does it mean for small business? According to Small Business Administration administrator Steve Preston, it works in the favor of small-business owners. "This bill is a win for small businesses in three major ways: Tax rebates will stimulate short-term consumer spending, some of which will flow to smaller companies; a 50 percent bonus deduction on new equipment that normally would be depreciated over the long term; and it increases the limit on expenses that small businesses can deduct from annual income," said Preston.
As for the future, Preston says the SBA will urge Congress to work on issues like permitting health insurance pooling and deductibility, opening new markets with Colombia, Peru and South Korea and guaranteeing that taxes on small-biz earnings and investments don't rise.