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This story appears in the May 2008 issue of Entrepreneur. Subscribe »

When President Bush signed the stimulus package in February, it not only promised cash rebates for tax payers, but also spelled assistance for entrepreneurs. Included in the package: an immediate 50 percent bonus deduction on new equipment that would normally be depreciated over many years, and an increase from $128,000 to $250,000 of the limit on expenses that small businesses can deduct from annual income (with a total cap of $800,000).

These provisions are very valuable to small businesses, says Bill Raabe, a tax professor at Ohio State University. But the real benefit, he believes, will come from the cash rebates to consumers. Says Raabe, "Each business should make sure, by using sales or additional advertising campaigns, that it gets a share of the cash infusion."

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