The Economic Stimulus Act of 2008 was passed in January 2008 and authorized more than $100 billion in stimulus payments. Also included in this act is increased Section 179 expensing and bonus depreciation.

Those who qualified in 2008 but did not receive a stimulus payment are still eligible to claim the payment.

Section 179

This new change raises the expensing limit from $128,000 up to $250,000 for 2008 only. The limit will drop to $125,000 for 2009 and 2010, indexed for inflation, and $25,000 for 2011 and going forward and is not indexed for inflation.

Expensing ceilings have been raised from $510,000 up to $800,000 although writeoffs can be taken up to $1,050,000.

Bonus Depreciation

Businesses may now depreciate certain qualified property 50% of its adjusted basis. This must be done in the year the property was placed in service but does not apply to inventory or intangibles except software.

Luxury Automobiles

Due to bonus depreciation, the total first year depreciation limit has been raised to $11,060.