As you've no doubt heard, the United States Congress moved quickly to pass the Emergency Economic Stabilization Act of 2008, which the President immediately signed on October 3, 2008. The primary purpose of the Emergency Economic Stabilization Act of 2008 is to address the issue of frozen credit paralyzing the financial markets. But it is also one of the largest tax bills in recent years, containing over 100 tax provisions, almost 300 Internal Revenue Code changes, and over $150 billion in separate tax incentives impacting individual and business taxpayers.
With less fan-fare and media attention, two other bills containing significant tax code modifications were also passed this summer; the Food, Conservation, and Energy Act of 2008 (June) and the Housing Assistance Tax Act of 2008 (July).
Together, these bills include a host of investment incentives targeted at businesses. Most of these are extensions or revisions of existing tax benefits. Most significantly to Sage FAS product users, the bills include:
§ Extension of existing and creation of new energy tax incentives, such as investment credits and bonus depreciation
§ Bonus depreciation for qualified reuse and recycling property
§ Extension and revision of the research tax credit
§ Extension of accelerated depreciation for leasehold and restaurant improvements
§ Introduction of accelerated depreciation for retail improvements
§ Extension of disaster relief measures in various areas throughout the United States
§ New accelerated depreciation for certain farming equipment
The majority of tax breaks in each of these new laws are designed to provide immediate relief in 2008 and 2009. This means that year-end tax planning is more urgent than ever to maximize these new tax breaks.
Sage FAS is right on top of these changes. Sage FAS version 2009.1, incorporating these latest tax breaks and investment incentives, will be available in December of 2008, just in time for your year end tax planning.
