9 Things to Consider About the Obama Stimulus Plan

We know that many of our clients need a stimulus shot of cash-flow, and Congress may have just given you that shot. Read on, then call, click or email us to get started.

We have noted a number of tax savings opportunities for large and small businesses scattered about the new Economic Stimulus package. Taking advantage of them as early as possible in 2009 may be the difference between your company merely surviving the slowdown or having the cash to thrive in this time.

Set forth below are the some of the opportunities we see out there for larger businesses. We will keep the descriptions brief so you can get through them more quickly. Just understand that you have a standing invitation to contact us on any of these. Working together we can all get through this slowdown and come out stronger on the other side.

1. You can now grab an additional year of bonus depreciation.
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2. This is a big one. There is an opportunity for a full 5-year deferral for 2009 and 4-year deferral for 2010 for recognition of certain cancellation-of-debt (COD) income for qualifying reacquisition debt.
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3. There is a 1-year extension to accelerate alternative minimum tax (AMT) and research credits in lieu of bonus depreciation
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4. The limit has been increased for New Markets Tax Credits to $5 billion and includes qualified community development entities that were denied or granted only limited benefits in 2008. This area of the tax law is changing, so it is worth taking a look at how your eligibility is affected.
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5. Your company can now obtain a cash grant for your 2009 low-income housing tax credit allocation.
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6. More and more companies hiring veterans are qualifying for tax credits. This year, your piece of the Work Opportunity Tax Credit could come when your company hires "disconnected youth and recently discharged unemployed veterans."
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And Now Some Small-business incentives

7. Here is the big one. You can extend your NOL carry back period for losses arising in 2008 from the current law 2 year limit to 3, 4 or 5 years if you have gross receipts of $15 million or less. Don't let this one slip by. An unusual provision allows you to pick the year to which you will carry it back, so planning is critical here.
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8. Here is another 5-digit tax savings opportunity. In 2009 the 179 expensing limit of $250,000 has been extended.
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9. And last but not least, another 5-digit tax savings opportunity. If the last few years have been good for you income-wise, there has been a reduction in the recognition period for S corporation built-in gains from 10 to 7 years. This one is tricky so get some help on it from Talley & Company.
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