U.S. HOUSE OF REPRESENTATIVES PASSES ECONOMIC STIMULUS ACT OF 2008
In a move that won praise, the U.S. House of Representatives today passed a more than $150 billion economic-stimulus package that will be considered by the Senate Finance Committee tomorrow. One of the provisions of the Economic Stimulus Act of 2008 would revise subsection (k) of Section 168 of the Internal Revenue Code and create a special allowance for certain property acquired during 2008. In general, the Act would allow for bonus depreciation equal to 50 percent of the adjusted basis of qualified property for property placed-in-service on or after January 1, 2008 and before January 1, 2009, as well as for costs incurred during 2008 for property placed-in-service before January 1, 2010. Qualified property includes personal property and land improvements with a recovery period of at least 10 years, but fewer than 20 years as well as computer software and certain other property. The property must be new property. To qualify for the bonus depreciation, the taxpayer must acquire the property after December 31, 2007 and cannot have entered into a written binding contract to acquire the property prior to January 1, 2008 or after January 1, 2009. Henry M. Paulson, Jr., secretary of the U.S. Department of the Treasury, today commended House lawmakers for their quick bipartisan action and said he looked forward to similar efforts from Senate lawmakers.