Economic Stimulus Package — Time to Act: Now

Sample III

MID-RANGE SADDLESTITCHER
(Total 2008 Purchases Are $900,000)
Example Price (Without Tax Cut): $200,000
Partially Phased Out Sec. 179 Small Business Expensing Provision = $150,000 ($100,000 over $800,000 limit)
New 50% Bonus First-year Depreciation = $25,000
Plus Regular Depreciation = $3,500
Total First-Year Depreciation = $178,500 (89% of New Asset)
Tax Savings = $71,400 (Assuming 40% Effective Tax Rate)
New Effective Price With Tax Cut = $128,600 (a 36% Savings)