¨ Enhanced Small Business Expensing under Section 179. The new law doubles the amount small businesses can immediately write off their taxes for qualified expenditures in 2008 from $128,000 to $250,000 for purchases of new equipment of up to $800,000 (increased from $500,000). However, certain SUVs that are rated at 14,000 pounds gross vehicle weight or less are still limited to the $25,000 Section 179 limitation.
¨ Accelerated Bonus Depreciation. The new law provides for immediate tax relief for businesses to invest in new machinery and equipment, including vehicles, by accelerating depreciation schedules, through an additional 50 percent bonus depreciation of new qualifying property purchased in 2008.
¨ Direct Consumer Stimulus provides one-time rebates of up to $600 for individual taxpayers earning $75,000 or less, or $1,200 for couples earning $150,000 or less, with $300 for each child. Additionally, retirees on Social Security, low-income workers or disabled veterans would receive $300 checks. These rebates could be in the mail as early as May.
NADA and NJ CAR will continue to track any economic developments that might help the retail automotive industry.