Learn more about the economic stimulus package

On February 13, Congress's economic stimulus package was signed into law. While the rebate checks for individuals get most of the headlines, the bill also contains some valuable benefits for small businesses.

The most significant is an increase in depreciation for several types of major purchases. Small businesses can instantly depreciate 50% of the cost of assets purchased in 2008, providing a serious tax advantage on capital expenses. This bonus depreciation can be applied to any physical asset with a normal depreciation period of 20 years or fewer, computer software, or even improvements to leased property.

The other major change is an increase in allowed expenses – up to $250,000 – that can be deducted from income. This change means some smaller businesses can write off many typical purchases as expenses, instead of depreciating them, and even includes leased equipment.

The two-year, $168 billion package is designed to deliver "a booster shot" to the slowing American economy. Learn more about the stimulus package and its benefits for business:

• With Stimulus Package, the Big Winner Could Be Small Business
  The New York Times
• Stimulus plan could be big win for small firms
  WSLS
• Beyond the stimulus: Lobbying for biz issues
  CNN Money

Of course, every business' tax situation is unique. Before making any decisions based on this or any other advice, you should consult with your tax professional to make sure these advantages apply to you.