"Congress passed a really good piece of legislation, and they did so in a very expeditious manner. The bill I'm signing today is large enough to have an impact -- amounting to more than $152 billion this year, or about 1 percent of GDP. The bill provides temporary tax incentives for businesses to make investments in their companies so that we create new jobs this year. The bill provides individual tax relief in the form of tax rebates. These rebates will amount to as much as $600 for individuals and $1,200 for married couples, with additional rebates for families with children. "
President Bush Signs H.R. 5140, the Economic Stimulus Act of 2008

The Economic Stimulus Act of 2008 provides a significant tax incentive for businesses to purchase automobiles this year. Specifically, the legislation’s “bonus” depreciation provision allows taxpayers to claim significantly larger first-year deductions for 2008 purchases of passenger vehicles, trucks and SUV’s. The rules are complex and any business owner should consult with his/her tax advisor prior to making a decision.

The legislation allows businesses to claim an additional 50% first-year deduction for purchases of qualifying property in 2008. Automobiles of all types are generally treated as qualifying property. Vehicles not subject to the “luxury” auto deduction limits (generally, vehicles with GVWR over 6,000 lbs.) are eligible for the full 50% bonus depreciation benefit.

For vehicles subject to the “luxury” auto limits (vehicles with GVWR up to 6,000 lbs.), the legislation also provides a significant incentive for purchases in 2008. The maximum first-year deduction is increased from $3,060 to $11,060.

We encourage our business customers contact their tax advisors and take advantage of this federal stimulus measure.

This information should not be construed as the rendering of tax advice by Swift Superstore.