WASHINGTON (Jan. 30, 2008) — By a 385-35 vote, the U.S. House of Representatives has passed a $146 billion economic stimulus bill that among other things would offer businesses a number of tax breaks.
The House package would allow businesses to expense up to 50 percent of capital goods they put into service in 2008 and nearly double the maximum amount that businesses can write off under Section 179 of the Tax Code, to $250,000 from $128,000.
The Senate Finance Committee is supposed to mark up today its own $161 billion stimulus package, which has the same Section 179 write-off provisions as the House bill but would allow capital goods expensing of 25 percent in both 2008 and 2009.
The Senate bill also would extend the net operating loss carryback period from two years to five years for tax years 2006 and 2007.
Treasury Secretary Henry Paulson is urging the House and Senate to resolve their differences and pass a unified bill quickly. Paulson estimated that the passage of a stimulus bill could create 500,000 jobs in the U.S. in 2008.