INDUSTRY NEWS
2008 Economic Stimulus Package
What It Means for Your Laundry Business
As all businesspeople should be aware, President Bush recently signed the Economic Stimulus Package for the American People Act of 2008 into law.
But you might not be aware of what exactly that means for you and your self-service laundry business. Cutting through the complex, specialized language the clutters most Congressional bills, here's an outline of the two key provisions that laundry owners should be fully knowledgeable of:
- The economic stimulus package doubles the current small-business expensing limit from $125,000 to $250,000. This provides small-business owners with an immediate deduction for the entire cost of certain investments made in their business, such as purchasing new equipment. This applies only to small-business owners who invest less than $800,000 in their business this year.
- This package also provides for a 50% bonus depreciation for certain investments in business. This means that a business can take an immediate deduction of 50 percent of the investment, rather than deducting the value over a number of years. Unlike expensing, the bonus depreciation deduction would apply to investments that exceed the $800,000 limit.
The bottom line is that both of these provisions have the potential to put money back in the hands of laundry owners so they can grow their businesses this year.
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