OBAMA SURPRISES WITH BUSINESS TAX BREAKS

In a surprising announcement, President-elect Obama has indicated that his upcoming stimulus package will include tax breaks for business. While lacking in details, the following breaks are expected to be included:

• an extension of the net operating loss carryback period to five years for 2008/2009 losses;
• a two-year extension of bonus first year depreciation;
• enhanced expensing for business property; and
• tax incentives for businesses that hire new workers.

Such relief will be welcomed, especially in light of the current business environment.