BUSINESS NEWSLETTER
March 2009
STIMULUS PACKAGE INCLUDES HELP FOR SMALL BUSINESS OWNERS
The 787 billion dollar economic stimulus package, while being criticized by some for not doing enough to aid small businesses, does contain some benefits. The stimulus bill includes 730 million dollars in appropriations to improve Small Business Administration programs and create new initiatives to address the current economic crisis.
Additionally, the bill contains 375 million dollars which is earmarked to allow for temporary waivers or reductions in the fees that the Small Business Administration currently charges to lenders and borrowers in its Flagship 7(A) and 504 Loan programs. A spokesman noted that the bill requires the SBA to give borrowers and smaller banks priority in receiving fee relief.
Other incentives in the bill include a provision that would increase loan guarantees for Small Business Administration lenders, one that offers a tax credit for businesses that hire disadvantaged workers like veterans and disconnected youth, and a provision which allows some businesses to deduct up to $250,000 for capital investments.
Another provision gives companies a 50% bonus deduction on capital investments made in 2009 that, otherwise, would have had to be deducted over many years.
Companies will also be able to use losses from 2008 to offset profits in earlier years.
WHITE HOUSE SAYS STIMULUS WILL BRING 20,000 JOBS TO WESTERN NEW YORK.
Numbers released by the White House, estimate that the impact of the American Recovery and Reinvestment Act will create 20,000 jobs in Western New York over the next two years, while creating or saving 3,500,000 jobs nationwide. Ninety percent of these jobs, says the White House, will be in the private sector.
The Council of Economic Advisors estimates that Western New York will add more than 7,200 jobs in the 26th District (Rep. Chris Lee, Republican), 6,800 jobs in the 27th District (Rep. Brian Higgins, Democrat), and 6,700 jobs in the 28th District (Rep. Louise Slaughter, Democrat).
A recent poll completed by CNR Research Institute claims that three-quarters of New Yorkers say they support the nearly 800 billion dollar stimulus package.
STIMULUS ACT STIMULATES OUR ENVIRONMENT.
A provision of President Barack Obama's stimulus package offers grants for the installation of new solar panels. It is hoped that the Economic Stimulus Act will lead to more widespread use of the technology by businesses.
It is expected that the United States solar energy industry will expand because of the Stimulus Act. President Obama stated, at his State of the Nation Address given on February 24, 2009, "we invented solar technology, but we have fallen behind countries like Japan and Germany in producing it."
The federal government has offered a 30% tax credit for property owners who install solar power. Grant money from the stimulus package is meant to replace the tax credit.
It is hoped that the package will motivate plumbers, roofers and general contractors to add solar installations to their businesses.
STIMULUS PACKAGE INCLUDES TAX CREDITS FOR FAMILIES AND INDIVIDUALS.
The economic stimulus package, signed into law on Tuesday, February 17, 2009 by President Obama includes tax credits for families and individuals. Some families and individuals can look forward to the following:
· A $400.00 tax credit for working individuals and $800.00 tax credit for working families in 2009 and 2010.
· A 10% tax credit of up to $8,000.00 for first time primary home buyers who purchase a home in 2009.
· Up to a 30% tax credit on qualified energy efficient home and building improvements through 2010. This covers purchases such as energy efficient windows and doors, new furnaces and insulation.
· A tax credit of up to $2,500.00 for higher education tuition costs and related expenses.
By: Tara S. Evans