Economic Stimulus Act of 2008: Federal Depreciation − First Year
   
2008 has become a great year to invest in your business. The Economic Stimulus Act of 2008 has significantly increased your company’s purchasing power when it comes to buying new equipment. The deduction limits have almost doubled for 2008, and there is a new one-time bonus 50% depreciation once that limit is reached. Use this Depreciation Allowance Calculator to see how much you can save on new equipment purchases in 2008.
Cost of Qualifying Assets Acquired
Section 179 Expense Election * 90,000.00
Bonus Depreciation − 50% after deducting Section 179 0.00
MACRS Depreciation − 7 Years - Mid-Year Convention 0.00
Total Depreciation First Year 90,000.00
First Year Cash Savings on your Equipment Purchase 31,500.00
(assuming a 35% tax bracket)  
Lowered Cost of Equipment after Tax Savings 58,500.00
And here's what happens if you finance your purchase:  
Interest Rate
# of Payments
Monthly Payment 1,792.21
Number of Payments Your Tax Savings will Cover 17
(it's like getting to use the equipment for free for this many months)  
* Up to 250,000. Reduced $1 for each dollar over $800,000
 
WARNING: This calculator proposes a potential tax scenario based on typical assumptions. It is only for example purposes. Some of these assumptions may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Be smart; consult your tax advisor to determine the tax ramifications of acquiring equipment for your business.