There is still time for entrepreneurs and small businesses to get their share of the federal economic stimulus money. The government’s stimulus measures allow firms that incurred net operating losses in 2008 to carry them back five years instead of the standard two years. This allows businesses to apply those losses against taxes paid in the past and obtain refunds. Companies that got extensions of the filing deadlines can still take advantage of this tax break. You can find interviews and updates on this tax provision of the stimulus at http://www.sbtv.com/IRS. Eligible calendar year corporations have until September 15, 2009 and eligible individuals have until October 15, 2009 to choose the expanded carry-back option.
Another stimulus benefit for small business is an expanded Section 179 deduction, which allows small enterprises to deduct up-front rather than depreciate the cost of equipment such as computers, furniture, manufacturing machines and vehicles, up to $250,000. You will find much more detailed information at http://www.irs.gov/businesses/index.html
Another part of the federal stimulus effort is an online training course to increase small business participation in federal contracting. The U.S. Small Business Administration is offering the free instruction after small business contracting fell short again. The free course, “Recovery Act Opportunities: How to Win Federal Contracts,” is available at www.sba.gov/fedcontractingtraining.
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