Main Street Recovery Act
Senator Dorgan believes that in this economic crisis, the focus of any stimulus legislation must be on creating jobs. He introduced legislation, called the Main Street Recovery Act, to encourage businesses to create jobs and invest in the economy through a series of targeted tax incentives. With the nation���s economy faltering, his legislation will encourage businesses to make needed capital investments - from purchasing machinery or upgrading equipment to making building improvements - which in turn will create jobs for a multitude of industries, instead of eliminating them.
Dorgan���s legislation includes the following tax incentives to stimulate business investment:
(1) A temporary 15-percent investment tax credit. This 15 percent tax credit will last through June 30, 2010, encouraging manufacturers and producers to purchase new equipment and machinery now, when it will most benefit the economy. Investment tax credits have been proven to work and will help generate growth and jobs in the nation���s manufacturing and construction sectors.
(2) Enhanced 50-percent bonus depreciation. To promote business investment now, when the economy needs it most, Dorgan���s legislation will extend the expiring 50-percent bonus depreciation for eligible assets placed in service over the next 18 months. This will help businesses make capital investments during the economic downturn by allowing them to write off a larger share of their eligible business investments more quickly from their federal income taxes.
(3) Increased $250,000 small business expensing. To help small businesses buy the equipment and machinery they need to weather this economic storm and begin to grow again, the bill extends a provision that allows businesses to immediately deduct up to $250,000 of their equipment and machinery purchases from their taxable income. This important provision has already expired for many taxpayers, but Senator Dorgan���s bill will extend it for 18 months, stimulating job-creating investment in the small businesses that help power our economy.
In addition, there are many business owners that do not require new equipment or machinery but instead want to build a new business ��� maybe a restaurant, perhaps a retail shop, or make interior and other improvements to such properties. Expanding the bonus depreciation and small business expensing provisions outlined above to cover investments in commercial real property will help provide business owners with the financial assistance they need to build that building or make long-overdue improvements.
