Economic Stimulus Package Includes Incentive for Newspaper Equipment Purchases

After Congress passed economic stimulus legislation including rebates and business incentives, President Bush signed the legislation on Feb. 13, 2008. The final bill included a bonus depreciation provision, for which NAA lobbied, allowing businesses to expense an additional 50 percent of the value of new equipment having a depreciable life of 20 years or less that is placed in service during 2008. The remainder of the cost would be depreciated over the life of the equipment. This is a significant benefit for any newspaper considering a large purchase of equipment since most printing and computer equipment falls within a seven or five year depreciation schedule. This will allow newspapers who purchase equipment to write off an additional 50 percent of the cost in 2008. To be eligible to claim the bonus depreciation, there cannot be a binding written contract before Jan. 1, 2008 to acquire the property.

First Published:
February 22, 2008