Tax legislative update: What do you need to know about the federal stimulus bill? at Grant Thornton
On Feb. 17, President Obama signed the American Recovery and Reinvestment Tax Act of 2009 into law. It includes over $300 billion in tax incentives and sizable packages of changes for both individuals and businesses. In a recent Grant Thornton Thinking webcast, our thought leaders discussed the provisions of the stimulus bill in greater detail.
The bill includes individual taxpayer relief from the alternative minimum tax and incentives for education, new car purchases and first-time home buyers. In addition, a “Making Work Pay” credit was created, creating tax credits of $400 for individuals and $800 for married couples filing jointly.
For businesses, a five-year carryback period for net operating losses (NOLs) was created, and more businesses will be able to benefit from an extension of bonus depreciation, enhancements to existing energy tax incentives and greatly loosened tax-exempt bond rules.
Perhaps most significantly, the recognition of cancellation of debt income incurred in 2009 and 2010 can be deferred under the legislation until the five years beginning in 2014.
Want to learn more? Read Grant Thornton’s Tax Legislative Update about this important issue or visit Grant Thornton’s Web site today to listen to a replay of this important webcast!
