As part of the Senate compromise, renewable-energy tax incentives were dropped from the bill, as was a provision that would have allowed companies such as home builders to get tax refunds from past years when they were profitable.
Two tax breaks retained in the final legislation would allow businesses to write off equipment purchases made this year more quickly and give small firms greater ability to write off their expenses. The legislation also would raise loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration, as the House bill did.
Here’s section 102 of Title I:
SEC. 102. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS.
(a) In General- Subsection (b) of section 179 of the Internal Revenue Code of 1986 (relating to limitations) is amended by adding at the end the following new paragraph:
`(7) INCREASE IN LIMITATIONS FOR 2008- In the case of any taxable year beginning in 2008–
`(A) the dollar limitation under paragraph (1) shall be $250,000,
`(B) the dollar limitation under paragraph (2) shall be $800,000, and
`(C) the amounts described in subparagraphs (A) and (B) shall not be adjusted under paragraph (5).’.
(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
UPDATE (12:45 p.m.): More details/analysis at the TaxProf Blog.
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