Those checks that are coming in May aren’t the only thing that small business owners have to look forward to.

The recently enacted economic stimulus package contains two specific tax breaks that small businesses can take advantage of, particularly if they use the Section 179 deduction or depreciate the cost of their office equipment:

The Section 179 deduction, which allows small businesses to deduct upfront rather than depreciate over time the cost of certain kinds of equipment, has nearly doubled for 2008, rising to $250,000 from a previously planned $128,000. The bonus depreciation provision allows businesses of any size to depreciate 50 percent of the cost of equipment, with the balance to be depreciated according to IRS rules.

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 It is possible for a company to take advantage of both provisions, which could mean a huge tax savings for 2008.

There are limits on how much you can spend on equipment, what kind of equipment you can deduct, and even how you purchase and put equipment into service. One other large point: only companies operating at a profit can take advantage of the Section 179 deduction.

LoHud.com has a lot more details about these two small business deduction areas.