Remember back in 2005 when the government provided tax incentives for businesses, known as the "write off your SUV" act? The deal applied to the purchase of all business equipment, but the special SUV writeoffs got the headlines. Many jumped into that, although record oil prices must have made some SUV buyers wish the incentives were for a Prius. Now the deal is back, but few people have noticed.

The magic words in accountant-ese are “bonus depreciation allowance” and “qualified section 179 property.” Bottom line, and we're definitely talking the real bottom line, is that you can write off up to 100% of the first $250,000 of capital expenditures if purchased and put into service within the 2008 calendar year. This business information was all overwhelmed by the news stories about the $300 checks mailed to taxpayers.

Chris Carcia, principal and partner at Avidiant Consulting Group, told me, “It's amazing how many people aren't aware of this. A few of our clients are, but the majority have no clue.” Part of the reason people didn't notice is that the “write off your SUV” program from 2005 was discontinued in 2006 and 2007. Now it's back, and not many people realize it.

Chris Griffith, CEO of StarPoint Technologies does realize this, and it was his e-mail blast to customers in the Dallas area that got my attention. Griffith credits his new focus on the Economic Stimulus Act with reviving multiple customer deals.

“The Act applies only to hardware and software, not services,” said Griffith. “A real estate firm is looking at a project worth about $100,000. Probably $80,000 will be hardware and software that qualifies. They'll be able to write off all that $80,000 in 2008 rather than spreading the depreciation over fives years.”

StarPoint has a link on their Web site to the IRS pages explaining how this all works. Using the IRS examples on applying the 50% bonus depreciation, StarPoint explains how to spend $400,000 and write off $304,000 the first year. That's a lot of taxes not paid, meaning more money stays in your pocket.

One of Garcia's consulting customers is about to receive funding to build three organic fish farms. The vendors are primed and ready to deliver the equipment as soon as funding arrives. Between the three farms, the company should save about $300,000, out of between $1.5 million to $3 million total equipment costs.