Economic Stimulus: What is the Economic Stimulus Act of 2008?
The Economic Stimulus Act of 2008 has three main parts: an individual tax rebate that the Internal Revenue Service will send out starting in mid-2008 and two business provisions that encourage investment during 2008 by increasing limits on expensing investment costs and accelerating depreciation of qualifying investments. The congressional Joint Committee on Taxation estimates that the three provisions together will reduce federal revenue by $152 billion in fiscal 2008 and by another $16 billion in fiscal 2009. In subsequent years, revenue will actually rise as firms will claim less depreciation for investments made in 2008 than they otherwise would have. As a result, revenue losses from 2008 through 2018 will total $125 billion.