New Law Boosts Economy Through More Tax Breaks
On March 9, 2002, amid signs the U.S. economy is starting to recover, President Bush signed into law the long-awaited economic stimulus law, now known as the Job Creation and Worker Assistance Act of 2002.
In addition to providing extended unemployment benefits for workers who filed an initial claim for unemployment benefits on or after March 15, 2001, the new law also offers significant tax breaks for businesses, both inside and outside of New York City.
The biggest breaks provide incentives for additional capital investments by giving companies a 30% depreciation bonus for eligible investments made after September 10, 2001 and before September 11, 2004. Eligible property includes computers, office equipment, and certain software, cars, trucks, and leasehold improvements.
The new law also provides more tax-advantageous treatment for net operating loss carrybacks, along with special tax benefits for the depreciation or replacement of property lost or destroyed in the newly-created New York "Liberty Zone," and extension of expiring tax provisions. The tax provisions that would otherwise have expired include the work opportunity tax credit, welfare-to-work tax credit and Archer Medical Savings Accounts (MSAs).
Download the technical explanation of the Job Creation and Worker Assistance Act of 2002.