President Bush on Wednesday signed legislation aimed at spurring economic growth with more than $160 billion in personal and business tax incentives.
Among other provisions, the package increases small-business expensing limits from $125,000 to $250,000, and includes a 50 percent bonus depreciation deduction on business equipment.
Dan Danner, executive vice president of the National Federation of Independent Business, called the plan an important victory for small business.
"Now that the stimulus package has been signed into law, small-business owners can make plans to invest in their businesses knowing that they qualify for these tax breaks," Danner said in a statement.
Steven Preston, head of the Small Business Administration, said the package will give small businesses a "much-needed boost which will enable them to expand their companies and create new jobs."