New guidance on Stimulus's Act increased expensing and bonus deprecation A new revenue procedure provides guidance on the 2008 Stimulus Act's enhanced expensing under Code Sec. 179, and 50% bonus first year depreciation for most types of depreciable personal property as well as qualifying software. The guidance explains how the new rules interact with GO Zone and Kansas disaster area incentives. It also provides rules for making expensing elections on amended returns. Enhanced expensing. Under the Stimulus Act, a qualifying business can expense up to $250,000 of Code Sec. 179 property purchased by the taxpayer in a tax year beginning in 2008. That's a significant boost from the $128,000 expensing limit that otherwise would have applied. The $250,000 amount is reduced if the cost of all Code Sec. 179 property placed in service by the taxpayer during the tax year exceeds $800,000 (a big jump from the $510,000 ceiling that otherwise would have applied). The Stimulus Act does not alter the $25,000 expensing limit on heavy sport utility vehicles used for business. 50% bonus depreciation. Under the Stimulus Act, businesses may claim a bonus depreciation allowance equal to 50% of the adjusted basis of qualifying property during the year the property is placed in service. In general, the property must be new, bought after Dec. 31, 2007 and before Jan. 1, 2009, and must be placed in service after Dec. 31, 2007, but generally before Jan. 1, 2009.