In response to an injured economy, Congress last year passed the American Recovery and Reinvestment Act. It offers several tax-related helps.

One section allows small companies to expense up to $250,000 worth of their equipment purchases for 2009. If the company does not fully qualify for expensing, the purchase money can be depreciated over several years. The new law allows for a 50-percent first-year "bonus" depreciation, plus the normal one.

Another break: an extension of the carryback time to use a net operating loss to recover income tax paid previously. This year, the company can use a net operating loss in 2008 or 2009 to recover taxes paid in the previous five years instead of the usual two. Larger firms, too, can carry back losses for five years, but must choose only one year's losses. And losses carried back to the fifth year can offset only 50 percent of losses.

There are some limitations. It's smart to discuss your tax opportunities with us at G M Hietpas CPA, LLC.