The House of Representatives last week unveiled a $825 billion, two-year stimulus package that includes $275 billion in tax cuts for individuals and businesses and $500 billion in increased government spending that President Obama says will create 4 million jobs and jumpstart the economy. What's in it for business? Below are some of the key proposals:

• Extend the net operating loss carryback period from two years to five years
• Allow small businesses to deduct up to $250,000 of certain expenses — the 2008 stimulus bill offered that amount and this proposed bill would extend it
• Extend provisions enacted in2008 that allow businesses of all sizes to depreciate 50% of investments in new equipment immediately,
• Delay for one year the 3% withholding tax on all government payments scheduled to go into effect in 2011,
• "Making Work Pay" tax credit worth up to $500 for single workers and $1,000 for married couples. That credit is widely expected to be paid through a reduction in payroll taxes, so workers would see a slight increase in their paychecks.
   

In addition, states and local governments would receive $120 billion to shore up budget shortfalls, and $90 billion would go towards transportation and water infrastructure projects.

The House is expected to hold hearings on the bill this week, with floor action occurring as early as next week.

Learn more.