Following weeks of debate and negotiations in Washington, President Obama has signed a $787 billion economic stimulus plan that the U.S. Chamber says is urgently needed to improve the economy.

Even with monetary policy pushing interest rates down to zero percent and increasing balance sheets to more $1 trillion, the economy remains mired in its worst nose dive in 35 years, prompting the need for government spending and tax incentives to spur growth, says Bruce Josten, Chamber executive vice president of Government Affairs. "We need to boost consumer demand, increase investment, and get the private sector working. This bill, though not perfect, is big enough to significantly improve the economy."

By working with Congress, the Chamber was, in several instances, able to ensure the inclusion of business and taxpayer benefits, including

• An extended net operating loss carryback period of five years for small businesses with annual receipts of $15 million or less.
• Bonus depreciation that allows businesses of all sizes to immediately depreciate 50% of investments of certain business assets.
• Increased small business expensing provisions that allow small businesses to immediately deduct up to $250,000 in equipment purchases rather than depreciate the cost over time.
• A one-year delay, to 2012, of the 3% withholding tax on all government payments originally scheduled to go into effect in 2011.
• Significant reductions in borrower and lender fees for the SBA's 7(a) and 504 loan programs and increased loan guarantee caps.
• Deferred payment of taxes on certain income when debt is repurchased at less than face value.
   

Individual taxpayers also get breaks. The alternative minimum tax (AMT) was temporarily fixed to prevent 26 million additional taxpayers from having to pay the levy in 2009, new car buyers can deduct the sales tax on a new purchase, and the tax credit for first time homebuyers was increased to $8,000 and does not have to be repaid. In addition, for 2009 and 2010 there is a $400 payroll tax credit for individuals and an $800 credit for couples filing jointly.