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Service centers may find tax breaks 'stimulating'.

Article Excerpt
THE AMERICAN RECOVERY and Reinvestment Act of 2009, a nearly $800 billion stimulus package, includes almost $300 billion in potential tax savings. Every business, including metals producers and distributors, can share in over $75 billion in tax benefits for 2009 and 2010.

The Recovery Act extends "bonus" depreciation, increases the Section 179 first-year write-off for newly acquired equipment and adds two new groups to those whose first-year wages are reduced thanks to the work-opportunity tax credit. The business-related tax breaks also include tax-deferred debt forgiveness income. In addition, the measure includes a five-year, rather than a two-year, carry-back of net operating losses that may return taxes paid in earlier years to the coffers of many service centers and other businesses.

Cash infusions from losses

The Net Operating Loss carry-back provision provides the greatest potential savings of all the business tax provisions in the new stimulus package. Under current law, NOLs are carried back to the two taxable years before the year that the loss arises. A NOL may also be carried forward for the next 20 taxable years, after the year of loss.

The Recovery Act gives metal center operators the choice to carry NOLs from the 2008...

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