Tech Companies To Get Some Help From Stimulus Plan - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance
News
2/8/2008
02:35 PM
50%
50%

Tech Companies To Get Some Help From Stimulus Plan

CompTIA estimates the bill will give laborers newer IT tools with which to be more productive and average Americans cash to purchase IT.

The tech industry hasn't been spared during recent economic turbulence, but industry insiders hope that the economic stimulus package passed by the Senate on Thursday night can help.

The anticipated $161 billion stimulus bill has a few provisions that could boost technology purchases and keep more money in the pockets of technology companies. The Computing Technology Industry Association (CompTIA) was quick to point them out and praise lawmakers for taking steps to protect technology companies.

"With this infusion into the U.S. economy, Congress has taken targeted yet aggressive steps to stem the tide of the present economic downturn," Roger Cochetti, group director of U.S. public policy for CompTIA, said in an announcement praising the federal government.

Cochetti pointed out that the stimulus package increases deductions for small-business equipment purchases, accelerates depreciation of capital assets, and, of course, gives consumers more money to spend. The plan would give taxpayers, seniors, disabled veterans, and those earning too little to pay taxes payments ranging from $300 to $600. Couples would receive $1,200, and the government would award an extra $300 for each child under 17, under the plan, which President George W. Bush said he will sign next week.

While the money won't all be spent on technology, Cochetti sees hope in the payments.

"More specifically, the package will incentivize the purchase of IT," he said. "This will create powerful cascading benefits -- small-to-large businesses will more rapidly bring new IT online, boosting competitiveness; laborers will have newer IT tools with which to be more productive; and average Americans will be more likely to purchase IT, decreasing the digital divide."

Technology stocks performed well Friday, but several large technology companies have recently struggled with profit concerns.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Slideshows
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
News
What Comes Next for the COVID-19 Computing Consortium
Joao-Pierre S. Ruth, Senior Writer,  11/24/2020
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll