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.