Stimulus Law Contains Community Pharmacy Provisions

Stimulus Law Contains Community Pharmacy Provisions

The American Recovery and Reinvestment Act of 2009-Public Law 111-5, the $787 billion stimulus bill enacted Feb. 17-contains a number of provisions that will have a significant impact on independent community pharmacy in addition to the ones that affect all citizens and taxpayers.

Now and in the coming weeks, NCPA will be drilling down into the law's fine print, analyzing any proposed regulations needed to implement various sections, and combing the FY '10 budget released Feb. 26 for potential benefits and landmines. NCPA will roll out this valuable information in a number of ways, but only to NCPA members.

"If you know someone who isn't a member, urge them to join NCPA now," said Bruce T. Roberts, RPh, NCPA executive vice president and CEO. "Our Web site contains a wealth of information on legislation and regulation freely available to anyone, but the members-only section is much more detailed and is going to grow even more robust. I personally believe that the NCPA Digest, sponsored by Cardinal Health, and the searchable archive of America's Pharmacist articles back to 2005 alone are worth the price of membership, and they are only a couple of our many member-only benefits."

Here are some of the general changes in tax law affecting small businesses contained in the new stimulus law:

Increases temporarily for 2009 the Section 179 expense deduction from $128,000 to $250,000 and offers a 50% depreciation allowing for half the cost of capital expense.

Expands from two years to five years the ability of firms to carry back operating losses for companies with $15 million or less in gross operating revenues (Section 172 of the IRS Code).

Modifies work opportunity tax credit (Section 51 of the IRS Code).

Temporarily reduces the recognition period for S corporation built-in gains tax (Section 1374 of the IRS Code).


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