Companies currently are allowed to use Section 179 expensing allowance which allows for $25,000 in capital purchases to be directly expensed. The stimulus package last year allowed an additional 30% on new equipment to be expensed. Not sure how long this is good for. May have been a one year deal. Bush wants the Section 179 figure to go from the $25,000 to $75,000.
So, if a business spends $100,000 on equipment, they can expense $75,000 of it immediately rather than setting it up as a depreciable item and taking annual depreciation expense for 5 or 7 years.