Obama to Call for Full Tax Credit for Business Purchases in 2011


President Barack Obama will call for new rules allowing business to deduct from their taxes through 2011 the full value of the purchase of equipment.

The planned deductions are intended to encourage companies to invest in equipment such as computers and utility generators, stimulating the economy The New York Times reported. It would cost about $200 billion in revenue, although in the long run that cost would shrink to $30 billion.

Obama will announce the plan in a speech on Wednesday in Cleveland, along with measures including $50 billion for infrastructure investments. The speech will also include a provision to expand and make permanent a tax credit for company research and development.