The Economic Stimulus Act signed by President Bush in February promotes business investments in 2008 by significantly expanding depreciation and one-time expensing options for qualified capital expenditures. This provides significant incentives for organizations to buy technology platforms and applications. What does this mean for midsize companies and their bottom line?

Those already planning to make a substantial technology purchase will receive a boost to cash flow, according to Matthew Shapiro, a professor of economics at the University of Michigan. But organizations probably won't make many additional investments, he says, because plans are basically in place. "The main effect is not to do additional investment but to get better cash flow results from investments that are already going to be undertaken," Shapiro says. "And that is substantial."

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