Rule No. 1: In every new tax law is a new opportunity.

Rule No. 2: Tax laws are never simple.

The new economic stimulus package that President Bush signed into law Saturday is no exception to either rule. It has provisions that can provide significant and immediate benefits to many Maine businesses and, predictably, it contains a great deal of complex rules. In a nutshell, the provisions that are most likely to affect the average business tax return are:

. The amount allowed for depreciation on most new assets put into use after Sept. 10, 2001, increases significantly. Certain types of computer software and some improvements to leased facilities qualify for the new depreciation increase as well.

. An increase in the number of years a business can apply net operating losses (incurred in tax years 2001 and 2002) against prior years’ profits.

. The luxury auto depreciation limit more than doubles for autos placed into service after Sept. 10, 2001.

. An extension of certain temporary tax credits and deductions that expired Dec. 31, 2001, including Work Opportunity Tax Credit and certain energy incentives.

. More than 20 (fairly technical) corrections to the tax legislation passed earlier this year, some of which make substantive changes for tax filers.

What does this mean for the average business? While opportunities created by the new law will vary with each company’s circumstances, the provision most likely to affect businesses in Maine is the change in depreciation. Most five-year assets placed into service after Sept. 10, 2001, qualify for an effective 44 percent depreciation deduction, up from the 20 percent depreciation expense allowable before the stimulus package.

To see how this works, let’s take a look at a mythical Bangor business we’ll call Chick’s Hatchery. In October, Mr. Chick purchased $100,000 of new lighting equipment. On his tax return, he depreciates 30 percent of the expense ($30,000) immediately and an additional 20 percent of the reduced amount ($100,000 – $30,000 = $70,000. 20 percent of $70,000 = $14,000), giving him a total depreciation of $44,000. His total depreciation expense before the new law would have been $20,000. That’s not chicken feed.

There’s more good news, but it comes with a catch. Many of the new law’s provisions are retroactive and could affect your return this year. Here’s the catch: The corporate filing deadline is this Friday, March 15. Many businesses have already filed their 2001 tax returns. With one day left, here’s what you can do to determine whether you should take advantage of the new law for your business:

1. Determine if these changes are likely to affect your return (if you’re unsure, your accountant can help you identify what new provisions may affect your business this year).

2. If you haven’t already filed, request an extension so that you can determine the effect of the new provisions.

3. If you have already filed a return, work with your accountant to see if filing an amended return makes sense.

Lee Chick, C.P.A., is a principal at the accounting and consulting firm of Berry Dunn McNeil & Parker in Bangor. He specializes in tax and retirement plan issues.