The Economic Stimulus Act of 2008, best known for its recently-distributed economic stimulus checks for individuals, also contains several incentives for businesses. One incentive within the act allows for the deduction of 50 percent of the depreciation of new property used for the business, said Paul Senger, a shareholder and CPA with Brookfield-based Winter, Kloman, Moter & Repp S.C. The deduction is for property used for the business, including machinery, computer networks, telephone systems and vehicles of more than six tons.

Previous tax law allowed for the depreciation of the asset to be written off over a five year period, Senger said. "Normally, you have to take depreciations over time," he said. "By having the 50 percent allowance you can take the expense of half of the item in the first year, plus you can begin depreciating the remaining half in the first year."

For example, if a business bought a $40,000 machine, it could write off the first $20,000 the first year. The business could also write off another $4,000 during the first year, because the remaining 50 percent of the asset's depreciation could be written off over five years.

The Economic Stimulus Act also expanded the existing Section 179 Property code, which allows a business to treat some purchases as expenses, therefore deducting them in the first year of service. Previously, companies could deduct up to $128,000 under Section 179, Senger said. That limit has been raised to $250,000 under the Economic Stimulus Act, he said.

"You can write off the first $250,000 in asset purchases in 2008 (under the section)," Senger said. "You would want to use the (Section) 179 first because there is a cap on asset purchases. With anything above that you can use the 50 percent depreciation."

Senger and his associates at Winter, Kloman, Moter & Repp have started to tell some customers about the deductions they can take advantage of with the Economic Stimulus Act in recent months, with mixed reaction.

"When we're out meeting with clients on a monthly or quarterly basis we are bringing it up before them," he said. "Some are saying that the economy is in the tank and some are saying they were planning to expand so this is great."

Wauwatosa Savings Bank has officially changed its name to WaterStone Bank SSB this week. The bank has experienced significant growth in recent years, both in new branch offices and in additional product lines, according to Doug Gordon, president and chief executive officer. The bank has offices in Wauwatosa, Franklin/Hales Corners, Germantown/Menomonee Falls, Oak Creek, Oconomowoc, Pewaukee, Waukesha and West Allis. "A name change is necessary to better reflect what we are now, and what we plan to be in the future," Gordon said. "As we continue to expand geographically to other communities, 'Wauwatosa' does not clearly define our intentions to be the premier community  bank in all the communities we serve." In February, Wauwatosa Savings invited its customers and communities to help choose the bank's new name by completing an opinion ballot.

J.M. Brennan acquires H.V.A.C. of Wisconsin
Milwaukee-based J.M. Brennan, a mechanical contractor, announced that it recently purchased Racine-based H.V.A.C. of Wisconsin Inc., which specializes in HVAC installation, maintenance and service. As a result of the acquisition, J.M. Brennan said it will be able to offer "local, high-quality services to existing and new customers in the Racine, Kenosha and Walworth areas." All current H.V.A.C. of Wisconsin employees will remain with the company. In addition, J.M. Brennan announced that it plans to hire additional employees and open an office in Sturtevant. J.M. Brennan also can now offer H.V.A.C. of Wisconsin customers an expanded line of services, including plumbing, controls, sheet metal and piping, as well as assistance in construction projects.

"H.V.A.C. of Wisconsin has an excellent reputation. We are excited to expand our services and customer base through this merger," said John Brennan, president of J.M. Brennan. "With our combined expertise, we can provide a wider base of customers with quality mechanical and HVAC services."

"Our customers will benefit greatly from this partnership," said Gene Townsend, former owner of H.V.A.C. of Wisconsin and current J.M. Brennan south region service manager. "We will be able to offer our customers an expanded variety of mechanical services to fit their unique needs. They will continue to receive the first-rate service they are used to from familiar faces, now enriched with the additional services J.M. Brennan provides."

The Manitowoc Company increases offer for British firm
Manitowoc-based The Manitowoc Company Inc. has increased its offer for United Kingdom-based Enodis to $2.4 billion, after an earlier bid was topped by Illinois Tool Works' $2.3 billion offer. The deal would include the assumption of Enodis' net debt (approximately $245 million as of March 29, 2008).

Enodis is one of the leading global food and beverage equipment manufacturers with approximately 6,800 employees and 30 factories in 9 countries. The company is based in London and operationally headquartered in Tampa, Fla.

"We reconsidered our options carefully and reaffirmed that there is significant strategic merit in bringing these two strong organizations together," said Glen E. Tellock, Manitowoc president and chief executive officer. "Our announcement today highlights that we are determined to bring to bear the many benefits we believe a combination will deliver. Our increased offer is at a five percent premium to ITW's offer and a 63.7 percent premium to Enodis' average closing price for the 12 months ending April 8, 2008. As such, we believe strongly that our revised offer represents superior value for Enodis' shareholders. At the same time our revised offer still meets our financial objectives of being EPS accretive in two years and EVA positive in three years."

Centurion Data acquires Lake Systems Inc.
Pewaukee-based Centurion Data Systems (CDS), a network infrastructure provider, announced that it has acquired Lake Systems Inc., a Pewaukee software firm that specializes in Enterprise Resource Planning (ERP). With Lake Systems, CDS now has a customizable, robust and fully integrated accounting, manufacturing and distribution application.

"This is very exciting for us. The Midwest has a lot of manufacturing so it gives us an 'in' into a segment of the market that wasn't previously a focus," said Bill King, senior vice president of Centurion Data Systems. "Centurion Data Systems has always provided network infrastructure but our clients are mostly professional service firms, law firms, technical writers, and architects. The addition of an ERP package opens the door to working with manufacturers."

With an ERP application, CDS clients will have a seamless integration between accounting, distribution (including order processing, inventory management and purchasing) and manufacturing (shop floor, routing and bill of materials). Additional customized components can be engineered, including asset tracking, consumable goods tracking, quoting, bar coding, private labeling, lot control and audio/visual shop floor alerts.

"Joining a company like CDS is the ideal scenario," said Rick Benkstein, who founded Lake Systems in 1990 and assumes the title of manufacturing consultant in sales with CDS. "I've been an entrepreneur for almost 20 years. Now I'm part of a team which has expertise in areas that I don't, and I bring to them my ERP background."

"Rick will continue to service his former Lake Systems customers and will help us develop new business," King said. "His strength is his knowledge of manufacturing best practices and he shares CDS' commitment to helping clients use the full potential of their technology software and systems to support their business objectives."

Emteq shareholders invest in Montana partnership
The shareholders of New Berlin-based Emteq Inc. announced they have acquired individual shares of Cable Technologies of Montana Inc. (CTI), a Great Falls, Mont.-based designer and manufacturer of wire and cable-related assemblies. The partnership is intended to strengthen Emtequ's electronic assembly and integration work.

Emteq specializes in avionics systems and integration, interior lighting and cabin comfort as well as exterior lighting products for retrofit and forward fit applications in the military, corporate, helicopter and air transport market. Both companies will retain their names and will continue conducting business as usual. Jerry Jendusa, Emteq's chief executive officer, said, "This partnership provides us with an opportunity to offer a greater realm of products and services that compliments our current product offering, and we will be working together, with CTI, toward common goals in customer and operational excellence in the worldwide aviation industry."

Ed Buttrey, president of CTI, said, "Emteq proves to be the ideal partner in the avionics business. They offer operations, people and processes which provide a level of synergy with our current operations and manufacturing and assembly capabilities to further enhance the growth of CTI in the aerospace and military industry." Buttrey will retain all responsibilities as the president of CTI, and Jendusa will continue his role of CEO of Emteq. The two businesses will collectively be involved customer relations, strategic growth plans and process improvements in growing the businesses and their employees.

DRS to be acquired by Italian company
DRS Technologies Inc. has signed a definitive agreement to be acquired by Finmeccanica, S.p.A. of Rome, Italy, for $5.2 billion. DRS is the parent company of DRS Power & Control Technologies Inc. in Milwaukee at 4265 N. 30th St. The Milwaukee plant was formerly owned by Cutler-Hammer Manufacturing Co., which was acquired by Eaton Corp. and then DRS in 2002. Finmeccanica will acquire 100 percent of DRS stock for $81 per share in cash.

The boards of directors of Finmeccanica and DRS each have approved the terms of the agreement. DRS will operate as a wholly-owned subsidiary, maintaining its current management and headquarters in Parsippany, N.J. DRS' dramatic growth over the past five years and the premium provided through this acquisition will provide attractive returns for our stockholders," said Mark Newman, chairman of the board, president and chief executive officer of DRS. "This investment in DRS - with an increased emphasis on research and development - will mean the combined company will be able to compete for and win additional contracts around the world, accelerating growth and expanding opportunities at our facilities in the U.S.

Milwaukee County's financial health improves
All three of Milwaukee County's bond rating agencies have assigned positive ratings to the county's $30.86 million General Obligation Corporate Purpose Bonds, Series 2008A. The county's ratings are vastly improved from those in the immediate aftermath of the county pension scandal. The improved ratings mean the county can borrow funds at lower interest rates in the future.

In particular, the county is encouraged by Moody's decision to change its outlook from "negative" to a stable "Aa3" rating. Moody's indicated the county has made significant strides to reducing its largest expenditure pressures related to its pension system and employee and retiree health care costs. "This news is very encouraging for the county, in both the short-term and long-term, as we work to improve services for the residents of Milwaukee County," said Milwaukee County Executive Scott Walker.

"The county is improving," said County Board Chairman Lee Holloway. "The future is brighter than it was before. We are on the right path in managing our financial objectives, and we should all be pleased with this positive change in our fiscal outlook." Fitch Ratings-Chicago assigned an "AA" rating to the county's bonds, indicating that the county government has eliminated certain pension benefits for new employees and will focus on cost constraint through better oversight. Standard & Poor's Financial Management Assessment said the county's financial management practices are considered "strong."

Realtor predicts housing market rebound in second half of year
Home sales and prices throughout most of the country, including the Milwaukee market are poised for improvement in the second half of 2008, according to Lawrence Yun, chief economist for the National Association of Realtors (NAR). Speaking at the NAR Midyear Legislative Meetings & Trade Expo last week, Yun said "middle-America" cities that performed evenly over the past few years, such as Milwaukee, Cincinnati and Kansas City, Mo., are likely to experience home price gains in the 20 to 30 percent range over the next five years.

Markets such as Miami, Las Vegas and Phoenix could see prices go up as much as 50 percent during that time period, Yun said. Yun blamed most of the softening of the housing market over the last year on the "subprime mess," where consumers with blemished credit records received loans they could not afford when the interest rates reset to higher levels. "In fact, if you look at where home prices fell the most, it's the markets where subprime loans were prevalent," Yun said.

Cape Coral, Fla.; Detroit; Las Vegas; Miami; Orlando, Fla.; Phoenix and Riverside, Calif. were among the cities with the highest percentages of subprime lending and where the markets suffered the biggest downturns, he said. "It's important to keep things in context," Yun said. "While much of the media is focusing on the fact that the rate of foreclosures doubled this year from historic averages, the foreclosure rate has gone from 1 percent of all homeowners with mortgages to 2 percent. Foreclosures are being driven principally by subprime loans."

Now that the subprime market has dried up, and loans insured by the Federal Housing Administration and those purchased by Fannie Mae and Freddie Mac are making a comeback, the housing markets will strengthen and prices are likely to begin a steady uptick in the coming months, Yun said.

Yun urged the Congress and White House to enact NAR-supported legislation to modernize FHA programs, reform regulation of the government-sponsored enterprises (Fannie Mae and Freddie Mac), establish a first-time home buyer tax credit and make the temporary increases to the conforming loan limits established by the Economic Stimulus Act of 2008 permanent.

"These measures would quickly stabilize the housing markets and get fence-sitters into the market to buy homes," Yun said. "There are many reasons for people to get into the housing market today, and very few reasons not to. With the plentiful supply of homes for sale at affordable prices, interest rates approaching 40-year lows, and the strong track record of housing as a good long-term investment, conditions are ripe for buyers," he added. "Those are the facts, plain and simple."

Foreclosures continue to skyrocket in Wisconsin
Wisconsin mortgage foreclosure filings continue at "escalated levels," according to newly released data compiled by ForeclosuresWI.com, a leading provider of Wisconsin foreclosure resources and statistics. Wisconsin foreclosures have spiked 70 percent over the last three years (from 12,311 in 2005 to 20,995 in 2007), and the first four months of 2008 are showing no signs of improvement.

The number of Wisconsin foreclosures in April 2008 grew to 2,103 homes, up more than 40 percent from the total in April 2007. "We expect foreclosures to remain at escalated levels through 2008, with some experts not predicting a housing market recovery until at least 2010," said Robert Jansen, president of ForeclosuresWI.com. Milwaukee County has the most foreclosures in the state in April, up 42 percent from a year ago.

Jansen sees several factors driving the skyrocketing foreclosure rates. "Consistent with the record number of mortgage defaults nationwide, a mix of adjustable rate mortgage resets, a soft housing market, and the collapse of the subprime mortgage market, have forced many more homeowners into foreclosure," Jansen said. "Adjustable-rate and exotic/subprime mortgage rate resets continue to result in significant increases to many homeowners' monthly mortgage payments. Furthermore, the deteriorating housing market and flood of foreclosures has made it more difficult for those facing financial trouble to quickly sell their home to avoid foreclosure. Compounding the issue, many lenders have tightened lending standards in the wake of subprime mortgage crisis and skyrocketing mortgage defaults, which eliminates many refinancing options for those in trouble."

Fiserv wins national award for employee wellness program
The National Business Group on Health (NBGH), a national nonprofit organization of large employers, recently honored Brookfield-based Fiserv Inc. for its commitment to promoting a healthy workplace and encouraging a healthy lifestyle for its employees and their families.

Fiserv is one of 52 employers that received the Best Employers for Healthy Lifestyles Award at the Leadership Summit sponsored by the NBGH's Institute on Costs and Health Effects of Obesity. Fiserv received a Gold Award in recognition of its successful wellness program, aimed at helping employees and their families adopt healthier lifestyles. This is the first year Fiserv has won a Gold Award, and the third year it has been recognized, receiving Silver Awards in 2006 and 2007.

Fiserv launched its wellness initiative in 2003, developing a comprehensive program to address chronic disease and to keep associates healthy. The strategy includes building a solid foundation for wellness benefits for Fiserv's 25,000 employees in nearly 200 facilities across the United States. One of the most popular Fiserv wellness campaigns, the Healthy You Fitness Challenge, began company-wide in 2006. During the campaign, more than 6,000 employees accumulate nearly 2 million miles of walking, running and biking over the eight weeks of the event. For more information on NBGH and the award winners, visit www.businessgrouphealth.org.