Say you invested in web development. How does the above scheme work in terms of accounting for the actual deductions?
Web development (and anything else business related) would already be 100% tax deductible. Now it would be 120%.
So if I spent $1000 then I can claim $1200 as the expense. So $200 extra comes off my taxable income. Which of course is not the same as getting $200 back, it's way less than that.
Presumably there will be some form you have to fill in (or some accouting category) to state that this expense meets the new rule category.