This is great news for small business. How great?
All businesses that purchase or finance less than $800,000 in business equipment should qualify for the Section 179 Deduction. To qualify for the Section 179 Deduction, the equipment purchased must be placed into service between January 1, 2010 and December 31, 2010. The list of qualifying equipment includes machines purchased for business use, vehicles, computers, and property attached to your building that isn’t part of the structure (essentially, most material handling equipment). For more information, check out the Section 179 website – it has lists of qualifying companies and an online calculator that helps you figure out your position. As always, see a tax professional to ensure your company and purchase qualify.
Please Note – The HIRE Act does not extend the 50% bonus depreciation that was available in the 2009 tax year. We’ll let you know if there is movement toward extending that credit.