Tax Incentives

In the tax bill passed by Congress in December, there were a number of incentives beyond the extension of the Bush-Era tax credits.  One of them was the increase in the bonus depreciation rate to 100% for small businesses (section 179), which was increased to 100% for equipment purchases up to $500,000.

This means that 100% expensing is possible on purchased, financed or leased equipment up to $500,000 for machines bought after Sept 8, 2010 and placed into service before Jan 1, 2012.

Section 179 Tax Incentive Example