2011

Depreciation Bonus and Section 179 Deductions Set to Expire 12/31/11

Recently the U.S. Federal government made a change to the tax code which provides unprecedented incentives for investing in manufacturing technology. Specifically, the U.S. Federal government has increased “Bonus Depreciation” to 100% on qualified assets, which includes software. This level of “Bonus Depreciation” is up from 50% last year. Simply put, this level of tax incentive to stimulate business investment is unprecedented. It is also very temporary as this provision is set to expire at the end of 2011.

Separate to this provision, for those purchasers who wish to take advantage of Section 179, the Section 179 deduction for capital equipment purchases, which includes software, has been increased from the previous limit of $250,000 to $500,000. This change will be in effect through the end of 2011.

Source: depreciationbonus.org

This information is sponsored by Delcam Healthcare Solutions www.delcam-healthcare.com

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