Did You Know ...........???
The American Recovery and Reinvestment Act of 2009 extends the 50% bonus depreciation enacted as part of the Economic Stimulus Act of 2008 for one additional year. With this plan, 50% bonus accounting depreciation deduction is allowed on manufacturing equipment purchased and placed into service in 2009. The remaining 50% of adjusted basis is recovered in 2009 and subsequent years as stated in the rules of present law.
- Small Business companies also receive a temporary extension of Net Operating Loss carrybacks
- Companies without federal tax liability may be able to receive a refundable cash credit in lieu of bonus depreciation
- An additional tax credit is allowed if machinery placed in service is part of an advanced energy project
Take advantage of this investment incentive of 50 percent bonus depreciation, plus enhanced expensing limits. For a qualifying company, capital equipment purchases up to $250,000 could be fully deducted in the first year. Ask your tax professional for more information on this important initiative.
Taping
