Small Business Jobs Act
NEWS ALERT: On Dec. 17, President Obama signed legislation that would extend and expand the depreciation bonus through 2012.
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provides 100 percent depreciation bonus for capital investments placed in service after September 8, 2010 through December 31, 2011. For equipment placed in service after December 31, 2011 and through December 31, 2012, the bill provides for 50 percent depreciation bonus. Note: The Small Business Jobs Act of 2010, which contained 50 percent depreciation bonus, still applies to purchases made between January 1, 2010 through September 7, 2010.The new law also extends Sec. 179 expensing for taxable years beginning in 2012. In 2012, a taxpayer may expense up to $125,000 of the cost of qualifying property placed in service for the year (phase-out threshold of $500,000), indexed for inflation. Note: The Small Business Jobs Act, which increased Sec. 179 expensing levels to $500,000 (phase-out threshold amount is $2 million) for the taxable years beginning in 2010 and 2011, still applies. On September 27, 2010 the Small Business Jobs Act (SBJA) was signed into law, providing valuable incentives to help you buy to new equipment you need for your facility.