As a benefit of the American Recovery and Reinvestment Tax Act of 2009, beneficial provisions of IRC Section 168(k) (relating to bonus depreciation) and Section 179* (relating to increased deductions) have been extended for new equipment and software placed in service.
* The extension of these provisions results in potentially lucrative tax breaks for eligible technology purchases. Bonus depreciation is available for all businesses and provides an immediate depreciation deduction of 50 percent of the cost of new equipment and software placed in service during calendar year 2009. For taxable years beginning in 2009, 100 percent of new equipment and software purchases up to $250,000 can be expensed immediately. To limit this benefit to small businesses, the maximum immediate expense amount is reduced dollar-for-dollar to the extent that a taxpayer’s total new equipment and software purchases for the year exceed $800,000. (None of this information should be construed as or constitutes tax advice—please consult your tax adviser for a complete and detailed analysis.)
For more information on this tax break visit the IRS website.