American Recovery and Reinvestment Act
Shelton Machinery is reminding customers that the
HIRE ACT has been enacted into law, extending the
American Recovery and Reinvestment Act’s increased
Section 179 benefits to small businesses. The incentives
will remain throughout 2010 before being reduced
substantially in 2011.
Under the provisions of the HIRE ACT, Section 179
expensing has been increased to a maximum of $250,000
for capital equipment purchases ordered and placed in
service in 2010. To qualify for the write-off, a small
business is defined as purchasing less than $800,000 in
equipment over the course of the year. In 2011, the
terms will change to apply only to those businesses
purchasing less than $500,000 in equipment and the total
maximum deduction will drop to $125,000.
“The government has taken action to encourage small
businesses to invest in ways that will allow them to
capitalize on the rebounding economy,” says Brian Papke,
president of Mazak Corporation. “This provides
significant opportunity for manufacturers to embrace
refocusing, rediscovering and reinventing their
processes, a concept we have supported heavily over the
past year.”
At present, 50% bonus depreciation does not apply to
2010 new equipment purchases.
Click here for more information on this Act.
