In case you didn’t know, President Obama has signed the Bill to extend the generous tax incentives you’ve been dreaming of.
Section 179 is the first of of this two-part tax incentive, and pertains to new and used equipment and software. This tax incentive is generally taken before the Depreciation Bonus, and will forever remain at the $500,000 level.
The incentive starts to phase out dollar-for-dollar for total equipment purchases over $2 Million of qualified equipment purchases and completed eliminated above $2.5 Million.
Finally, the Section 179 cap is indexed to inflation in $10,000 increments in future years.
Part two consists of the 50% Bonus Depreciation, which has been extended through 2019. This will allow business of all sizes to depreciate 50 percent of the cost of new equipment purchased and put into service during 2015, 2016, and 2017. However, the bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.
This is great news for businesses that made purchases last year, and those who plan to improve their plant efficiencies over the next couple of years through making equipment purchases. These tax incentives are the tax dollar savings you need to help grow your business! Check with your CPA to see how these potential tax incentives can help your company.
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