2009 Tax Benefits for Acquiring Equipment

Tax benefits that aided businesses in acquiring new equipment in 2008 were extended to 2009 when President Obama signed into law the American Recovery and Reinvestment Act (ARRA) on February 17th, 2009.

Under Internal Revenue Code Section 179, businesses are allowed to expense up to $250,000 on most equipment or software placed in service during the tax year 2009. Additionally, they are able to expense 50% of the remaining figure under the depreciation bonus provision.

According to the Monitor Daily (www.monitordaily.com), the Associated Equipment Distributors has sponsored a website that explains the provisions in more detail and provides a tax calculator (www.depreciationbonus.org) to illustrate examples of deductions.

The Monitor Daily, a leasing industry trade journal, reported that Section 179 led to increased sales among equipment manufacturers as customers reaped the benefits of this tax deduction.