American Recovery and Reinvestment Act of 2009 Extends
Depreciation and Expensing Bonuses for Capital Equipment Purchases
The American Recovery and Reinvestment Act of 2009 (the Act)
signed into law on February 17, 2009 extends the significant
incentives for the purchase of new equipment that were introduced in
2008. Savvy manufacturing facilities will take full advantage of
these incentives and potentially save tens of thousands of dollars
on their 2009 taxes.*
Equipment Depreciation Bonus (New Machines Only)
- Allows additional first-year depreciation of 50% of the
purchase cost
- Applies to purchases of tangible personal property with a
MACRS recovery period of 20 years or less
- Covers new equipment purchased and placed into service by
Dec. 31, 2009
- Is allowed for both regular and alternative minimum tax
purposes
Expanded Expensing, Section 179 (New or Used Machines)
Increases the Expensing Limit to $250,000 and the Phase-out Cap
to $800,000
Lease payments are generally lower than all other financing options - and are 100% deductible against taxable income.
Allows companies to expense purchases up to $250,000 as long as
expenses do not exceed $800,000; expensing is phased out for each
dollar that purchases exceed $800,000
Covers new and used equipment purchased and placed into service
by Dec. 31, 2009
Can be combined with the Depreciation Bonus
ESS Technologies has the equipment you need. Now you have a sound
financial reason to buy. Call us today, and let ESS Technologies, Inc. help
you take full advantage of this lucrative tax break.
*The information in this brochure is provided by ESS Technologies, Inc.
as a public service to equipment purchasers. It should not be construed as
tax advice or as a promise of potential tax savings or reduced tax
liability. For more information about the depreciation bonus, contact your
tax professional or visit the
Internal Revenue Service website.
