Maximize your profits through the American Recovery and Reinvestment Act
Here is some helpful information that has recently crossed my desk.
The American Recovery and Reinvestment Act extends for purchases made in 2009 a 50% bonus depreciation allowance for new machine tools and other equipment ordered and placed in service during 2009, as well as an increase in Section 179 expensing and placed for small business equipment purchases.
The one-year 50% bonus depreciation means you can write off 2009 an extra 50% of the cost of your new equipment that you buy and start using in 2009 (*Qualifying companies can still receive the 50% bonus depreciation if the new equipment they order has a recovery period of 10 years or more, takes more than a year to produce and costs more the $1 million. Under those circumstances, they are given until the end of 2009 to place the equipment into service).
The boost to $250,000 in Section 179 expensing is extended for new and used equipment purchases made and placed in service in 2009. The amount decreased to $128,000 in 2010. Moreover, the cap on how much equipment can be purchased to enjoy the write-off remains at $800,000 in 2009. In 2010, that amount dropped to $510,00 Check with your financial consultants and CPA to confirm this information is valid for your business.
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