The American Recovery and Reinvestment Tax Act of 2009!

On 2/17/2009 Congress continued the largest tax savings in U.S. history for businesses.  Businesses that spend up to $800,000 total in 2009 on new or used equipment can elect to expense up to $250,000 under IRS Section 179 for tax year 2009.  The rules are designed for small companies, so the $250,000 write-off begins to phase out dollar-for-dollar for businesses that purchase more than $800,000 worth of equipment this year.

For the balance of investment costs over $250,000 on new equipment, or for companies who don’t qualify for IRS Section 179, a one time bonus depreciation allowance, in addition to regular depreciation is allowed for new equipment put into service before January 1st, 2010 regardless of the amount purchased in 2009.

Use tax savings to make your monthly payments!  Finance your new equipment or lease with a $1.00 purchase option and your company can take advantage of the IRS Section 179 deduction, 50% Bonus depreciation, and regular depreciation.  Companies may also be eligible for additional state and local tax deductions plus interest deductions.  You may find the tax savings exceed your monthly payments for the first year or more, resulting in a cash positive acquisition.

If you would like to download your own section 179 tax calculator to examine your own purchase click here .