Section 179 Tax Incentive Changes for 2010
| January 18, 2010Tech Financial Services knows that is is important to keep up with regulations and tax laws affecting the capital equipment market for manufacturers using capital intensive machine tools and otters manufacturing equipment in their business operations. Here is an overview of the changes to the section 179 tax incentives for 2010 and how they affect manufacturing companies.
The latest 2010 tax incentives for manufacturing companies and the revised section 179 American Recovery and Reinvestment Act for 2010.
For 2010, Section 179 will allow a business to expense up to $134,000 of qualified property until purchases exceed $530,000, above which the allowable deduction is reduced dollar for dollar up to $664,000, at which point the Section 179 deduction is totally phased out. Right now for 2011, the expensing limit goes back to $25,000 with an investment ceiling of $200,000. The stimulus increase in first year depreciation that we saw in 2008 and 2009 is gone for 2010, but the effects will be here for a few years yet.
Example of 2010 Tax Stimulus
$500,000.00 New Machinery Equipment Acquired in 2010
$134,000.00 Extended Section 179 Deduction
$ 52,301.40 14.29% Standard Depreciation
$186,301.40 Total First Year Deduction
$ 65,205.49 Cash Savings, based on 35% Tax Rate
Note: Machine tools and fabricating equipment are typically depreciated over 7 years. Consult with your accountant. The above calculations are only estimates; everyone’s tax situation is different.
The experts at Tech Financial have been in the Equipment financing and leasing business for over 23 years. Our combined experience exceeds 50 years in the industry.
We understand the machine tool industry and our programs will give you the flexibility to acquire the equipment you need. Whether you require a loan, a lease, or a custom tailored alternative; we can offer a package that fits within your business plan and best serves your financial needs.
If you have further questions contact us at 414-224-0220 or email Mark with your questions at markc@techfin.net.
