Need some new equipment? The government wants to help!

The American Recovery and Reinvestment Act of 2009

Creating Jobs, Supporting the States and Investing in Our Country’s Future The United States is facing its deepest economic crisis since the Great Depression, one that calls for swift, bold action. The goals of this legislation are the same as they have been from day one: to strengthen the economy now and invest in our country’s future. The American Recovery and Reinvestment Act extends for purchases made in 2009 increased Section 179 expensing for small business equipment purchases, as well as a 50% bonus depreciation allowance for new machine tools and other equipment ordered and placed in service during 2009. ü       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 decrease 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 drops to $510,000. ü       The one-year 50% bonus depreciation means you can write off in 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 than $1 million.  Under those circumstances, they are given until the end of 2009 to place the equipment into service.) Read more and view examples on how these incentives can work for you and your customers. Here are some other documents that are useful in explaining the American Recovery and Reinvestment Act: Stimulus package spending summary Stimulus appropriations