An often overlooked component of the IRS Tax Code allows businesses to recognize significant tax savings when they invest in capital equipment. Known as Section 179, this law allows all businesses to write off/depreciate the full purchase price of equipment purchases during 2011, providing opportunities for significant tax savings, on purchases before year end.

The Small Business Jobs Act (SBJA) of 2010 increases the IRC section 179 limitations on expensing of depreciable business assets and expands the definition of qualified property to include certain real property for the 2010 and 2011 tax years.

Under SBJA, qualifying businesses can now expense up to $500,000 of section 179 property for tax years beginning in 2010 and 2011 with a phase-out threshold of $2,000,000.

As one example, investing $25,000 in equipment (including used equipment or demo vehicles) could save a company $8,750 in Federal taxes alone.  By increasing the investment, the company can achieve significantly larger savings.

We strongly encourage our customers to seek personalized, professional tax advice before making decisions based on Section 179. In accordance with Section 179, We can ship most Bucks™ Fabricating, Switch-N-Go™, and AmeriDeck™ products prior to year-end.