Continuing Tax Incentives For Qualified Business Equipment

As 2012 begins, the tax incentives available to business owners on new and used equipment acquired in the calendar year are not entirely clear.  However, it appears that two tax sections from previous years will continue to offer some benefit to business owners.

SECTION 179 - EXPENSING FOR NEW AND USED PACKAGING EQUIPMENT

BONUS DEPRECIATION ON NEW PACKAGING EQUIPMENT

The Accelerated, or Bonus, Depreciation has been bumped up and down during the past couple years.  This incentive applies to new equipment purchased and placed in service by a specific date.  It appears that for the time being the first year bonus depreciation will return to 50% for the 2012 tax year.

Keep in mind that these sections of the tax code are, and always have been, temporary.  Increased expensing and 50% bonus depreciation on packaging equipment still offers businesses a great incentive to purchase packaging equipment in 2012, as the next change to this tax law may be the disappearance of these incentives completely.  As the country arguably moves farther out of the recession of 2008, the trend is to lessen or eliminate tax incentives like Section 179 and Bonus Depreciation.

NOTE:  Both the federal and state tax codes are constantly changing.  This website does not offer tax or legal advice, consult with your attorney or accountant for the latest on tax incentives and benefits.