TAX INCENTIVE

Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act)

On December 17, 2010, the President signed into law the 2010 Tax Relief Act which includes 100% bonus depreciation for machinery and equipment placed into service after September 8, 2010 and before January 1, 2012. The 2010 Tax Relief Act also makes 50% bonus depreciation available for machinery and equipment placed into service after December 31, 2011 and before January 1, 2013.

Bonus Depreciation

All businesses will be given a 100% bonus depreciation deduction on qualified, new machinery and equipment purchased after September 8, 2010 and before January 1, 2012, and 50% bonus depreciation deduction for purchases after December 31, 2011 and before January 1, 2013, regardless of the total amount invested.

Section 179 Depreciation

Under the previously passed 2010 Small Business Jobs Act, companies are able to fully expense $500,000 in tangible property purchased in 2010 and 2011 up to an overall investment of $2,000,000. If the purchase exceeds $2,000,000, the $500,000 deduction begins to phase out dollar-for-dollar during the tax year. Under the 2010 Tax Relief Act, companies are able to fully expense $125,000 in tangible property purchased in 2012 up to an overall investment of $500,000.

Use tax savings to make your payments.
The tax incentives promote savings and better cash flow for businesses that invest in new machinery and equipment.

FINANCING YOUR NEW EQUIPMENT MAY RESULT IN TAX SAVINGS EXCEEDING YOUR MONTHLY PAYMENTS FOR THE FIRST YEAR AND BEYOND, RESULTING IN A CASH POSITIVE INVESTMENT

Below is an example of the positive cash flow benefit from tax savings: