Tax Law

NEW 2010 Tax Incentives for Manufacturing Companies 2010 Tax Law

Always check with your accountant or financial advisor to verify tax or accounting issues and any tax benefits.

A $250,000 write-off!
Section 179 Federal Income Tax Deduction: This deduction allows a company to deduct the first $250,000 of equipment (Section 179 Property) purchased in 2010 from their taxable income. For companies purchasing (or leasing - with a $1.00 buyout lease) up to $800,000 of equipment in 2010, this deduction is available in full. It then phases out on a dollar-for-dollar basis between $800,000 and $1,050,000 and it is not available for companies purchasing over $1,050,000 of equipment in 2010. However, companies can finance purchases over $800,000 with an operating lease and may still be able to claim this deduction.

Standard Depreciation
Additionally, companies can take their standard depreciation deductions on the adjusted basis of qualified equipment. Machine tools and fabricating equipment are typically depreciated over 7 years.