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Business Phone Systems, Telephone Systems – Digicom
NEWS & EVENTS

November 03, 2010
Small Business Jobs and Credit Act of 2010: How You Can Benefit

Small Business Jobs and Credit Act of 2010: How You Can Benefit

 

UCB

 

 

Effective September 27, 2010, the Small Business Jobs and Credit Act of 2010 (H.R. 5297) was enacted into law and had a substantial impact on Section 179 limits - almost doubling them. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year.

 

That means that if you buy (or lease) a piece of qualifying equipment, in many cases you can deduct the FULL PURCHASE PRICE from your gross income. But to get the tax benefits for tax year 2010, you need to act before midnight on December 31, 2010.

 

Consider investing in new technology now, rather than deferring any decision until 2011 so that you can take advantage of the two key benefits that Section 179 offers you!"

 

BENEFIT # 1 - Increased Expense Deduction:

Section 179 expensing is available to businesses on the purchase of property. Under the Act the expensing amount of $250,000, that was extended for use in 2009, has been raised to $500,000 for eligible property acquired in 2010 and 2011.

 

BENEFIT # 2 - Bonus Depreciation

The Act contains a provision that allows businesses to accelerate the depreciation ("Bonus Depreciation") of an additional 50% of the cost of qualified capital investments purchased and placed into use during 2010 (or 2011 for certain long-lived and transportation property). This allows for the expensing of 50% of investments that are in excess of the Section 179 limit referenced above with a phase-out threshold amount that is now raised to $2,000,000.

 

NEC Financial Services can assist you by providing a finance contract for your technology acquisition that allows you to benefit from these tax incentives.

 

Business technology investments eligible under the stimulus act include:

 

     -Unified Communications

     -Software-Based Communications Platforms

     -Communications Servers and Systems

     -Call Center and Voice Mail applications

     -Computer Servers and Storage Devices

     -Business Software Applications

 

The quote from Chris Fletcher, Section 179.org's  spokesperson (a website sponsored by finance and tax professionals), best sums up Section 179's advantages:

 

"It's been a rough two years for many businesses, and now with these new increases in tax deductions for equipment, software, and vehicles - all of a sudden, 2010 can look a whole lot brighter in terms of net profit from the Section 179 tax deduction combined with equipment financing" said Fletcher. "This is because if a company finances or leases the equipment, they can take the entire deduction this year, while only paying out a small portion. So Section 179 can literally result in net positive dollars deposited in a company's bank account - giving a substantial boost to a company's bottom line this year," Flethcer aded.**

 

* NEC Corporation of America and DIGICOM encourage customers to seek tax advice from their professional advisors in how the Act can work for them

** Section179.Org press release, September 28, 2010