NEW! 2012 Tax Incentives for Manufacturing Companies

$139,000 write-off! (reduces December 31, 2012)
Section 179 Federal Income Tax Deduction: This deduction allows a company to deduct the first $139,000 of equipment (Section 179 Property) purchased in 2012 from their taxable income. For companies purchasing (or leasing with a $1.00 buyout lease) up to $560,000 of equipment in 2012, this deduction is available in full. It then phases out on a dollar for dollar basis for amounts over $560,000. $1 and $101 buyout leases qualify!

50% Bonus Depreciation (expires December 31, 2012)
Additionally, companies can take 50% bonus depreciation on the adjusted basis of their qualified equipment purchased in 2012. Equipment must be purchased and placed into service on or before December 31, 2012.

Companies may be eligible for standard depreciation, plus state or local tax incentives.

Taxes go up in 2013!
On December 17, 2010 "Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010" (H.R. 4853) was signed into law, temporarily increasing the Section 179 deduction limits for 2011 and 2012. These increases are set to expire in 2012 unless new legislation is signed into law. The Section 179 write-off will drop to $25,000 (indexed for inflation) and bonus depreciation will expire all-together. Equipment must be "in-place and in-service" by December 31, 2012 to tax advantage of current incentives. Now is the time to invest in new equipment!

 There is still time in 2011 to cash in on Section 179 deductions! 

 Happy 4th of July to everyone out there. PASCO wishes you a safe and fun weekend!

NEW 2011 Tax Incentives for Manufacturing Companies

$500,000 write-off!
Section 179 Federal Income Tax Deduction: This deduction allows a company to deduct the first $500,000 of equipment (Section 179 Property) purchased in 2011 from their taxable income. For companies purchasing (or leasing - with a $1.00 buyout lease) up to $2,000,000 of equipment in 2011, this deduction is available in full. It then phases out on a dollar-for-dollar basis between $2,000,000 and $2,500,000 and it is not available for companies purchasing over $2,500,000 of equipment in 2011. However, companies can finance purchases over $2,000,000 with an operating lease and may still be able to claim this deduction.

100% Bonus Depreciation for Machinery in 2011
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) was passed by the United States Congress on December 16, 2010 and signed into law by the President on December 17, 2010. This drops to 50% in 2012. Act now to maximize your tax savings. Always check with your accountant to confirm eligibility for tax benefits.