NEW 2012 Tax Incentives for
Manufacturing Companies 2012 Tax Law
Always check with your accountant or financial
advisor to verify tax or accounting issues and any tax benefits.
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50% BONUS DEPRECIATION TO EXPIRE AND SECTION 179 WRITE-OFF
SCHEDULED TO DROP TO $25,000 AFTER 2012
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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 or $101 buyout) 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!
Always check with your accountant
to confirm eligibility for tax benefits.
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**Specials**