NEWS ALERT!

Through two congressional acts late in 2010, the Section 179 Tax Deduction limit was increased to $500,000 for the 2011 tax year, and the total amount of equipment that can be purchase was increased to $2 million. Additionally, the "Bonus Depreciation" was increased to 100% on qualified assets.

Essentially, Section 179 of the IRS tax code allows both large and small businesses to write off 100% of their new equipment purchases that are up and running by the end of this year. In 2012, the bonus drops to 50% of new equipment purchases - still a good incentive to retool and upgrade your manufacturing operations. In 2013, bonus depreciation disappears completely.