Take Advantage of the Tax Break

Manufacturing Engineering, Jun 2008

The IRS has issued guidelines for companies wanting to take advantage of the depreciation allowance that is contained in the recently passed Economic Stimulus Act of 2008. That bill provides a significant tax incentive for businesses making capital investments by adding a special 50% depreciation allowance for qualifying purchases.

This special bonus-depreciation allowance is available to all businesses and applies to most types of tangible personal property and computer software acquired and placed in service in 2008. It allows taxpayers to deduct 50% of the cost of qualifying property in addition to the regular depreciation allowance that is normally available. An 1RS description of the business provisions contained in the Economic Stimulus Act of 2008 is available at http://www.irs.gov/pub/irs-pdf/p553.pdf.