2011 Tax Incentives for Manufacturing Companies

 

Section 179 Federal Income Tax Deduction: $500,000 Write-Off

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.

$1 buyout leases qualify!

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. For investments in machinery placed in service after September 8, 2010 and through December 31, 2011, the bill provides for 100% bonus depreciation. For machinery investments placed in service after December 31, 2011 and through December 31, 2012, the bill provides for 50% bonus depreciation.

Always check with your accountant to confirm eligibility for tax benefits.

Contact Omni Leasing: 5600 Greenwood Plaza Blvd., Ste 350 Greenwood Village, CO 80111 Ph: 800-989-2308 Fax: 720-748-3998 E-mail: info@omnileasing.net Web: www.omnileasing.net		Contact Geneva Capital: 522 Broadway Street, Ste 4 Alexandria, MN 56308 Ph: 800-408-9352 Fax: 800-284-3974 E-mail: sales@gogenevacapital.com Web: www.gogenevacapital.com