Tax incentives for equipment purchase extended through 2013
50% BONUS DEPRECIATION EXTENDED
A 50% bonus depreciation on new equipment purchases has been extended to 2013. Unlike Sec. 179 there is no cap on the amount of equipment that can be depreciated under this bonus depreciation provision.
SECTION 179 "SMALL BUSINESS" EXPENSING INCREASED
The Section 179 expensing allowance has been increased to $ 500,000 for new and used equipment purchases ordered and placed in service in 2012 and 2013 tax years. Moreover, the cap on how much equipment can be purchased to fully enjoy the write-off increase to 2 million dollars (after which the amount that can be deducted phases out dollar for dollar).