The Taxman Taketh, but He Can Giveth (but only for a year)

Recently we were speaking with Stacey Pandeloglou from Distribution Technology Group about the state of technology in the electrical industry.  He mentioned recently passed legislation that can help distributors become more productive, and profitable.  We asked him to contribute to ElectricalTrends.

As the owner of a technology company, I try to constantly keep my eye out for reasons why distributors should look to upgrading their infrastructure now versus later. With the recently passed legislation that has increased the Section 179 Deduction, it may be time for distributors to revisit this subject. The deduction is now up to $500,000 for qualified equipment and software placed in service in 2010 and 2011. This increase was specifically targeted to small businesses and provides them with a great incentive to reduce their current federal taxes.

Additionally, the legislation has restored 50% Bonus Depreciation for qualified equipment and software placed in service in 2010. This measure benefits both small businesses and large businesses because it is not capped. Even though the equipment or software is leased, businesses can take advantage of both tax incentives.

To learn more about Section 179 and Bonus Depreciation and to download a Section 179 Calculator, go to http://section179lease.com/. Please let Stacey know if you would like any additional questions (or are interested in some software!).