IMPORTANT TAX INCENTIVES EXTENDED
SEC. 179 MADE PERMANENT - BONUS DEPRECIATION EXTENDED FOR FIVE YEARS
SECTION 179 “SMALL BUSINESS” EXPENSING
- Retroactive to 1/1/15, the Sec. 179 expensing allowance is permanently restored to $500,000 for new and used equipment purchases ordered and placed in service in a given tax year.
- There is a $2 million cap on new and used equipment purchases to fully enjoy the $500,000 write-off (after which the deduction phases out dollar for dollar).
- Bonus depreciation on new equipment purchases is allowed for 2015-2019 tax years. Unlike Sec. 179, it applies only to new equipment, and there is no cap on the amount that can be depreciated under this provision. Bonus depreciation percentage is 50 percent for property placed in service during 2015, 2016, and 2017, but then phases down to 40 percent in 2018 and 30 percent in 2019.