The American Recovery and Reinvestment Act has been extended for purchases made in 2009. It increases Section 179 expensing for small business equipment purchases, as well as allowing a 50% bonus depreciation for new machine tools and other equipment ordered and placed in service during 2009
Under the one-year Section 179 extension, small businesses can ALSO expense the first $250,000 for the 2009 tax year (until 1/1/10). The 50% bonus depreciation can then be taken on the remaining basis of the machine, if it is new.
