On December 17, 2010, President Obama signed into law legislation that extended and expanded the BONUS DEPRECIATION TAX INCENTIVE through 2012 for businesses that purchase equipment. By financing through our 100% equipment cost financing program, businesses can enjoy all the cash benefits of the tax savings, with little or no cash up-front.*
By taking advantage of this law, companies can dramatically cut their tax bill and free up cash in the near term to invest back into their businesses. Specifically:
- 100% depreciation bonus is allowed for qualifying equipment that was acquired and placed in service after September 8, 2010 through December 31, 2011.
- For qualifying equipment acquired and placed in service after December 31, 2011 through December 31, 2012, the bill provides for 50% depreciation bonus.
- The Section 179 write-off was doubled to $500,000 through 2011.
| Your 2011 Equipment Purchases | $800,000 |
| First Year Write Off The Section 179 expense deduction doubled to $500,000 in 2011 |
$500,000 |
| Bonus First Year Depreciation
Bonus depreciation of 100% on remaining value ($300,000 x 100%) |
$300,000 |
| Total First Year Deduction
($500,000 + $300,000) |
$800,000 |
| Tax Savings
Assuming tax rate of 35%.($800,000 x 35%) |
$280,000 |
| Total Equipment Cost:
Equipment purchase minus tax savings ($800,000 - $280,000) |
$520,000 |
Western Alliance Equipment Finance is dedicated in providing a relationship-based approach to product delivery, superior customer service, local representation and responsiveness with judicious and focused risk management. Before you make your next equipment lease or purchase, contact us or call us at 602.797.3690 and discover innovative and responsive equipment finance solutions from Western Alliance Equipment Finance.
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