Source: Association of Equipment Manufacturers
The Association of Equipment Manufacturers (AEM) urged Congress last week to reinstate the 50-percent bonus depreciation, a tax provision that helped equipment manufacturers last year during painful economic times. AEM said the bonus depreciation was especially valuable to smaller companies as an effective economic stimulus tool, helping them stay in business and provide jobs.
The bonus depreciation provision allows businesses to deduct 50 percent of the cost of new equipment in the year it is placed in service. The provision was included in the Economic Stimulus Act in early 2008 and extended to 2009 by the American Recovery and Reinvestment Act.