Now is the time to invest in that new ozone laundry system because you can write off 100% of the expense THIS year as a “bonus” depreciation allowance.  Further, the limits on investment deductions for qualified businesses are higher this year.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010  (the Reid-McConnell Tax Relief bill) allows businesses to write off capital expenses incurred during 2011.  Since we are getting near the end of the year, it’s time to act to capture this gain.

Temporary Extension of Bonus Depreciation

This law, enacted December 2010, extends the “bonus” depreciation scheme originally set for 2008 – 2009, and increased it to 100%.  Through December 31 of this year, investments in new equipment placed in service qualify for the extra depreciation treatment.  After December 31, the depreciation allowance drops to 50% for equipment investments placed in service through December 31, 2012.

Section 179 Deductions

The Reid-McConnell bill also temporarily extended the ability of a business to deduct qualified investment expenses in the investment year rather than depreciate them over time.  Currently, under Section 179 rules, a business can deduct up to $500,000, with a phase out limit of $2,000,000, through December 31.  Beginning in 2012, these limits will revert to $125,000 and $500,000, indexed for inflation.

2011 is the Year to Invest

There is still time to act to take advantage of these higher 2011 limits.  Contact DEL to find out how you can save now with a 2011 ozone laundry system, and continue to save through lower operating costs forever, backed by the DEL Clean Ozone Laundry Program.