The Economic Stimulus Act of  2008

Time is running out!
The Economic Stimulus Act of  2008
Expires December 31st

The section 179 limits for the first year expense is $250,000 for equipment put into Service by December 31 2008. This is almost twice the 2007 limit. Your business can take an immediate expense deduction of the full purchase amount for equipment costing less that $250,000 and $250,000 for equipment costing between that amount and $800,000. This tax incentive makes it a good idea to aquire capital equipment to satisfy future needs now before the Stimulus Act expires.

In other words…
All machinery bought now through the end of the year 12/31/08 can be taken as an immediate expense deduction for on the full purchase amount for any equipment less that $250,000!!!
Or
$250,000 expense deduction for equipment bought between $250,000 and $800,000!

Here’s a simple example:
Total cost of equipment: $50,000
First year expense deduction: $50,000 (full amount)
Tax savings on deduction: $17,500
Effective cost of equipment $32,500

(Example assumes 35% tax rate)

Click here for more information.