In 2010, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act was signed into law. This new law, among many other things, gives tax aid to individuals and businesses through changes to the existing tax rates, tax credits, and a new bonus depreciation program.
One of the more exciting parts of this law and one that can help many businesses is the new bonus depreciation program, which allows businesses to take the full deduction of qualifying assets (including C&H Products) purchased between now and December 31, 2011 on their 2011 tax return instead of depreciating the value of said assets over a typical seven years. This allows businesses to receive tax relief sooner on their equipment purchases! The government expects that this change alone will lead to a potential generation of $50 billion dollars in additional investments this year.
For some more information and a helpful chart showing the value of depreciating assets over 1 year as opposed to 7 years, see CH’s Special 2011 tax savings page.
Please do note that we are not tax advisers and this information shouldn’t be construed as advice. Please check in with your tax professionals for more details on the benefits of the program.