The United States Senate included a provision to allow businesses to write-off 50% of the cost of newly purchased depreciable property as part of a larger bill (HR 5297) to provide banks with access to funds intended for small-business loans. The SEMA-supported legislation has already been passed by the House and is now being debated by the U.S. Senate.
The legislation would create a $30 billion dollar fund available to smaller financial institutions. Interest rates charged to use the monies would be lowered if the banks loaned the monies to small businesses. The Senate bill would also extend the bonus depreciation through 2010. In 2008 and 2009, all businesses were permitted to immediately write off 50% of the cost of new equipment (“bonus depreciation”). The depreciation expired at the end of 2009.
SEMA contends the depreciation write-off encourages companies to invest in newer, more efficient equipment and spurs sales and creates jobs.
For more information, contact Dan Sadowski at email@example.com.