Is Section 179 expensing for qualified property still in place?
Section 179 allows businesses to elect to deduct the full purchase price of a qualifying piece of equipment purchased during the tax year. Like bonus depreciation, this incentive is designed to encourage businesses to invest in themselves and spend on equipment and other property that will help fuel growth. Of course, there are limits. A total of $250,000 can be written off, and the total amount of equipment purchased is limited to $800,000. The deduction phases out after this point. The government did not roll back expensing limits to $125,000 and $500,000 as planned, but extended the higher limits through 2009. Businesses can now take advantage of both Section 179 and bonus depreciation. Are there tax advantages for companies that do not elect to apply bonus depreciation to qualified purchases this year? There is an opportunity to forgo bonus depreciation, and instead elect to take certain refundable tax credits. In particular, companies that are operating at a loss this year and hav
