President Bush on Friday, June 1, signed the Small Business and Work Opportunity Tax Act, H.R. 2206, which had become a part of the War Supplemental Bill.
The legislation includes a provision that extends and increases a benefit available to small businesses, which allows them to elect to deduct currently the cost of business property in the year it is placed into service, instead of depreciating such property over a number of years. This benefit was to expire at the end of 2009, but now has been extended through 2010.
In addition, effective immediately, the amount of property that may be expensed in this fashion for a single year has been increased from $100,000 to $125,000. For example, tractor and trailer purchases up to $125,000 would be eligible for expensing.
