Tax Breaks Mean Now's The Time to Buy

摘要

On May 28th, President Bush signed the Jobs & Growth Tax Relief Reconciliation Act of 2003 into law. Part of the act is designed to encourage small businesses to acquire equipment to improve their businesses. As a result, the act will bring significant tax breaks to drycleaning operations purchasing new equipment in 2003. The bill features two provisions that offer drycleaners significant tax breaks on their 2003 taxes if they purchase equipment by Dec. 31, 2003. The first is the Section 179 deduction; the second is the act's bonus depreciation feature. And in addition to the one-time bonus depreciation feature, you can depreciate the remaining balance over five years (including the first year's 20% of the remaining balance in 2003), if the equipment is placed into service in 2003.