March 14, 2011
The act increased the maximum amount a taxpayer may expense under IRC 179 to $500,000 versus $250,000 for 2009. Additionally, it increases the phase-out threshold amount to $2,000,000 for tax years beginning in 2010 and 2011.
Moreover, the bill extended first-year 50% Bonus Depreciation available under IRC 168(k) to apply to property acquired and placed in service in 2010. Thus allowing taxpayers the ability to deduct 50% of the depreciation for new assets placed in service in 2010. Effective September 9, 2010 taxpayers are allowed 100% bonus depreciation through The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.