2009 Laser Equipment Stimulus Package: Enormous Savings!

2009 has suddenly become a great year to invest in your business. Due to The Economic Stimulus Act and the Section 179 deduction, which has been extended through December 31^st, 2009, business’ purchasing power has been significantly increased when it comes to buying new laser equipment.

Business owners who acquire equipment for their business: machinery, computers, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. Taking the deduction in a single tax year is known by its section in the tax code, as a Section 179 deduction.

Under Section 179, businesses that spend less than $800,000 a year on qualified equipment may write-off up to $250,000 in 2009. The rules are designed for small companies, so the $250,000 deduction phases out when a business purchases more than $800,000 in one year. (Companies cannot write off more than their taxable income).

(Click Here for the Section 179)

How attractive? Please review the below examples to see how much you can save on new laser equipment purchases in 2009.

Basic Fiber Tower XP Example

Cost of Equipment:	$60,000
Section 179 Deduction if Purchases are $800,000+	-----------
(Dollar for Dollar phase out if over 800,000)	-----------
Section 179 Write-Off Amount:	$60,000
50% Bonus Depreciation	-----------
Regular First Year Depreciation Deduction	$60,000
Total First Year Deduction	$21,000
(Assuming a 35% Tax Bracket, Depreciation 5 years)
Lowered Cost of Equipment after Tax Savings	$39,000

Basic Titan Laser Cutting Example

Cost of Equipment:	$350,000
Section 178 Deduction if Purchases are $800,000+	-----------
(Dollar for Dollar phase out if over 800,000)	-----------
Section 179 Write-Off Amount:	$250,000
50% Bonus Depreciation	-----------
Regular First Year Depreciation Deduction	$250,000
Total First Year Deduction	$87,500
(Assuming a 35% Tax Bracket, Depreciation 5 years)
Lowered Cost of Equipment after Tax Savings	$262,500

In order to receive the tax break benefits, equipment needs to be purchased and in use in the 2009 calendar year. To help business meet these requirements, orders should be placed by the third quarter of this year to ensure there are no delays.

For more information, to receive a quote, or to place your order, please email or call 407-829-2613 today.