A move to make equipment depreciation benefits in Section 179 of the Internal Revenue Service (IRS) tax code permanent for small business owners is included in the "framework" agreement for extending individual tax breaks being considered by the U.S. government, according to analyst Jeff Johnson of Robert W. Baird.
If approved, the annual write-off caps and thresholds would be made permanent at $125,000 and $500,000, respectively, beginning in 2012. The Small Business Jobs Act passed in September increased the cap and threshold limits to $500,000 and $2 million for 2010 and 2011, but in 2012 these caps and thresholds are scheduled to fall back to $25,000 and $200,000, respectively.
If the Section 179 limits and thresholds are made permanent at $125,000 and $500,000, this would be a "long-term positive" for the dental equipment market, Johnson noted.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year.
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