The recently passed “Small Business Jobs Act of 2010” signed into law on Monday, September 27th allows for opportunity for sizable tax write offs for farmers in 2010 and 2011. In an effort to further jumpstart the economy, this Act raises the threshold on “Section 179 Expensing” from the current limit of $250,000 to $500,000 for tax years 2010 and 2011. The terms apply to new and used equipment. Previous law phased out the deductions as eligible purchases exceeded $800,000. The new ceiling for this phase-out has been raised to $2,000,000. The new Act also revived the 50 percent bonus depreciation for qualified property placed in service in 2010. These measures are meant to be an incentive for taxpayers to buy equipment.
Further information on the Act can be found at: