New Small Business Bill Adds 2010 Tax Incentives

In late September, 2010 the Small Business Bill was signed into law. The bill includes an estimated $12 billion in tax incentives for small businesses. Chief among them are:

Section 179 Expensing. For qualified capital purchases in 2010 and 2011, taxpayers may expense (versus depreciate) up to $500,000 in new purchases. In addition, qualified leasehold investment property, restaurant property, and retail improvements may be expensed up to $250,000.

Bonus Depreciation. The bill extends the special 50% first-year bonus depreciation for property placed in service in 2010.

Cell Phone Bookkeeping. You no longer need to keep a log of business use of cell phones. The bill de-lists cell phones as “listed property” requiring less substantiation to qualify cell phone expense as a reasonable deduction.

The bill also includes many provisions to help stimulate lending money to small businesses so if you are looking to expand your business it pays to review the possibilities with your lender.