The Jobs Act of 2010 allows businesses to write-off up to $500,000 of qualified capital expenditures. Also, businesses that aren’t profitable this year can use 100% Bonus Depreciation on new equipment and carry-forward the loss to future hopefully profitable years. This deduction is known as Section 179.
With Section 179 your business can deduct the full purchase price of qualifying equipment for the current tax year instead of depreciating it over time. The equipment must be purchased and put into use the current tax year. This can give you a substantial tax savings versus the old yearly depreciation method.
This should mean a substantial boost to your bottom line this year. To get the deduction for tax year 2011, you have to make the equipment purchase before then end of the year.
Qualifying Equipment includes: Equipment purchased for general business use like field equipment, computer hardware and software like Numbers Cruncher and National Standard Price Guide, and general office equipment.
You can get more information at Section 179.org and on the IRS site.