Shelton Machinery is reminding customers that the HIRE ACT has been enacted into law, extending the American Recovery and Reinvestment Act’s increased Section 179 benefits to small businesses. The incentives will remain throughout 2010 before being reduced substantially in 2011.

Under the provisions of the HIRE ACT, Section 179 expensing has been increased to a maximum of $250,000 for capital equipment purchases ordered and placed in service in 2010. To qualify for the write-off, a small business is defined as purchasing less than $800,000 in equipment over the course of the year. In 2011, the terms will change to apply only to those businesses purchasing less than $500,000 in equipment and the total maximum deduction will drop to $125,000.

"The government has taken action to encourage small businesses to invest in ways that will allow them to capitalize on the rebounding economy," says Brian Papke, president of Mazak Corporation. "This provides significant opportunity for manufacturers to embrace refocusing, rediscovering and reinventing their processes, a concept we have supported heavily over the past year."

At present, 50% bonus depreciation does not apply to 2010 new equipment purchases.

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