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What does the Small Business Jobs Acts 2010 mean for your food business
Posted: Oct 21, 2010 by | 0 comments
Let’s be frank. This is a reactivation of the same Bill from last year (under a different name) and similar to other measures put in place temporarily since 2002.
This bill does what it says – gives business a 50% tax write-off immediately in the current year when making capital expenditures.
For example, a $200,000 software purchase would allow a company to expense $100,000 this year – while the remaining $100,000 follows the normal rules.
The goal of the Bill is to stimulate investment. We find your average CFO of your average food company is focused on tax reduction/elimination. Accelerated depreciation is a great way to do this but is scrutinized by tax authorities. This Bill promotes it.
This immediate tax benefit shortens all ROI calculation results. Normally ERP expenditures can range from a 3 year write-off to amortizing over the life of the software.
How this bill might help you is by speeding up certain investment decisions.
The big deal here is that your company could immediately recoup a huge chunk of their investment in tax savings. One caveat is that the asset purchased has to be in production by 2010, so you’d have to act pretty fast to take advantage of this.
Glen is ultimately a numbers guy. As CFO for IndustryBuilt, he is responsible for keeping the company focused on timely reporting, solid accounting, stringent controls and compliances and creating business systems. He has been able to keep the company in growth mode while many other software companies were crippled from the recession. When he’s not doing all that… he’s running after his three toddlers and loving family life.
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