Group Touts Section 179 as 'Magic Bullet' to Lift Equipment Sales

http://www.monitordaily.com/app_enews/news.asp?news_ID=21926

Group Touts Section 179 as 'Magic Bullet' to Lift Equipment Sales

Finance experts say Section 179 of the Economic Stimulus Act has led to increased sales among equipment manufacturers as customers reap the benefits of the new tax deduction.

The economic stimulus package dictates that in 2008 businesses can write off twice as much equipment acquisition costs as an expense rather than depreciating the purchase over several years, with qualification extending to almost all tangible corporate property. If the company exceeds the $250,000 cap, the law features a provisional depreciation bonus that lets it write off up to half of the purchase in the first year, on top of the regular depreciation allowance.

And according to financial professionals cited by the informational group Section179.Org, equipment manufacturers, distributors, and resellers have experienced a boost in sales since the introduction of the Stimulus Act.

The group has launched a website to educate those in the industry and is urging its constituents to promote the benefits of Section 179 as a way of boosting sales. Group spokesperson Chris Fletcher went so far as to call Section 179 a "magic bullet to lift equipment sales."

"Because the Economic Stimulus Act of 2008 greatly enhanced Section 179, it's the perfect time for any business to buy new equipment" said Fletcher. "This means that everyone involved in any kind of business equipment - from the manufacturers to the distributors to the sales force - should make certain their client base knows all about section 179".