Wednesday, September 8, 2010

President Widely Expected to Propose 100% Writeoff for Machinery & Equipment Through 2011

Today, Wednesday September 8, the President is expected to propose a business stimulus package to help lift the economy out of its doldrums. It is widely anticipated that he will propose allowing businesses to expense 100% of the cost of machinery and equipment acquired on or after Sept. 8, 2010 and before Jan. 1, 2012. Additionally, reports suggest that he also will propose liberalizing the research tax credit and making the credit permanent.

The timing for Congressional consideration of these proposals is uncertain. The legislative calendar before Congress breaks again for the fall elections will be brief, and the other tax legislation it must deal before year-end includes extender legislation and the looming EGTRRA sunsets. And when Congress returns next week, the Senate is slated to once again take up the H.R. 5297, the “Small Business Jobs Act,” which passed the House on June 15 and has languished in the Senate since then.

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