Incentives for Capital Investment Under the Small Business Jobs Act

October 12, 2010Articles The Legal Intelligencer
The Small Business Jobs Act of 2010, signed into law on Sept. 27, intends to stimulate capital investment with the ultimate objective to create manufacturing and construction jobs. The act provides several incentives for business to make capital investments in 2010, including extending the additional “bonus” first-year depreciation deduction on the purchase of new depreciable property and the expanded ability of small and midsized businesses to fully deduct the cost of eligible new property. Though the extension of the bonus depreciation rules and the expansion of the ability to expense certain asset purchases under Section 179 have been effective measures in prior tax stimulus legislation, the impact of these stimulus measures is yet to be seen in the current environment.