HIRE Act of 2010 Extends Section 179

The 2010 Hiring Incentive to Restore Employment Act (HIRE) package provides new incentives for hiring and retaining workers along with a one year extension of the enhanced Code Sec 179 expensing limits.

CODE SEC. 179 EXPENSING
For 2009, the maximum Code Sec. 179 deduction was $250,000, and the phase-out limit for qualifying property purchased during the year began at $800,000. First introduced in 2008, enhanced Code Sec. 179 expensing expired on December 31, 2009. Without legislation, Code Sec. 179 expensing for 2010 is limited to $125,000, with a $500,000 cap (both adjusted for inflation). The HIRE Act extends enhanced Code Sec. 179 expensing, at the $250,000/$800,000 threshold levels, through December 31, 2010.

The HIRE Act does not extend bonus depreciation which expired December 31, 2009.

Consult your tax advisor for more information about the HIRE Act and Section 179 Deductions as they apply to you.