Stimulus Bill Tax Incentives
The American Recovery and Re-Investment Act (ARRA) contained many provisions that can help large and small businesses.The provisions are general tax incentives, and incentives specifically designed for energy investments.
ARRA General Tax Incentives
Included in the new law are: a continuation of the 50 percent bonus depreciation allowance for acquisitions of qualifying business property, an election to expense up to $250,000 of the cost of qualifying property under Code Section 179, and an option to carry a loss back for up to five years instead of the usual two years. These changes will lower tax liabilities for businesses making new investments this year and could result in tax refunds for businesses that have been hard-hit by the recent recession.
ARRA Energy Investment Incentives
The eligibility date for "placed in service" renewable energy facilities, such as wind, biomass, geothermal, and hydrokinetic (among others), was extended to Dec. 31 2012 or 2013. Tax credit limitations were also extended or removed for such investments. Alternative fuel vehicle refueling property credits were increased as well. Homeowners (and some small businesses) should be aware of the increased energy tax credits for home improvements as well as electric vehicle related credits.
More Information
Energy Incentives for Businesses in the ARRA
Energy Incentives for Individuals in the ARRA