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By: WAXIE Editorial Staff  |  June 30th, 2011

Temporary law can mean HUGE tax savings for 2011 equipment buyers

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (TRJA) extended and expanded the depreciation bonus created in 2008. For 2011, it’s an unprecedented 100 percent; for 2012, it’s 50 percent.

Assume you buy and place in service in 2011 a new NSS Champ 2929 ride-on scrubber costing $15,641. Using bonus depreciation, you can “write off” the full amount this year, reducing your taxable income by $15,641. If you’re in the 35 percent tax bracket, that can reduce your 2011 tax bill by $5,474.