Incentives make capital investments more affordable

Bonus depreciation

The percentage has increased from 50 percent to 100 percent for qualifying property placed in service after September 8, 2010, and before January 12, 2012.

Layering opportunity

In addition to federal tax write-offs that help reduce the cost of capital investments, many businesses also can benefit from state and local incentive programs in the 2011 tax year.

Opting out

No longer do businesses need to take 100 percent depreciation to opt out. The IRS now permits a step-down election from 100 percent to 50 percent bonus depreciation.

Expensing write-offs

A business may immediately deduct, as a Section 179 expense, up to $500,000 of both new and used business property placed in service during the tax year.