Contractor’s Toolbox – Don’t wait! Time’s running out on certain tax breaks
Abstract: In the wake of the American Recovery and Reinvestment Act of 2009 (ARRA), contractors stand to benefit from not only spending initiatives for infrastructure and other construction projects, but also several tax incentives. These include a temporary extension of the 50% bonus depreciation and the enhanced Section 179 expensing election. Contractors planning any asset expenditures should take an immediate look at these incentives, but also keep in mind the bonding and banking effect of any major asset acquisition, so that liquidity and leverage ratios don’t suffer.