The Section 179 Deduction

News Alert: February 25, 2011 - http://www.section179.org/

Two congressional acts affecting Section 179 in a positive way for this 2011 tax year passed in late 2010 (The Tax Relief Act of 2010 and The Jobs Act of 2010).The newest changes are as follows:

The Section 179 Deduction limit was increased to $500,000. The total amount of equipment that can be purchased was increased to $2 million. This includes most new and used capital equipment, and also includes software.

The "Bonus Depreciation" was increased to 100% on qualified assets. However, this can be taken on new equipment only. When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation - unless the business has no taxable profit in 2011. Also, many businesses find Section 179 Qualified Financing to be an attractive option in 2011.

First "Dreamliner" to be Delivered in August or September.

Bloomberg News (5/26, Cooper, Matsuda) reported Boeing "will deliver the first 787 plane to initial customer All Nippon Airways Co. in August or September, ending more than three years of delays for the new aircraft." The news comes as Boeing and the airline plan "test flights in Japan in the week beginning July 4 ahead of the handover, they said in a joint statement in Tokyo today."

Foxconn Explosion Highlights Risks of Global Manufacturing Strategy.

The AP (5/24, McDonald) reports, "An explosion at one of two factories that make Apple's new iPad 2 highlights the risks of a global manufacturing strategy that has cut costs but concentrates production in a few locations." The lethal blast at a Foxconn Technology Group plant in China last week could potentially costApple 2.8 million units at a time when the company is already struggling to meet demand for the product.

Although experts said that the real impact of the explosion will be determined by how quickly the factory is able to get back up and running, they noted "the disaster emphasized the pitfalls for companies whose global sales depend on one or two factories." The issue has already been at the forefront in the manufacturing industry since the disasters in Japan disrupted a substantial part of the auto manufacturing supply chain. "Industry analysts said the shock was likely to prompt manufacturers to reconsider supply strategies."

Krugman Optimistic About US Manufacturing Sector. Paul Krugman, in his column for the New York Times (5/20, Subscription Publication) , says that "by the middle years of the last decade," manufacturing, "once America's greatest strength, seemed to be in terminal decline," but "that may be changing. Manufacturing is one of the bright spots of a generally disappointing recovery, and there are signs -- preliminary, but hopeful, nonetheless -- that a sustained comeback may be under way."

DOE Awards Companies $4.2 Million to Develop Energy Efficient Lighting.

In its "Green Space" blog, the Los Angeles Times (6/8, Carpenter) reports that "three California companies will receive $4.2 million from the US Department of Energy to fund the development of high-efficiency lighting. Soraa Inc., and Cree Inc., both in Goleta, along with Philips Lumileds Lighting Company in San

Jose, were awarded the money to accelerate the deployment of technologies such as light-emitting diodes, or LEDs." Energy Secretary Steven Chu said of the awards, "These investments in cutting-edge lighting technologies will support American innovation, create new manufacturing jobs for US workers and help ensure that the United States leads the world in this rapidly evolving industry," adding, "These next-generation lighting technologies have the potential to transform the way we light our homes and businesses and generate enormous energy and cost savings for families and businesses across the country." The blog points out that the grants come ahead of a federally-mandated phase-out of incandescent light bulbs.

Federal Grants Aim To Help People Develop Critical Technical Skills.

The Salt Lake Tribune (5/4, Gorrell) reports, "Federal grants totaling $240 million are available to organizations that help people develop the technical skills necessary to get a job." The grants will be available from

update workers' current skills or help them acquire new ones 'so they can enter career pathways leading to higher paying jobs.' " Secretary of Labor Hilda Solis said, "These grants will create important opportunities for those who may still be searching for work after many months of unemployment." Information on the grants and forms to apply for them are available at the department's website.

Selway recommended "Short" Video. Check this fun link out! http://www.dptechnology.com/en/business_profiles/vanderhorst/