To provide relief to business owners and promote business growth, the United States government recently amended tax laws. The Jobs and Growth Tax Relief Reconciliation Act of 2003 and the American Jobs Creation Act of 2004 provide business owners additional tax deduction opportunities through 2008. The following outlines the tax benefits and the potential impact on your tax returns.

Increase in Tax Code		Consider the Following
Section 179 Deduction		finance lease example:
Under Internal Revenue Code Section 179, equipment acquisitions can be expensed (deducted from taxable income) if placed in service by December 31, 2008. Using Section 179, the amount of investment in equipment that may be immediately deducted for tax year 2008 is $250,000.		Cost of equipment	$ 250,000
		1st year write-offs
		Section 179	$ 250,000
		Total deduction in 1st year	$ 250,000
		Marginal tax rate assumed 35%	$ 87,500
		Bottom line equipment cost after tax savings	$ 162,500
		Tax savings are assuming a 35% tax bracket.
Property eligible for the Section 179 Deduction:		Please consult your tax advisor. Your equipment acquisition may have significant tax advantages. This is an example and each business has unique depreciation and tax opportunities
* Tangible property depreciated under MACRS with a recovery period of 20 years or less.
* Off-the-shelf computer software (depreciated under Section 167(f)(1).
The equipment must be acquired for use in active conduct of a trade or business.