Stimulus Package For Equipment Purchases Good Through 2011

There’s just a little more than a year for operators to reap the benefits of the Small Business Jobs and Credit Act of 2010. The bill, signed by President Obama at the end of September, gives restaurants an extra incentive to purchase new foodservice equipment as long as the purchase is completed during the 2010 or 2011 tax years. Operators, as well as manufacturers, can write off investments in new capital expenditures immediately, up to a limit of $500,000, rather than having to depreciate the expense slowly over a number of years.

Members of the National Restaurant Association welcomed the news. “Now that President Obama has signed the Small Business Jobs and Credit Act into law, it’s a good time to look at your capital improvement plan,” the Association told its members. The North American Association of Food Equipment Manufacturers is urging its members to make sure their customers understand the value and details of this short-term opportunity to expense new equipment in the year it is purchased.