1.305 -Deduction for Excess First-Year Depreciation

Item	Description	FY2008	FY2009	FY2010
1.305	Deduction for Excess First-Year Depreciation Individuals or investors in a trade or business may elect to expense certain business assets purchased during the taxable year up to a maximum amount of $125,000. For taxpayers whose investment in eligible assets exceeds $500,000 in the year, the $125,000 ceiling is reduced by $1 for each dollar of investment above $500,000. Any remaining cost must be depreciated according to MACRS, as described in the preceding item. The immediate deduction is a tax expenditure, resulting in a deferral of tax or an interest-free loan. Origin: IRC S. 179 Estimate: $17.8	30.1	23.2	17.8

Key:

ORIGIN
IRC	Federal Internal Revenue Code (26 U.S.C.)
U.S.C	United States Code
M.G.L.	Massachusetts General Laws
Rev. Rul.; C.B.	Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES	All estimates are in $ millions.