The American Recovery and Reinvestment Act of 2009, signed into law by President Obama on February 17, 2009, included several provisions related to fixed assets.  These include extension of 168(k) bonus depreciation, extension of Section 179 increases, and new investment tax credits.  In addition, the Canadian government has made some changes to their fixed asset regulations.

A special FAS update, version 2009.1.1, is planned to be available to download from FAS SupportPlus Online in early April to address the following items.

American Recovery and Reinvestment Act of 2009

·         Extension of 168 Allowance

The bill extends the 168 allowance for capital expenditures that are placed into service in 2009.  For certain property with longer production periods the date is extended to 12/31/2010.

·         Extension of Section 179 Increase

Last year, Congress temporarily increased the amount that small businesses could write-off for capital expenditures incurred in 2008 to $250,000 and increased the phase-out threshold for 2008 to $800,000.  In the American Recovery and Reinvestment Act of 2009, the temporary increases have been extended for capital expenditures incurred in 2009.

·         New Investment Tax Credits

-        Election to claim ITC in lieu of production credit for sources of energy that produce electric such as (but not limited to) solar, hydropower, open-loop biomass, etc.

-        New Advanced Energy Investment Credit is established for facilities engaged in the manufacture of advanced energy property.

-        Removal of dollar limit caps on energy credits from wind, solar and geothermal sources

Canadian Tax Law Changes

·         The T2S8 module was updated to change several existing tax classes in order to comply with The 2008 Budget. Now, for assets placed into service in 2009, you will find a new class for 100% expensing on computers.

In order to install this special update you must already be using FAS version 2009.1.

An email will be sent to all customers with a current SupportPlus support and maintenance agreeement as soon as this update is available.  Please check www.sagefas.com/update periodically for further details on this update.

Thanks,

Kelly