Clifton Gunderson gives year-end tax advice

Clifton Gunderson has released a list of the 10 most important tax benefits companies should review by the end of the year.
A 100 percent bonus depreciation is available on qualified investments in new equipment and tangible property in 2011. A 50 percent rate will be in effect for equipment purchases in 2012.
Temporarily higher expensing limits for Section 179 were set by the Small Business Jobs Act of 2010. The current limits are $500,000 for expensing and $2 million for investments. Next year, those limits will be $139,000 and $560,000, respectively.
Another temporary rule allows up to $250,000 of qualified real property to be treated as Section 179 property. That won’t likely be the case next year.
Companies that have conducted qualified research to improve a product in 2011 can apply for the R&D tax credit, which may not be renewed in 2012.
The Work Opportunity Tax Credit benefits employers who have hired a new employee that is a veteran, ex-felon or is disabled. This credit ends in 2012, except for the Returning Heroes and Wounded Warriors tax credits. Those provide credits of up to $5,600 for hiring unemployed veterans. There are additional funds provided to those who hire a long-term unemployed and disabled veteran.
Hiring Incentives to Restore Employment provides an incentive to companies that hire qualified workers between Feb. 3, 2010 and Jan. 1, 2011—and keep them. The Domestic Production Activity Deduction could apply to almost all manufacturing businesses. It offers a maximum deduction of 9 percent of income from qualified production activities.
A health care tax credit of up to 35 percent of premium costs benefits companies with fewer than 25 employees. This credit will stick around—and increase in 2014.
The Renewable Energy Grant Program provides cash grants for new renewable energy projects or start-up companies.
More information about the tax credits is available at

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