On December 18, 2015, the President signed the "Protecting Americans from Tax Hikes Act of 2015" (PATH Act) passed by Congress. While the PATH Act has far reaching benefits for consumers and business, there are special advantages to fleet owners. For the first time in many years, the government extended these tax breaks for several years which will allow businesses to plan ahead and capture these valuable tax benefits.
For the smaller fleet owner that purchases or finances equipment, Section 179 of the IRS tax code can be very helpful. It is a great tax savings tool as it allows you to deduct the 100% of the purchase price of your equipment from your gross income, up to a limit of $500,000 annually for the years 2015, 2016 and 2017. This benefit is targeted to the small business owner as it is phased out on a dollar-for-dollar basis beginning at $2 million in annual qualifying equipment purchases and is completely eliminated above $2.5 million. Section 179 was extended permanently (or at least until further notice).
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