The act will increase the maximum dollar amount that can be expensed by a contractor from $25,000 to $100,000 for property placed in service in 2003, 2004, and 2005. This amount, as well as the increased phase-out level of the deductible amount (which doubles to $400,000 for the years in question), will be indexed to inflation.
The act also defines off-the-shelf computer software placed in service in 2003, 2004, and 2005 as qualifying property.
Also, the final legislation increases the first year depreciation allowance to 50 percent from 30 percent for property acquired after May 5, 2003, and before Jan. 1, 2005.
Publication date: 06/02/2003