If you missed out on tax incentives in 2010, no worries; you can take advantage of the new tax law for 2011.

On September 27, President Obama signed into law the Small Business Jobs Act of 2010. The act is designed to encourage business investment. Among other things the new law doubles the Section 179 expense deduction for qualifying equipment that is purchased or financed. This is great news for businesses looking to procure IT data center equipment sooner rather than later. Most businesses would love to accelerate depreciation.

More importantly, by putting in place a capital equipment lease, a company can take the Section 179 Deduction without paying the full amount this year. In other words, taking the deduction in 2011 enables you to create significant tax savings while stretching out payment over time via a lease. This tax savings can add dramatically to the bottom line.

To qualify for the Section 179 Deduction in 2011, equipment purchased must be purchased and placed into service before January 1, 2012.  As much as $500,000 may be deducted, and the purchase amount is capped at $2,000,000. There is a dollar-for-dollar phase-out over $2 million.