Tax bill boosts write-offs by 75K
By HME News Staff
Updated Mon June 30, 2003
WASHINGTON - If you've been putting off buying a new delivery van or making other investments in your company because of uncertain reimbursement or economic conditions, the “Jobs & Growth Tax Relief Reconciliation Act of 2003” aims to change your mind.
The new package of $350 billion in tax cuts - signed by President Bush in May - increases from $25,000 to $100,000 the amount a small business can expense instead of depreciate. That means an HME can make new investments in its business and write them off - up to $100,000 - in the year of acquisition.
“The incentive is you can reduce your taxes in the year you acquire it,” said business consultant Tom Pryor. “If you are looking to expand or update your company, this is a great opportunity, and that is why they included it. They are trying to encourage growth.”
The bill also includes $20 billion in Medicaid assistance to the states. With many states facing multi-billion dollar deficits - $20 billion is really only a drop in the bucket, but it could reduce what a state has to cut in healthcare spending, which in turn could help HMEs, Pryor said. HME
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