The Small Business Jobs Act of 2010 (the “Act”), signed into law by President Obama on September 24, 2010, includes significant tax breaks for businesses. The following summary highlights some of the key tax provisions in the Act.

Most taxpayers are familiar with Code Section 179 which allows the expensing of qualifying property that would otherwise have to be capitalized and depreciated over time. Qualifying property is generally defined as depreciable tangible personal property purchased for use in the active conduct of a trade or business.

Under prior law, the amount that could be expensed under Code Section 179 for the 2010 tax year was limited to $250,000, and that amount would be phased-out as qualifying property placed in service during the year exceeded $800,000. Furthermore, without the passage of the Act, beginning in 2011, the maximum amount that could be expensed under Code Section 179 would revert to $25,000, and that amount would begin to phase-out at $200,000.