TriCom Technical Services

IT Write-Off for 2011?

In IT news on September 9, 2010 at 7:12 pm

If you haven’t yet heard, the president has made some new proposals this week to boost the U.S. economy – one in particular to allow businesses to write off all of the investment they do in 2011.

“The proposal would allow businesses to deduct from their taxes through 2011 the full value of new equipment purchase, from computers to utility generators, to increase demand for goods and create jobs,” according to the New York Times.

It currently has an ambiguous start date, some saying the tax break will begin near the end of the 2011 year, and some saying it will be retroactive – beginning this month to encompass all of 2011.

What does this mean for I.T. professionals?

“‘The fact that the president has pitched this tax break may be enough to prompt some IT managers to take a second look at some of their purchase plans,’ said Joseph Pucciarelli, program director of technology financial and executive strategies at IDC.” It … “‘will cause a reduction in discretionary IT spending, equipment and system upgrades for the balance of 2010,'” – ComputerWorld.com

Pucciarelli believes the approved proposal will cause borderline projects to be deferred and estimates it could increase IT department spending by 7 to 12 per cent.

Maybe it’s time to invest in I.T. hardware stocks?

At the moment, Congress is yet to approve this proposal.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: