Updated for 2010, this guide covers how to estimate, warranties and quantity discounts, an estimate form, design and engineering fees, service and installation hourly rates, a letter footage chart, and ...
The American Recovery and Reinvestment Act of 2009 can help you if you’re considering buying capital assets.
By Susan Conner
Many U.S. citizens remember the Economic Stimulus Act of 2008 because they received a check in the mail. Businesses benefitted, also, and the same benefits were extended through this year.
The federal Economic Stimulus Act of 2008, enacted in February 2008, included a 50% bonus-depreciation provision for equipment purchased and placed in service in 2008. This provision was extended retroactively to the entire 2009 tax year under the same terms by the American Recovery and Reinvestment Act of 2009 (ARRA), which was enacted in February 2009.
The benefits of this program can be valuable for companies that may be considering purchasing capital equipment. So, ST talked with Michael C. Meidel, CPA , and partner in Peoria-IL-based Clifton Gunderson LLP, and Darrin Friskney, director of Watchfire Digital Outdoor (Indianapolis, IN), to update their financial insights published in ST’s November 2008 issue (page 109).
Friskney said ARRA has been a life preserver: “When the changes occurred last year, we didn’t know their impact. Over a year later, we’ve experienced positive results – in fact, a flurry of activity. Some tried to get orders in before the end of 2008 [and, remember, there’s typically a six to eight-week lag time from the query to the purchase]. From a third to a half of buyers acknowledged the stimulus as a factor in their purchases.”
Burkhart Advertising (South Bend, IN), an OOH company with more than 3,500 billboards in northern Indiana, capitalized on equipment-purchase savings last year by buying a 19mm, 14 x 48-ft. billboard from Watchfire Digital Outdoor. Rob Miller, Burkhart’s executive VP, said, “Picture clarity and service were certainly two deciding factors in choosing Watchfire, but we’re also pleasantly surprised by the endless number of things we can do with our board, from self-promotions and community events to challenging the creative spectrum with our customers. They love it. And we love the added revenue, which actually increased by more than 800% in one of our locations.”
So far, many advertisers, which range from credit unions, medical institutions, retailers and television stations, have bought time on the board.
The benefits
The accelerated depreciation schedule definitely helps those who would rather invest income in new equipment than pay it in taxes. Meidel had reminded us last year, “In these challenging economic times, these incentives can free up sizeable resources to help an operator grow his business.”