In the new Tax Act there are a number of business incentives and what some would euphemistically call loopholes. However, these loopholes can be advantageous for some.
They continue some of these things which would have expired at the end of 2009. These include the Research Credit, Indian Employment Credit, Railroad Track maintenance credit, rapid depreciation for car race tracks, rapid depreciation for business property on an Indian Reservation, enhanced charitable deduction for donation of school book inventory, DC and Puerto Rico Investments, and extension of the 100% gain on certain small business corporation stock. Today’s loophole is tomorrow’s tax shelter. Where you see the words “accelerated” or “rapid” depreciation, that means you can invest in something and get an early write-off. The word “credit” means you get to reduce your tax by a dollar for every dollar of credit. Again, this is a great thing.