Can your business thrive if you’re using outdated technology? Probably not. You need current technology these days to engage with your clients and customers, assess sales trends and more efficiently handle everything from accounting to payroll. Thankfully, the American Taxpayer Relief Act of 2012 includes a hefty tax break for small businesses that invest in new technology. Here’s a brief look from BizTech Magazine at how this tax break works and how it can help your small business stay on top of the technology curve.

 

A big tax break

According to the American Taxpayer Relief Act, businesses are now able to write off as much as a quite notable $500,000 of new technology and equipment acquisitions in 2013. This could provide small businesses with the boost they need to more aggressively update their technology. Businesses, for example, might elect to upgrade their computer operating systems to Windows 8. Or perhaps they’ll make the move to Apple computers. Others might invest in automated bill paying or payroll software. These upgrades can make small businesses more efficient, and boost their odds of beating their competitors.

 

Retroactive

The benefits of the taxpayer relief act don’t end with just 2013, either. As BizTech Magazine reports, the act also retroactively boosts the amount that businesses can deduct for equipment and technology purchases made in 2012. The increase is a substantial one, too, from $139,000 to $500,000. This may again help the bottom line of businesses, allowing them to write off more of the equipment and technology acquisitions that they’ve previously done.

 

What it means

These higher deduction limits may come as good news to you. You know that your business needs good technology to succeed. The higher deduction limits can help you and your business obtain this tech without spending quite as much of your money. Once you’re armed with new tech and equipment? Now you have one more tool to help you succeed in today’s competitive business environment.