American Taxpayer Relief Act Impact on Camps

Impact on Camps as Small Businesses

When the American Taxpayer Relief Act (ATRA) was signed into law by President Obama on January 2, 2013 it included a number of extensions of small businesses tax incentives that could be utilized by camps. The tax incentives include:

  • Section 179 Deduction. Permits small businesses to deduct the cost of certain new and used property placed in service for the year rather than depreciate those costs over time. The new law extends the maximum deduction to $500,000 for the 2012 and 2013 tax years for companies with under $2 million in qualifying capital expenditures.
  • Bonus Depreciation. Enables small businesses to recover the costs of qualified new equipment faster than the ordinary schedule by permitting the depreciation of 50 percent of the cost in the first year. The provision was set to expire at the end of 2012, but has been extended through the end of 2013 (and 2014 for certain types of property).
  • Work Opportunity Tax Credit. Extends through 2013 the tax credits for employers who hire military veterans or individuals from underserved communities that have faced barriers to employment.