Legislation signed into law on May 25, 2007 increases the maximum amount that a taxpayer can deduct annually as a Sec. 179 expense from $100,000
to $125,000 for tax years beginning after 2006. It also increases the
$400,000 phase-out threshold amount to $500,000 for tax years beginning after 2006. These amounts are inflation adjusted beginning in 2008 and
before 2011. This allows taxpayers to continue to deduct the larger amounts for business assets through 2010. After 2010, the maximum deduction will revert back to $25,000.

The same legislation extended a taxpayer's ability to revoke a Sec. 179 expense election, and any specification contained in the election, for one additional year, to any tax year beginning before Jan. 1, 2011. It also
extended the inclusion of off-the-shelf computer software in the definition
of Code Sec. 179 property for one additional year through 2010.