The measure, signed into law on Sept. 27, will not only spur lending to small businesses to the tune of $30 billion, but also will provide $12 billion in tax breaks.
One of these tax breaks increases the amount of investments businesses are able to write off to $500,000 — twice the previous limit. With this legislation, small businesses that invest in new technologies can reap efficiencies that immediately translate to a strong return on investment (ROI).
It is reality that small businesses do not have access to the resources that large businesses and federal government agencies have when making technology decisions. That is one of the reasons why small businesses have been less bullish about expected IT investments compared to their larger counterparts during the budding economic recovery. We see in the findings of our ongoing research, the CDW IT Monitor, a bimonthly indicator that has tracked the direction and momentum of the U.S. IT marketplace since late 2007.
However, as we head toward the end of the year, small business owners are beginning to show more confidence in their ability to make technology investments that will help their businesses evolve and become more efficient. In fact, the latest CDW IT Monitor reveals that 26% of IT decision makers at small businesses think budgets will increase in the next six months, a 3% increase from this time last year.
With small businesses more confident about anticipated IT budgets, the new legislation provides them with an extra incentive to refresh and update technology to drive increasing business efficiency and productivity to take advantage of the slowly emerging economic recovery.