WASHINGTON — President Obama recently signed legislation reinstating and extending tax benefits for electronics companies.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, also known as the “Tax Cuts Bill,” reinstates research and development tax credits for 2010 and extends them through 2011. The bill also provides 100% bonus depreciation for investments placed in service between Sept. 8, 2010, and Dec. 31, 2011.

The enhanced bonus depreciation benefit expands the benefit from recovering 50% of the cost of capital expenditures to 100% for investments placed in service during the specified period. For investments placed in service after Dec. 31, 2011, and through Dec. 31, 2012, the bill extends the previous 50% bonus depreciation.

The IPC trade group applauded the move. “IPC supported these important tax provisions and we’re glad to see our efforts pay off for US electronics manufacturers,” the company said.

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