Stuart Isett for The New York Times“This year,” said Paul Fichter, “I won’t have a tax liability.”

Today’s Question

What small-business owners think.

We’ve just published a small-business conversation with Paul Fichter, a manufacturer who is bringing some of his work back from China. Mr. Fichter’s company, Taphandles, makes beer-marketing products. He recently signed a lease to start manufacturing some of those products in Woodinville, Wash., where he expects to employ 150 workers by 2015. Mr. Fichter’s decision comports with a trend noted in a Boston Consulting Group analysis released last week that found that manufacturing outsourced to China has begun to return to the United States as the economic advantages have started to shift.

In the interview, Adriana Gardella, asked Mr. Fichter how he was financing his expansion. “Almost entirely with the tax savings we’re realizing because of the law Congress passed at the end of 2010, which allows capital investments to be deducted immediately, not over time,” he responded. “Last year, my tax liability was more than $500,000. This year, because of instant deductibility, I won’t have a tax liability. It’s an extremely important deduction. Normally, taxes are pretty punitive on growing businesses.”

Is it possible the government did something right? Has your business taken advantage of the same deduction?

Article source: http://feeds.nytimes.com/click.phdo?i=5aa35401fd8101a196353afca61f3933