Tax law changes redefine accelerated depreciation.

The Jobs and Growth Tax Relief Reconciliation Act of 2003 allows businesses to deduct bonus depreciation equal to one-half of the cost of new equipment acquired after May 5, 2003. The bonus depreciation provisions also apply to land improvements, farm structures, interior commercial leasehold improvements, and other assets normally depreciable over 20 years or less.

When you compare the timing of tax deductions for equipment purchases now with that of just two years ago, it is clear that the accelerated depreciation of old has been revamped to more closely reflect the mindset of a generation accustomed to instant gratification. We want our deductions to match our purchases, and we want to pay later.

Two years ago, you could deduct just over 14 percent of the cost of most new manufacturing equipment in the year of acquisition. Now, this equipment will net you a …