New Restaurant Equipment Depreciation Allowance

If you have already purchased restaurant equipment in 2009, or are planning on doing so before the year is up, make sure you get your accountant to take a special 50% depreciation allowance for all equipment that is purchased, installed and used by December 31st.

This tax provision was extended by President Obama’s stimulus bill from 2008, and it provides an excellent benefit for restaurants that need to purchase new equipment but are tight on cash in a struggling economy. Read the rest of this entry »

School Food Service Stimulus Package

In addition to the numerous small business grants available, the federal government has delivered a $100 million dollar food service equipment stimulus package targeted directly at public and private schools which participate in the National School Lunch Program (NSLP) and qualify (at the building level*) with a 50% or more participation in a free and reduced lunch program.

Funds have been allocated to each state education department. Funds vary by state and range from $215,000 to $12 million. The grants are competitive which means preparation is important. The window of opportunity is very narrow so this is an actionable item. The funds are intended to be dispersed within three months.

Items the schools may wish to consider include the repair, replacement or addition of walk-in coolers and freezers. Some of the reasons these qualify include: improving food safety, reducing operating costs translating into energy savings, increased storage capacity to handle expanded breakfast, lunch and snack programs. The link below contains detailed information regarding all qualifying food service equipment. A general rule of thumb is that the equipment must support the reimbursable meal program and not specifically targeted to an ala carte program.

Here is a link to the National School Nutrition Association website where school food service directors can find the most current USDA issued communication related to this process. There are links to each individual state where the food service director can view the requirements and download the required forms.

School food service directors are welcome to call on U.S. Cooler to assist with specification, sizing etc. Contact information is easily accessed via our interactive territory map.

*Participation is measured at the building level rather than the District Level. If the equipment is for a central kitchen, all buildings served by the central kitchen are listed and included in the calculation.