IT IS TIME TO MOVE ON YEAR END TAX ADVANTAGES!

You do not want to let the current Tax Breaks pass you by, allow Mazuma Capital to show you how to take advantage of these Tax Breaks in 2010.

Code Section 179 Expensing-
A qualifying taxpayer can choose to treat certain property as an expense and deduct it in the year the property is put into service, rather than depreciating it over several years.  The Small Business Jobs Act of 2010 increases the maximum deduction an eligible taxpayer may elect to claim to $500,000.  The qualifying property cap has also been raised to $2 million and will phase out, dollar-for-dollar, until the qualifying property cost exceeds $2.5 million.
Bonus Depreciation you don’t want to miss!
The Act also extends, through December 31, 2010.  This means you may take a 50% first year bonus depreciation deduction for qualifying property purchased and placed into service in 2010.  The real bonus- the depreciation deduction can be used in addition to the Section 179 deduction.
Now, more than ever, the financing of your equipment should be top of mind.  Contact Mazuma today and see how equipment financing can be a powerful tool for your business.
Mazuma Capital specializes in providing customized equipment lease financing solutions to businesses. Mazuma Capital is committed to delivering superior service and competitive products at the lowest possible cost. We work with companies of all sizes across all industries to craft custom leasing solutions. From short economic useful life equipment such as telephony and computer systems to vital revenue generating equipment such as heavy machinery and medical equipment.
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Fed is Poised to Allow Healthy Banks to Increase Dividend Payments

The Federal Reserve is poised to allow healthy banks to increase dividend payments for the first time since the financial crisis, an anxiously awaited set of instructions that could provide a boost to bank stocks.
According to people familiar with the matter, regulators as soon as next week are expected to give guidance outlining the standards banks must meet to increase dividend payments. The Fed is expected to take a conservative approach that would require banks to demonstrate their ability to meet tough new international capital standards and any requirements stemming from the U.S. financial-regulatory overhaul.
Many U.S. banks are itching to boost payments to shareholders, citing improved profits, because they have long relied on a steady stream of dividends to lure investors. But they have been in a holding pattern as regulators across the globe hashed out new rules requiring banks to hold more capital as a buffer against future losses. Moreover, in the wake of the crisis, regulators have closely scrutinized banks' use of capital, essentially freezing their ability to increase dividends.
The Fed isn't expected to approve dividend payments en masse but will look at an individual institution's ability to meet the criteria it outlines, according to people familiar with the matter. It is likely, however, to give approvals in batches within the same quarter, to avoid putting any one firm at a competitive disadvantage.
A big part of the Fed's thinking are lessons learned from Japan, where prolonged uncertainty about the health of Japanese banks stymied that country's economic recovery. Regulators want healthy banks to get credit from the markets for increasing their capital bases.
Some banking analysts said allowing firms to increase dividends would telegraph to the markets that the financial sector is continuing to stabilize. "It signals that the health of the system has improved and will continue to improve going forward," said Todd Hagerman, an analyst with Collins Stewart.

Wells Fargo & Co. Chief Financial Officer Howard Atkins said Thursday that returning capital to investors is a "high priority" for the fourth-largest U.S. bank in assets once regulators approve doing so.

Wells Fargo shrank its quarterly payout by 85% last year. Citigroup Inc. hasn't paid a quarterly dividend since February 2009. Regulators allowed J.P. Morgan Chase & Co., Goldman Sachs Group Inc. and some other financial firms to buy back their own stock recently, suggesting federal officials were softening their resistance to dividend increases.

James Dimon, CEO of J.P. Morgan Chase, said recently on an earnings conference call that he hoped the bank could boost dividend payments in the first quarter of 2011.

Dividend payments are especially important for banks now that the financial industry's outlook is clouded by the sluggish economy, toughened regulation and looming capital requirements. Despite rebounding profits, a big-bank stock index from Keefe, Bruyette & Woods Inc. is up 11.6% so far this year after Thursday's rally, surpassing the Dow Jones Industrial Average's gain of 9.7%.
While the banks were waiting for the green light to restore their payouts, other companies have been boosting dividends in recent months, making their shares more attractive, especially given the slow growth in the economy. Financials on average yielded 4.4% in 2008, making them one of the highest-yielding sectors, according to Standard & Poor's. Now they yield 1.1%, making them the second-lowest yielding sector in the market, according to S&P.

Only a handful of banks are expected to meet the Fed's test, said Frederick Cannon, co-director of research at KBW. Among those with strong enough capital ratios are J.P. Morgan Chase, US Bancorp, State Street Corp. and Bank of New York Mellon Corp., he said.

Banks, nonetheless, are unlikely to return to precrisis payout ratios, which in some cases reached 50% of earnings. Analysts said banks are more likely to return to 5% to 10% levels for the near future.
In Washington, increasing dividends could arouse the ire of lawmakers and the White House, which has complained that banks aren't lending enough. KBW's Mr. Cannon said increased payouts shouldn't crimp lending because banks are "sitting on plenty of excess liquidity."

What the Newly Elected Congress Means for Business

One area where President Barack Obama and congressional Republicans could find common ground is trade. Mr. Obama wants to submit a revised South Korea free-trade agreement for congressional approval in January, and hopes to unveil new terms addressing U.S. auto and beef exports during the Group of 20 meeting of global leaders in Seoul next week. Mr. Obama has said he wants to boost U.S. exports by 50% during the next five years. Trade-skeptics in the Democratic caucus have blocked movement on trade-opening deals such as the South Korea treaty.

Jerry Seib and Neal Lipschutz discuss whether the GOP's House victory will impact the implementation of financial reform and health care.

Senate Minority Leader Mitch McConnell (R., Ky.,) said trade is one area where his caucus and the White House could work together. But it is unclear whether the new class of populist, tea-party Republicans share the traditional GOP view that free-trade deals are good for the U.S. economy overall. Big business groups see passage of the South Korea pact as a critical test of whether the White House and Congress can break the stalemate on trade issues.
—Elizabeth Williamson

Defense

Within national-security circles and the defense industry, there is some nervousness about whether the new Congress could push broader cuts in defense spending as part of an attack on the swelling federal deficit. In the past, a Republican House and a more conservative Senate would have been a guarantee of continued defense budget growth. But the influx of tea-party candidates, elected on promises to oppose pork-barrel deals and earmarks and reverse the growth of federal spending, could chart a different course. Debate over how much more to spend on the war in Afghanistan could become a test of the new Congress's direction ahead of the administration's deadline to begin phased withdrawals in July 2011.
Adding to the uncertainty is the expected departure of Defense Secretary Robert Gates in 2011. Mr. Gates, who served as a secretary of defense under George W. Bush before joining the Obama administration, commands the respect of congressional Republicans.
—Nathan Hodge

Energy and Environment

A Republican House represents a big challenge to Mr. Obama's ambitious agenda on energy and the environment. House Republican leaders have said they intend to fight and if necessary deprive funds to the effort by Mr. Obama's Environmental Protection Agency administrator, Lisa Jackson, to regulate greenhouse-gas emissions across wide swaths of the economy using the Clean Air Act. Ms. Jackson could also come under fire from coal-state Democrats in the Senate.
Another potential flash point: offshore drilling. Republicans are expected to call on the Interior Department to speed approval of permits that oil companies need to drill in deep-water areas of the Gulf of Mexico.
Republicans also could challenge the Obama administration's effort to stop construction of a nuclear-waste repository at Yucca Mountain in Nevada—a decision opposed by the nuclear-power industry. Tuesday's victory by Senate Majority Leader Harry Reid, a longtime foe of the project, should keep Yucca Mountain in the deep freeze for now.
—Stephen Power

Transportation

This is supposed to be the year that Congress acts on a big, multiyear bill to finance road building, airport construction and other transportation projects. The Obama administration last year successfully pushed for a delay of action on a proposed $500 billion transportation bill, despite strong protests from House Transportation and Infrastructure Committee Chairman James Oberstar, (D., Minn.) Now, Mr. Oberstar is gone—defeated in his bid for re-election. Ready to take his place is U.S. Rep. John Mica (R., Fla.) Mr. Mica said in a statement Wednesday that passing a long-term highway and transit plan and measures to fund the Federal Aviation Administration and water projects are his top priorities. Mr. Mica also called for a "better directed high-speed rail program." Mr. Mica is more likely than Mr. Oberstar to encourage a bigger role for private investors in building new infrastructure projects, and has called for streamlining the process of getting projects approved.
Infrastructure spending is one area where business groups welcome federal spending. The U.S. Chamber of Commerce, which invested heavily to defeat congressional Democrats in the 2010 elections, has supported raising taxes to fund transportation improvements.
—Melanie Trottman

Health Care

Health-care companies see the Republican win as a chance to chip away at aspects of Mr. Obama's health overhaul least favorable to the industry. Insurance companies, drug manufacturers and hospitals say they will press to peel away the law's new taxes on health-care companies, pass tougher medical malpractice curbs and knock down a new board that recommends Medicare spending cuts. Opponents of the law may have the most success removing the law's new tax-reporting requirement that requires businesses to file a 1099 tax form when they pay a vendor more than $600 in a year. Where the health industry is most concerned about the Republicans' plans is the party's strong opposition to the law's requirement that most Americans carry insurance or pay a fine, something that could cost health-care providers millions of new customers. House Republicans say they plan to pass a bill repealing the law. That will almost certainly die in the Senate or on Mr. Obama's desk.
—Janet Adamy

Pharmaceuticals

The pharmaceutical industry wants to hold on to concessions it won from Democrats during their reign in Congress, while benefiting from antiregulatory sentiment among Republicans who captured the House, industry lobbyists said.
In negotiations over the health bill that passed in March, the industry offered $80 billion in savings and won a promise from the White House not to pursue certain cost-cutting steps such as importing cheaper drugs from Canada. About half of the savings was intended to close a gap or "doughnut hole" in Medicare drug coverage that some seniors face. Despite Republican calls for a repeal of the health law, drug-industry lobbyists say they don't expect a GOP bid to reopen the doughnut hole because it would anger seniors and risk giving wounded Democrats a rallying cry. The incoming Republicans also may be more sympathetic to industry views on regulation, such as the industry's push to continue a system under which companies pay user fees to get faster decisions on drug applications.
—Alicia Mundy

Wall Street

House Republicans didn't wait for the final results of Tuesday's vote to launch their assault on the Obama administration's effort to tighten regulation of Wall Street.
Rep. Spencer Bachus, an Alabama Republican who will be one of the contenders to take over the House Financial Services Committee next year, said Wednesday he wants to rewrite "job-killing provisions" of the Dodd-Frank financial-overhaul law, starting with new rules on derivatives trading. Also high on Mr. Bachus's agenda: overhauling mortgage-finance giants Fannie Mae and Freddie Mac. Republicans want to wind down the two companies, currently under government control.
But any effort to change Dodd-Frank would need Democratic support in the Senate, and then Mr. Obama's signature. In the event those aren't forthcoming, House Republicans could try to cut off funding for agencies implementing Dodd-Frank or grill administration officials in Capitol Hill hearings.
—Victoria McGrane

Telecommunications

House Republicans will likely put the brakes on efforts by the Federal Communications Commission to re-regulate Internet lines. Phone and cable companies are fighting the plan, and Republicans have already warned the FCC to drop the plan.
Telecom and tech policy issues are likely to take a back seat next year. But Republicans and Democrats could find common ground in efforts to write stronger rules on Internet privacy.On Wednesday, two leaders of the House Energy and Commerce Committee, Rep. Joe Barton (R., Texas) and Rep. Ed Markey (D., Mass.), jointly warned that they plan to put "Internet privacy policies in the crosshairs" with hearings and legislation.

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U.S. Manufacturing Powers Up in October

Unexpectedly, manufacturing unexpectedly picked up steam in October, raising hopes for a strong final quarter that could underpin a flagging economic recovery, a key industry survey showed on Nov. 1.

The Institute of Supply Management (ISM) said its survey of purchasing managers nationwide revealed strong gains in new orders and production, pushing up its index to 56.9%, from 54.5% in September.
The surge was much stronger than a dip to 54% expected by most analysts.

"The ISM index posted a surprisingly strong rebound in light of the report last week that the general economy remains in a growth slump," said Daniel J. Meckstroth, Chief Economist for the Manufacturers Alliance/MAPI. "The important reason for the October rebound is the reversal of the trade situation.  Export growth reportedly surged while import growth backed off. In other words, less domestic spending was drained away to support foreign manufacturing and more production was directed to domestic producers. 
"Manufacturers have experienced parts availability problems for the last six months and  have been slow to ramp up production allowing imports to fill the void," he added. "The ISM report suggests that, at last, the import surge in manufactured goods may be subsiding with all the beneficial side effects (rising orders, production, and employment). Today's ISM report is good news for U.S. manufacturing."
Manufacturing activity has expanded for 15 consecutive months but momentum had been slowing since April. The October jump suggested new life in the sector that has been a key driver of the recovery after recession officially ended in June 2009.
"This month's report signals a continuation of the recovery that began 15 months ago, and its strength raises expectations for growth in the balance of the quarter," said Norbert Ore, head of the ISM's manufacturing business survey committee.

Copyright Agence France-Presse, 2010

How To Determine The Best Approach For Financing Your Equipment

If your company is looking to expand, upgrade or just keep operations running smoothly, having the right equipment financing solution can affect your overall financial position. Financing is available for all sizes of equipment acquisitions, from technology upgrades to heavy equipment such as mining equipment or yellow iron. When seeking out an equipment financing source, it’s important for businesses to be prepared.

What are the first things to consider when financing equipment?
Look at your company’s capital position to determine what the right financing option is. Future cash flow should also be a consideration, as financing may affect the cash flow of the company both in terms of the productivity the equipment may provide and the required payments. It is also a good idea to consult with your company’s accountant to help determine the best option available for the business.
Before acquiring equipment, evaluate the value that the equipment is likely to bring your business. Business leaders then need to decide what financing product makes the most sense for the company, whether it is to lease the equipment, obtain a loan or use cash to purchase. Each option has its benefits.
A lease, for example, typically has little to no out-of-pocket expense up front, whereas a loan may require a down payment or equity injection into the equipment. Business leaders should also consider what impact a lease or loan will have on the company’s balance sheet. Some leases are off-balance-sheet financing, so the lease payment shows as an expense on the income statement rather than a liability on the balance sheet. If leased, the asset is not carried on the balance sheet either. This can be helpful for a company that has to comply with leverage or debt covenants because these ratios remain unaffected with a lease. Leases can also provide a company with more flexibility regarding the equipment. Some lease structures can include options to return the equipment at the end of the lease, upgrade the equipment, purchase the equipment, or renegotiate the lease. This can allow a company to keep up to date with changes in technology and may provide a competitive advantage in the market.

Can multiple pieces of equipment be financed?
Many business owners want the convenience of a single transaction covering multiple items instead of having separate transactions for various pieces of equipment. Equipment can be combined into a single transaction based on the equipment types, reasonable usefulness, or life. For example, if two pieces of equipment are being acquired, one with a useful period of 10 years and the other a useful period of five years, financing may be structured for seven years to combine the equipment and provide the convenience of one note to the borrower.

When should companies apply for equipment financing?
You should begin to explore financing options as soon as you think that you may need to acquire any new or used equipment. For a company that is expecting to grow and is forecasting an equipment need at a later point and time, equipment lines of credit may be a smart option to have in place in order to provide flexibility to purchase the equipment more efficiently on your own schedule.

Are there special interest rates or payment plans available for equipment financing?
In some cases, a company may obtain financing with no payment due for a period of time, designed to allow the company to get the new equipment up and running and producing revenue before a payment is due. Other seasonal businesses may opt for structured, or skip, payments, which allow the company to match payments to the seasonality of its business and can improve cash flow.

Do certain types of equipment financing offer tax advantages?
When a company purchases equipment, it may be able to take depreciation deductions over a period of time, which lowers its taxable income. Many companies over the last several years have also been able to take advantage of government stimulus programs that allow for accelerated depreciation of equipment or an increase in the Section 179 expense allowance. The interest payments of an equipment loan, and the entire lease payment for some lease structures, are also expensed on the income statement, which can lower taxable income. Before making a purchase, talk to your accountant or tax adviser to learn how specific tax incentives can work for your business.

Liberal Hecklers Won't Let Obama Speak

High-speed rail service at speeds rivaling trains in Europe and Asia?

U.S. Awards $2.4 Billion for Passenger-Rail Projects  By JOSH MITCHELL

WASHINGTON—The Obama administration Thursday awarded $2.4 billion in grants to advance passenger-rail projects in 23 states, amid election-season criticism from some Republicans that the projects are too costly.
More than a third of the money, about $901 million, will go to California, including $715 million to begin building high-speed rail lines in the Central Valley between Los Angeles and San Francisco. Florida will get $800 million for new intercity routes there.
The rest of the $2.4 billion pot, funded largely by this year's budget, will pay for upgrades to existing routes in the Midwest, Northeast and other areas to relieve congestion on freight railroads.
The Obama administration's goal for the new California and Florida routes is eventually to offer high-speed rail service at speeds rivaling trains in Europe and Asia. The corridors would connect Sacramento and San Diego in California, and Orlando, Tampa and Miami in Florida. The projects have already received stimulus funds, and construction is expected to start in the next two years.
Iowa was awarded $230 million for upgrades that will allow passenger-rail service through Iowa City, Chicago and the Quad Cities. Michigan will get $161 million for service between Detroit and Chicago.
The administration earlier this year awarded $8 billion in stimulus money for dozens of passenger-rail projects.
Transportation Secretary Ray LaHood Thursday highlighted the jobs the rail projects could create, and compared the effort to modernize the national rail network to the construction of the interstate highway system under the Eisenhower administration.
Critics of the administration's rail program say the projects could leave states on the hook for millions and possibly billions of dollars in construction and operating costs at a time when they are struggling to balance budgets.
The funding announced Thursday requires that states cover 20% of the cost of a project receiving funds. Very few passenger-rail systems break even, so states could be asked to cover operating losses, as the government already does for Amtrak.
New Jersey's Republican Gov. Chris Christie this week halted a $9 billion project to build a rail tunnel under the Hudson River, saying the project would saddle the state with unsustainable costs. Republican candidates in California, Ohio and Wisconsin also have criticized the administration's high-speed rail projects in their campaigns.