The two tax benefits under US Internal Revenue Service (IRS) Code are the enhanced Section 179 deduction and the bonus depreciation provision.

The enhanced Section 179 of the IRS Code may allow retailers to expense the cost of eligible property, purchased and installed in 2008. Recent changes to the code increased the maximum amount that retailers can write off in a single year to $250,000 of the equipment value acquired in 2008.

Under the bonus depreciation provision, a depreciation deduction of 50% of the cost of the property can be taken in the first year. There is no phase-out or income cap under this provision. This reportedly makes the deduction an attractive option for all retailers who want to update their sites or build new ones.

The leasing program for Gilbarco Veeder-Root equipment, through Patriot Capital, allows retailers to finance Gilbarco equipment in 2008, to take advantage of the stimulus package and delay payments until 2009.

Richard Browne, vice president of marketing for North America at Gilbarco, said: This is the right time for retailers to upgrade their technology and capture these tax benefits. New payment card industry requirements for accepting debit at the dispenser and point-of-sale end-of-life mandates from the networks will require retailers to upgrade or replace equipment anyway.