Federal financial incentives for EHR

A physician practice may be able to recover some or all of its costs through the American Recovery and Reinvestment Act (ARRA), which will provide up to $44,000 per physician to practices that use qualifying EHRs.

In addition to incentives provided in the economic stimulus package, medical groups can take advantage of the Section 179 tax deduction, which covers computers and computer software purchased in 2009. Originally part of the Economic Stimulus Act of 2008 signed by President Bush, the ARRA extended the tax deduction to purchases made through the end of 2009.

Section 179 can change yearly without notice, so it benefits you to take advantage of this generous tax code while it's available. Section 179 offers small businesses a great opportunity to maximize their purchasing power. In addition, the Economic Stimulus Act of 2008 and Recovery Act of 2009 has provided the small business owner with generous new (and higher) deduction limits. Most of the equipment your practice will purchase or lease qualifies for the deduction, so verify that your practice is leveraging the Section 179 Deduction this year.

For more information on Section 179 tax deduction click here.