Great question.

Businesses with a fiscal year-end that begins in 2011 can take advantage of the higher Section 179 limit of $500,000 all the way through their fiscal year-end in 2012.

However, businesses with a fiscal year-end that begins in 2011 can not take Bonus Depreciation for qualifying assets placed in service after December 31, 2011.

If you plan to take advantage of the larger first-year deductions by making significant capital expenditures in 2011 or 2012, I recommend asking your tax advisor to compute your actual deduction — especially if you operate on a fiscal tax year, where the Section 179 limits apply to a different time frame than Bonus Depreciation.