Your company could write off a significant amount of the total purchase of equipment under Section 179 while updating your equipment and improving your bottom line.
Under Section 179, Congress has committed to providing valuable economic incentives to manufacturers who purchase capital equipment. This means that your company could write off a significant amount of the total purchase price of a new or used machine, while investing in new equipment that could improve your bottom line.
The Section 179 tax deduction allows companies to write-off up to $1,080,000 of equipment if total acquisitions are less than $2,700,000. If capital acquisitions exceed $2,700,000, this write-off is reduced dollar for dollar. For instance, if a company acquires $2,720,000 of equipment, it is able to write-off $1,080,000 less $20,000 (the amount of capital acquisition over the $2,700,000 limitation) for a net write-off of $1,060,000. Once a company’s capital acquisitions reach $3,780,000, it no longer qualifies for any Section 179 deduction. Equipment which is new to a company (for example, buying a new or used machine), can be expensed under Section 179.
Companies are able to write off 100% of a machine acquisition this year. There is no limitation on how much equipment may be expensed through bonus depreciation. Equipment which is new to a company (for example, buying a new or used machine) can be expensed under Bonus Depreciation.
In the example above, your company could save approximately $80,000 while investing in key equipment, such as lasers, press brakes, or in-house nitrogen generation equipment, that could boost your productivity and lower your price-per-part. For more information about Tax 179 and how it could apply to a specific business, you should consult a tax professional.
On Point Solutions is the exclusive representative for Bystronic metal cutting lasers in Wisconsin, Michigan’s Upper Peninsula, Kentucky, Tennessee, Alabama, Arkansas and Mississippi. Bystronic is the market leader for fiber laser solutions for professional metal fabricators. On Point offers small and large format fiber laser equipment from Bystronic, as well as knowledgeable service and support for your Bystronic machines.
