Leasing and Tax Credit Options
Tax Credits and Financial Help can Make it More Affordable to Buy A Machine
When looking to buy a piece of machinery - taking into consideration the tax advantages and financial options can be the incentive you need to upgrade or replace your existing fabrication machinery.
Section 179 Tax Deduction at a Glance for 2018:
Section 179 Federal Income Tax Deduction increased from $500,000 to $1,000,000:
This deduction allows a company to deduct the first $1,000,000 of equipment (Section 179 Property) acquired in 2018 from their taxable income. For companies acquiring up to $2,500,000 of equipment, this deduction is available in full. It then phases out on a dollar-for-dollar basis for amounts over $2,500,000. Financing and leasing with a $1 buyout qualify.
100% Bonus Depreciation:
Bonus depreciation has been increased from 50% to 100% on the adjusted basis of qualified equipment acquired in 2018. This bonus depreciation is retroactive to Sept. 27, 2017 and good through 2022. Financing and leasing with a $1 buyout qualify.
(The above is an overall, "simplified" view of the Section 179 Deduction for 2018. For more details on limits and qualifying equipment please see www.section179.org)
Here are some more tools: