When it comes to equipment for your business, it's important to consider the value it will bring your company over time. If your material handling equipment is essential to your business, then ensuring it is always in top working condition is also essential. Material handling equipment can be expensive to replace, but with the section 179 tax incentive you can write off up to $1 million in capital purchases this year alone!
Looking to replace older machines or increase efficiency? Look at your forklifts, pallet jacks, sweepers, scrubbers, and other material handling equipment. Now is the time to consider if the equipment you have is ready to be replaced to improve your company's efficiency. Cost is absolutely a factor when considering replacing material handling equipment, so why not get the full tax benefits to help offset that cost?
The Section 179 tax incentive allows you to deduct the full purchase price of qualifying material handling equipment in the year you buy it instead of depreciating it over time. It's available no matter whether you use cash or credit to pay for the new machinery. The Section 179 tax incentive has been extended through 2023 with a maximum amount eligible for deduction being $1 million per business, this could be an opportunity worth investigating!
To start, you should look at all your options. Don't just choose one brand—compare a few. You'll need to consider maintenance costs, as well as the value of your time and money. If you're going to be saving time by using new material handling equipment, consider how much that time is worth to you or your business.
You also want to make sure that any new material handling equipment will fit within your budget because there are many other factors involved besides just price. For example, if you buy a large piece of equipment but don't have the room for it in the warehouse or onsite at construction sites, then it's useless.
You should also consider the reputation of the brand. You want to make sure that any new material handling equipment you buy has a good track record. If it is from a well-known brand, then you can be confident that they've been around for a while and know what they're doing.
The IRS has passed major revisions to Section 179 of the American Tax Code, which have now gone into effect. The new law allows a 100% deduction of the total cost of any new or used material handling equipment bought and put in service between September 28th, 2017, and January 1st, 2024. 50% deduction of equipment bought before September 28th, 2017, and put in service before January 1st, 2018, is still unchanged. These revisions allow businesses to deduct 100% of the cost for qualifying equipment and software purchases from their taxable income. Any new or used material handling equipment purchased, leased, or financed and put into use prior to December 31st, 2023, is eligible.
This provision was created as part of The Tax Cuts and Jobs Act (TCJA) in 2017 and has proven especially beneficial. It helps reduce some financial burdens associated with adopting innovative technology and integrating it into existing operations; however, many people have yet to recognize its value or even know what exactly qualifies as eligible under this program's guidelines.
The Section 179 tax incentive is a fantastic way to save money on the purchase of certain types of equipment. If you've been considering investing in new material handling equipment, now is the time to take advantage of this incredible opportunity. We're here to help make sure that your business gets the most out of this amazing section 179 tax incentive!