As has become its pattern, the United States Congress waited until the 11th hour of 2015 to approve the Section 179 deduction of business equipment for 2016. The good news is that this means you can write off up to $500,000 of manufacturing equipment put into service by December 31, 2016. Had this legislation failed to pass and be signed into law by the President, the 179 deduction limit would have been capped at $25,000.
Section 179 is a great incentive for small business (those spending no more than $2,000,000 in equipment purchases in 2016) to improve their competitive advantage by upgrading to the latest technologies and software.
To be clear: Businesses that qualify for Section 179 deductions can write off the entire equipment purchase coat, up to $500,000, against their 2016 income. This is true whether the equipment is bought or leased, and thus is an opportunity to reduce taxable income while improving or expanding your production capabilities.
To see how much Section 179 can save you on your next equipment purchase, Gosiger partner, Connext Financial has an online Section 179 Savings Calculator.
If you plan to take advantage of Section 179 in 2016, contact Gosiger today. With more than 90 years of experience serving manufacturers like you, the Gosiger team can help you find machine tools, engineering services, and robotic automation technologies that meet your specific requirements.