The Section 179 Federal Tax Deduction
Category : Company News
With all the new factors influencing the material handling industry you may or may not have heard of the government’s Section 179 tax deduction limit increase in 2018. Allow us to tell you everything you need to know about this deduction!
The Section 179 federal tax deduction limit has been increased to $1,000,000 in 2018. This deduction is for a variety of different types of new and used equipment, but it is important to our industry because it includes various types of material handling equipment! The spending cap on equipment that can be deducted is $2,500,000 and must be financed/purchased as well as put into service within the current tax year.
This is a great initiative for small businesses because it is one of the few government incentives available to them. This deduction provides some much-needed tax relief to these businesses and allows them to purchase equipment they need now rather than wait. With steel prices increasing and the trucking industry becoming more expensive especially for the New England Market (see our blogs on steel pricing and the trucking industry) this federal deduction can take a good amount of the burden off the price of equipment making the full price of freight and install much easier to bear.
It is important that businesses take advantage of this deduction while they can! Adding in that mezzanine your facility desperately needs to increase usable space or implementing that VRC lift to help make your facility more efficient and safe are now viable options for your business.
In order to fully understand everything about Section 179 or if you just want a little more information we encourage you to visit the website, http://www.section179.org/ where more information on the specific types of equipment and how often the equipment must be used by a business can be found.
As always, if Bode Equipment Company can assist with any of your material handling or loading dock and door projects as well as provide you more information on Section 179, send us an email firstname.lastname@example.org, visit our websites www.BodeEquipment.com & www.BodeDockandDoor.com, or Just Call Bode! 800-797-5699.