What is Section 179
Section 179, a part of the U.S. tax code, offers businesses tax incentives for purchasing capital equipment. In 2023, the Section 179 tax deduction limit increased significantly. Businesses can now deduct up to $1,160,000 for eligible capital equipment. While the spending cap for eligible capital equipment rose to $2,890,000 for equipment bought in the same tax year. The Section 179 website is a good source to check out current tax law updates and provides a handy calculator tool This tool aids financial planning, ensuring your facility remains up-to-date, safe, and efficient.
How to Benefit from Section 179
Section 179 is a game-changer for businesses. This deduction allows you to immediately write off certain purchases, reducing taxes for capital equipment. Capital equipment is defined as “Equipment used to manufacture a product, provide a service, or use to sell, store, and deliver merchandise. This equipment has an extended life, so it is properly regarded as a fixed asset.” We specialize in implementing capital equipment as lasting solutions that enhance your facility. Examples of capital equipment could be a mezzanine for increasing usable space or boosting operational efficiency and safety with a VRC lift. Section 179 allows the implementation of these types of material handling solutions without a hefty upfront tax burden. Adding material handling solutions not only improves efficiency but also offers financial benefits through Section 179 utilization.
