With the new year right around the corner, it’s a great time to plan for tax savings before it’s too late. Purchase automated welding machines from Bancroft Engineering to not only improve your manufacturing process but also to save your business money during tax time.
How Does Section 179 Expensing Work for Welding Equipment Purchases?
Section 179 of the United States Internal Revenue Code (26 U.S.C. § 179) is now available which allows you to write-off up to $1,000,000 of a qualifying equipment purchase for 2019.
In previous years, when businesses purchased welding equipment, they would write it off little by little through depreciation. For example, if your business spends $75,000 on a piece of machinery, you might write off $15,000 per year for five years.
Now, with Section 179, a business can write-off the entire purchase price of qualifying equipment for the current tax year. As in our previous example, if your manufacturing business spends $75,000 on a piece of automated welding machinery, you can write off all $75,000 in the same tax year using Section 179. This makes a big difference for small and medium-sized businesses as it allows you to accelerate your tax savings!
How to Qualify for Section 179
Section 179 is an attractive tax deduction for manufacturing businesses—it’s also easy to understand and utilize. Most new and used tangible business equipment qualifies as long as it meets the following criteria:
- Equipment must be installed and ready for service in the same tax year
- More than 50% of the use of the equipment must be used for the business
Real Example of Section 179 Expensing
- Cost of equipment after Bancroft Engineering Discounts: $175,000.00
- Section 179 Deduction: $175,000.00
- Total First Year Deduction: $175,000.00
- 35% Saving on Equipment Purchase: $61,250.00
- Lowered Cost of Equipment After Tax Savings: $113,750.00
Utilize Section 179 with Your Next Automated Welding Machine Purchase
There has never been a better time to purchase welding equipment and take advantage of major savings!
Bancroft Engineering designs and builds welding equipment such as standardized and custom welding machines and much more out of Waukesha, WI—specializing in stand-alone equipment to fully robotic automated systems. Need help automated your welding process or have a special welding application? Give us a call at 262-786-1880, or email: firstname.lastname@example.org to get started.