As industries transform, automated welding equipment becomes an even more essential asset to manufacturers looking to overcome challenges like high scrap costs, slow production speeds and the ongoing welder shortage.
2024 presents businesses with an excellent opportunity to save thousands in taxes thanks to an updated Section 179 tax deduction. Let’s discover what this deduction in 2024 holds!
Understanding Section 179
Section 179 of the Internal Revenue Service is a tax code that allows businesses to fully deduct qualifying equipment costs purchased, financed or leased during the year under consideration as tax deductions—providing significant tax savings that allow you to invest back into growth and efficiency initiatives for greater productivity.
2024 Changes
Section 179 has seen an important update, increasing its maximum deduction to an eye-opening $1,220,000 from $1,160,000 in 2023. This allows businesses to write off even more equipment purchases in one tax year through Section 179 deductions.
Traditional depreciation practices for equipment would spread tax benefits over several years, creating smaller tax savings year over year. With the new Section 179 for 2024, businesses can take a full deduction upfront and reap significant tax savings benefits.
2024 Qualification Criteria
In order to take advantage of the Section 179 deduction in 2024, automated welding equipment must meet certain criteria. Here’s what you should know:
- Within each tax year, qualifying equipment must be acquired, financed, or leased and placed into service to qualify as tax write-offs.
- At least half of its use must be for business purposes.
Savings Snapshot for 2024
Section 179 offers significant savings opportunities in 2024, making now an excellent time to invest in welding automation technology.
2024 Section 179 Illustration: A Real-World Welding Example:
- Welding Equipment Cost (after Bancroft discount) = $245,000
- Section 179 Deduction = $245,000
- Total First Year Deduction = $245,000
- 35% Savings Off Purchase Price = $85,750
- Adjusted Equipment Cost After Tax Savings = $159,250
Reap the Benefits of Section 179 in 2024
With Section 179, manufacturers can make smart investments that save them money before the end of 2024. Don’t wait; take advantage of this tax-saving opportunity now.
Bancroft Engineering of Waukesha, Wisconsin stands out as a pioneer of welding innovation. Offering everything from standard welding machines to robotic welding, automated & semi-automated systems or custom solutions to meet unique welding challenges, Bancroft Engineering provides everything needed for successful automation integration.
If you need assistance automating your processes or customized welding solutions, reach out to our sales engineers so we can begin your automation journey together.
