Section 179 Tax Code

factory-equipment

 

Section 179 Offers Serious Tax Advantages for Equipment Purchases

Because of the Section 179 of the tax code, purchasing equipment and machinery might be the most profitable decision you make this year. Section 179 gives small and medium businesses a huge tax deduction when they invest in equipment and machinery. It allows businesses to deduct the full purchase price of equipment in the same year, rather than writing off the expense over time, say for 5 years, for example.

Potential Savings with Section 179 Deduction (tax savings example):

section-179-savings

Big Benefits for Leasing and Financing Equipment

When it comes to leasing or financing equipment, the Section 179 deduction might be the most profitable decision you make this year. A clear advantage to leasing or financing is that you can deduct the entire amount without paying the full amount this year.The Section 179 deduction extends to financed and leased equipment. The example below shows estimated monthly payments for $138,000 equipment purchase using the online calculator from Ascentium Capital.

Use this easy, 3 step calculator to estimate monthly payment terms.

section179-calculator

According to Ascentium Capital, a leading provider of equipment and technology financing solutions, “Tax provisions accelerate depreciation on qualifying business equipment, office furniture, technology, software and other business items. When you finance such purchases with Ascentium Capital, you may deduct a significant portion, up to $1 million in 2018 (to be adjusted for inflation). There is a dollar-for-dollar phase out for purchases over $2.5 million. Additionally, bonus depreciation has increased from 50% to 100% on qualifying assets. Consequently, not only will Section 179 help bolster your bottom line, you garner the benefits of new equipment and technology that will help grow your business.”

Ascentium’s flexible structures combined with 100% financing means you avoid substantial out of pocket costs.


Section 179 Offers Deductions on Automation Equipment, Industrial Computing, Robotics and more:

  • Automation Components and Equipment
  • Robotics
  • UR Collaborative robots
  • Robotic accessories, End-of-Arm Tooling, Grippers, etc
  • PLCs and HMIs
  • Remote monitoring equipment
  • Industrial networking equipment
  • Sub-Assembly or Control Panel Projects 
  • Industrial Rugged Computers, Panel PCs, Embedded Computing, etc.

Now is an ideal time to invest in equipment that will improve your productivity and profitability. Our engineers can help you select the right products at the right price – all within the end of the year deadline.


Speak with an MSI TEC Engineer at 866.397.7388 or send an email.


You must act now! The deadline to take advantage of the Section 179 deduction is December 31, 2018. That means equipment must be purchased and placed into service by the end of the year.

Find more information on Section 179 and leasing and financing options: