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Take Advantage of the Section 179 Tax Incentive
Section 179 of the tax code offers significant benefits to businesses looking to purchase large equipment by the end of 2023.
(Houston, TX – October 16, 2023) Section 179 of the tax code offers significant benefits to businesses looking to purchase large equipment by the end of 2023. This year, the provision allows businesses to deduct the full purchase price of qualifying equipment, up $1,160,000, in the year the equipment is placed in service. The spending cap is $2,890,000.
One of the key advantages of utilizing Section 179 is the immediate reduction of taxable income. By deducting the full cost of qualifying equipment, businesses can lower their taxable income for the current year, resulting in reduced tax liabilities. This can lead to substantial tax savings, allowing businesses to keep more of their hard-earned profits.
Furthermore, the accelerated depreciation offered by Section 179 can provide a significant cash flow advantage. Instead of spreading out the depreciation deductions over several years, businesses can immediately deduct the full cost of the equipment. This frees up capital that would have otherwise been tied up in equipment purchases.
Another benefit of Section 179 is its accessibility to businesses of all sizes. Unlike some tax incentives that are limited to small businesses, Section 179 has no cap on annual sales or earnings requirements. Whether you are a small startup or a large corporation, you can take advantage of the provision as long as they meet the eligibility criteria.
Moreover, Section 179 applies to a wide range of equipment, including machinery, vehicles, computers, and software. Specifically, to the Vortex Family of products this applies to UV CIPP installation rigs, sprayMASTER mortar and polymeric rigs, Schwalm Robotics systems and trailers, IMARS geopolymer lining equipment, and even the VeriCure CMS and its software package. Download the flyer here for more details.
In addition to the immediate tax savings and cash flow advantages, utilizing Section 179 can also provide businesses with long-term benefits. Upgrading and modernizing your trenchless rehab equipment can lead to cost savings through improved operational efficiency, reduced maintenance expenses, and increased production capacity.
As always, Tax rules will be dependent on your specific tax situation. Please consult your tax advisor.
