Tax Incentives for manufacturing companies increased for 2013!
2013 TAX INCENTIVES FOR MANFACTURING COMPANIES
$500,000 write-off!
Section 179 Federal Income Tax Deduction: This deduction allows a company to deduct the first $500,000 of equipment (Section 179 Property) purchased in 2013 from their taxable income. For companies purchasing (or leasing with a $1 or $101 buyout) up to $2,000,000 of equipment, this deduction is available in full. It then phases out on a dollar for dollar basis for amounts over $2 million. This valuable tax incentive is RETROACTIVE for 2012 as well. Qualifying purchases you made in 2012 can now be eligible for the new, higher deduction limits.
50% Bonus Depreciation!
In addition to the $500,000 write-off, companies can take 50% bonus depreciation on the adjusted basis of their qualified equipment purchased in 2013. Equipment must be purchased and placed into service on or before December 31, 2013.
Companies may be eligible for standard depreciation, plus state or local tax incentives.
Example: $850,000 Equipment Price
2013 write-off based on equipment price of: |
$850,000.00 |
Federal Section 179 Deduction |
-$500,000.00 |
50% Bonus Depreciation (Equipment price less Sect. 179 x 50%) |
-$175,000.00 |
Standard Depreciation (14.29% x $175,000)
On the adjusted basis of equipment |
-$25,007.00 |
Estimated Write-off for 2013 |
$700,007.00 |
Now is the time to invest in new equipment!.
* Always check with your accountant to confirm eligibility for tax benefits.
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