Get Tax Deductions
2018’s spray foam equipment tax credit laws offer small to mid-sized businesses a great reason to buy before the year is over. Right now, you can write off the total purchase price of up to $1 million in qualified purchases in spray foam equipment.
Intech has everything you need to supplement or enhance your spray foam applications and help your business grow. Browse our excellent selection of spray foam equipment and be sure to also consult your trusted tax professional to make sure that every purchase you make can benefit you financially.
What is the Section 179 Deduction?
Section 179 of the IRS tax code offers a big incentive to small businesses. This valuable deduction provides vital tax relief to small businesses so that they can invest in themselves with confidence.
For 2018, most small businesses can write off up to $1 million in qualifying equipment purchases. This deduction is valid until you exceed $2.5 million in purchases, from which a dollar-for-dollar phase out commences. If you exceed $3.5 million, the $1 million credit disappears, and you can only benefit from depreciation credits.
This means that most of the section 179’s perks apply to small businesses or those that spend less than $2.5 million on equipment per year. This deduction also allows a business to write off the entire purchase price of an equipment from their gross income. Before this act, businesses had to wait to buy the equipment they needed because they could only write off the equipment in segments through depreciation.
Qualifications For the Deduction
The section 179 tax deduction allows you to deduct the total or part of the purchase price of business equipment that meets these qualifications:
- Business vehicles that weigh over 6,000 lbs.
- Any equipment purchased to be used in your business, like sprayfoam equipment.
- Deductible expenses up to $1,000,000 for new or used equipment.
- You may get additional deductions if you qualify for bonus depreciations.
- The maximum amount that is eligible for the full $1,000,000 deduction is $2,500,000. Then, there is a dollar-for-dollar phase out.
- The entire deduction goes away after the business spends more than $3,500,000.
Before the end of the year is the perfect time to buy equipment to reap these tax benefits. If you wait beyond December 31, 2018 to buy, then you will have to claim that equipment for 2019’s taxes.
How the Deduction Works
Going by the most up-to-date tax laws, here is an example of what to expect, courtesy of Crest Capital’s convenient section 179 tax deduction calculator.
Let’s say you spend $50,000 on spray foam equipment for 2018. This amount falls below the max amount for your write off of $1 million. Though you don’t qualify for any bonus or normal first-year depreciation, you still get to claim 35% of $50,000.
In the end, your total first-year deduction amounts to $17,500, assuming you will be taxed at the 35% rate. After the credit is applied, the total cost of your equipment is $32,500.
Saving almost $20,000 on equipment that you need to keep your business running is quite a deal! Intech carries a wide variety of quality spray foam equipment that you can purchase right now to boost your productivity and update your current machinery.
According to section179.org, in order to claim your valuable section 179 deduction, your equipment “must be financed or purchased and put into service between January 1, 2018, and the end of the day on December 31, 2018.” Now is the perfect time to get the equipment you need and to write off its total purchase amount.
Buy Spray Foam Equipment Before Prices Go Up
In 2019, spray foam equipment prices are going to increase as they typically do each year. Quality brands like Graco, PMC and other equipment manufacturers will inevitably need to increase prices to keep up with inflation and industry demands. Buying your equipment now ensures that you get the best price possible. It also means that you can include your purchase in your end-of-the-year deduction.
Get Your Tax Benefits at Intech
If you need to buy much-needed spray foam equipment and replacement parts, now is a great time to buy. At Intech, you can purchase top-of-the-line spray foam products from only the best brands out there. Unlike other vendors, you can purchase products individually without being tied to spray foam or rig packages.
To find out about the quality spray foam machines and parts that we carry, contact us at Intech Equipment & Supply.