One outcome of the “fiscal cliff” legislation passed and signed into law in January 2013 should encourage manufacturers who need to upgrade automated machinery that is vital to their profitability.
The American Tax Relief Act of 2012 extends the temporary bonus depreciation for unlimited capital equipment purchases installed during 2013 at the rate of 50 percent in the first year. What’s more, the newly enacted law raises the limit on Section 179 write-offs to $500,000 and increases to $200,000 the total amount of equipment that can be purchased with full tax benefits.
We are not tax and finance experts, but the new law certainly gives capital equipment buyers a strong incentive to move ahead with an added degree of confidence, since their investment in new machinery, taking advantage of a combination of bonus depreciation and Section 179 provisions, may be more than 80% expensable in the first year!
For an overview and illustrations of the advantages for manufacturers in Section 179 of the IRS Tax Code, visit http://www.section179.org/ or see the dollars-andcents explanation provided on the web site of the Association for Manufacturing Technology at http://www.amtonline.org/article_display.cfm?article_id=177195 . Consult your financial and tax advisors to discuss details of the impact of the special incentives on your justification for the purchase of a Guyson manual, automated or robotic blast system in 2013.