As the year ends, many American manufacturers may be assessing their fleet of capital equipment, and how it aligns with their business reality. Will my current equipment keep me competitive in the industry? Is my manufacturing lifecycle as productive as I’d like it to be? Having answers to these questions, and ones like it, can be helpful when planning your next capital investments.
Here are some additional factors to consider before making your next equipment purchase:
Know your purchasing options: By carefully assessing each method of purchase, this will help you seal the deal with confidence:
- Purchase: This is the best way to quickly get the equipment into your manufacturing cycle.
- Lease: Though you do not own the equipment, your payments may be lower than that of a purchase. Purchase time will be held up by the lease contract.
- Rent: A great option for a specific, one-off project.
Have a feel for cash flow and ROI: Consider the impact that the purchase will have on your cash flow. While it may affect your business via lowering of cash flow over a short period of time, your ROI should reflect positively.
Search for tax breaks: With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act in the United States, the deduction limit for Section 179 remains at $1,000,000 for 2019 and beyond, while the limit on equipment purchases remains at $2.5 million.
Rather than write off a large purchase a little at a time, Section 179 allows American manufacturers to write off the entire purchase at once. This will help businesses make critical capital investment decisions more quickly and help continue to move the economy in a positive direction.
If you’re a US-based manufacturer, be sure to utilize these tax savings to increase your operational efficiency and boost measurement productivity! This incentive can be applied to hardware options including the GLOBAL S, all-new Absolute Arms and industry-leading Leica Absolute Trackers. Section 179 can also be applied to our suite of design, production and metrology software.
To see how much your organization could save on your taxes this year, Section179.org has created this handy calculator.
To take advantage of this offer, and to get in contact with your local representative, click here.
For a full list of frequently asked questions, visit Section179.org.
