Year-end Tax Incentives: Automation can be a game-changer for your business.
Per Section 179 of the Internal Revenue Code, U.S. businesses are allowed to take a 100% tax deduction for qualified equipment and off-the-shelf software that is put into service by December 31. For a lot of companies, Q4 is typically a time to do an internal audit to make sure all available incentives are leveraged. Incentives like these have already resulted in hundreds of millions of dollars in tax credits for American manufacturers.
Whether it is collaborative or industrial robots, vision systems, safety equipment, temperature screening or other COVID-related precautions, or other equipment, FPE Automation can help you put the latest innovations in place that you need to operate more efficiently. But hurry, even with efficient manufacturing and short lead times, there isn’t much time left in the year.
Year-end Tax Credits: 100% Deduction for Automation Equipment
You may have heard that it is less than that. That may be because, prior to the enactment of TCJA, businesses could deduct only 50% of the value of the equipment in year one. The good news? Now businesses can take advantage of the 100% bonus depreciation on qualified property through 2022.
Businesses making capital purchases can take advantage of this opportunity to cut their tax liability in year one, and reinvest the savings into the business at a faster rate. FPE Automation can help you with the automation equipment. Contact us for details. Your qualified tax professional can help you with the rest, or we can put you in contact with one of our trusted partners to help you get started. Watch the related video here.