2016 Is The Year for New Tube Bending Equipment

Have you been considering making a new equipment purchase?

Under the “Protecting Americans from Tax Hikes Act of 2015” up to $500,000 of qualifying new or used equipment (including tube benders) costs may be immediately expensed. In addition, Section 179 is now a permanent deduction at the $500,000 level.

If a business' total qualifying equipment purchases exceed $2 million in a given year, the Section 179 deduction will begin to phase out dollar for dollar.  Section 179 maximums will be indexed for inflation in $10,000 increments for future years.

Bonus depreciation has also been extended through the year 2019.  In 2016 and 2017 businesses will be able to depreciate an additional 50% of “new equipment only purchases”, once the Section 179 deduction has been exhausted.  The bonus depreciation amount will be reduced to 40% in 2018, and reduced to 30% in 2019.

That means that 2016 is the perfect time for a new equipment purchase!

Contact us to learn more!