While we normally discuss topics that are specific to EDM technologies and processes, I found it important and beneficial to discuss the upcoming expiration of the 2011 tax benefits under the 2010 Tax Relief Act. I’ve seen and spoken with numerous manufacturers who have taken advantage of this policy, investing wisely in new technologies to grow their business and improve their competitive stance, while saving greatly on investment costs. Unfortunately, this policy is not permanent and full benefits only apply to manufacturers who have purchased AND installed equipment in 2011.
The previously passed 2010 Small Business Jobs Act allows companies to fully expense $500,000 in tangible property purchased in 2011 under section 179. In addition, businesses can also benefit from a 100 percent bonus depreciation deduction on qualified, new machinery and equipment.
These tax incentives provide businesses that invest in new machinery and equipment extensive savings and better cash flow in the year of acquisition. In some situations, tax savings on new investments have even exceeded monthly payments for the first year and more. Below is an example of this positive cash flow from tax savings.
If you would like more information on these current tax benefits, please check out our new webinar “Investing In Your Future,” hosted by Tom Scherpenberg.
For those still interested in taking advantage of this tax break, Makino has inventory available for many of our most popular machines, including the DUO43 wire EDM and EDAF2 sinker EDM – each ready for immediate delivery. Click here to learn more.
-Jeff
