Understanding Section 179 Tax Benefits and How to Take Advantage for Fabrication Equipment Purchases

With the end of the tax year approaching, many businesses are looking at ways to maximize their savings while reinvesting in essential equipment. One of the most powerful tools available to companies is the Section 179 tax deduction, which allows businesses to deduct the cost of certain types of equipment purchased or financed during the tax year. Here’s a look at what Section 179 can mean for you and how it applies to the press brakes and shears we currently have in stock.

What is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year, rather than depreciating it over several years. Essentially, if you buy or lease qualifying equipment, you can deduct the full purchase price from your gross income, which can be an attractive incentive for businesses looking to invest in high-quality machinery while reducing taxable income.

Key Benefits of Section 179

1. Immediate Tax Savings: Instead of waiting for deductions over the useful life of the equipment, Section 179 allows you to take the entire deduction upfront. This can significantly reduce your current year tax liability.
2. Encourages Investment: The deduction makes it easier for businesses to justify equipment purchases, knowing they will have a substantial tax benefit in the first year.
3. No Waiting for Depreciation: Section 179 accelerates the benefit, which can be a major advantage for companies that need equipment to remain competitive but also need to manage cash flow carefully.
4. Maximize Profits and Growth: Businesses reinvesting tax savings into their operations can experience increased productivity, higher output, and expanded capacity, enabling them to grow faster.

2024 Section 179 Limits

For the 2024 tax year, the Section 179 deduction limit is $1.16 million, and the spending cap for the deduction is set at $4.05 million. This means you can deduct up to $1.16 million in equipment purchases as long as your total equipment investments do not exceed $4.05 million. If you exceed that limit, the deduction amount will begin to phase out.

Bonus Depreciation

In addition to Section 179, businesses can also benefit from 80% bonus depreciation for new or used equipment purchased in 2024. This bonus is applied after the Section 179 deduction and can lead to further tax savings. Bonus depreciation is especially useful for businesses that spend above the Section 179 spending cap.

Qualifying Equipment for Section 179

Under Section 179, most tangible personal property (new or used) qualifies for the deduction, as long as it is used for business purposes more than 50% of the time. Equipment that typically qualifies includes:

• Machinery: Press brakes, shears, lasers, and other fabrication equipment
• Office Equipment: Computers, servers, and office furniture
• Software: Business software that’s purchased outright

Why Now is the Time to Invest

If you’re considering a major equipment purchase, now is the time to act and take full advantage of Section 179 before the tax year ends. Investing in durable and high-performing equipment will not only improve your manufacturing capabilities but also help reduce your tax liability this year.

Available Equipment in Stock

To help you meet your production needs, we have the following press brakes and shears in stock, all eligible for Section 179 deductions if purchased and put into service by the end of the year:

How Section 179 Impacts Your Business Growth

Investing in equipment like our MB and MC Series press brakes or MA shears allows your business to streamline production, improve precision, and increase capacity. Each model in our lineup offers unique specifications designed to enhance fabrication performance, from the accuracy of the MB190-122 to the power of the MC350-169. Not only does this improve your operational efficiency, but the tax savings achieved through Section 179 can directly impact your bottom line.

How to Get Started

To take advantage of Section 179 and bonus depreciation this year, consider placing your order soon to ensure delivery and setup before the tax deadline. This way, your investment in quality machinery translates into immediate tax savings, empowering your business with the tools needed to excel in fabrication.

For more information on our in-stock machines and how Section 179 can benefit your business, reach out to us, and our team will be happy to discuss your specific needs and provide a tailored quote.