The Protecting Americans from Tax Hikes (PATH) Act Enacted December 2015 provides TAX INCENTIVES FOR MAZAK MACHINES
Update Note: Special pricing and incentives have been extended.
Please read this article to learn more.
50% BONUS DEPRECIATION EXTENDED THROUGH 2017
- Bonus Depreciation – 1st Year Bonus Depreciation Deduction of 50% is available through December 31, 2017 for NEW machines. (Does not apply to used machines.)
- The bonus depreciation deduction is not capped at a certain dollar level of qualified capital expenditures.
SECTION 179 EXPENSING MADE PERMANENT
- Section 179 expensing – The Section 179 expensing limit is $500,000, with a dollar-for-dollar phase out of the deduction beginning once qualified expenditures exceed $2,010,000.
- The increased 179 expensing limit is permanent effective January 1, 2015. This deduction applies to new and used machines.
EXAMPLE OF FIRST-YEAR DEPRECIATION CALCULATION
$500,000 machine purchase/qualified expenditures
| Section 179 Expensing | $500,000 |
| Total depreciation | $500,000 |
| Tax savings at 35% Tax Rate | $175,000 |
$1,000,000 machine purchase/qualified expenditures
| Section 179 Expensing | $500,000 |
| 50% depreciation | $250,000 |
| 14% regular depreciation | $35,000 |
| Total depreciation | $785,000 |
| Tax savings at 35% Tax Rate | $274,750 |
For questions, contact Dave Augustyniak at (716) 652-8282 or daugustyniak@awmiller.com/awm. We can structure loans, or lease/purchases that keep these incentives available for you. Also, please discuss with your tax advisor to understand the specific impact to your business.
Source: https://www.mazakusa.com/financing/section-179/
