Is Now the Time to Make that Large Capital Investment?by Kyle Pheland on December 3, 2018 From News And Comment
As the year ends, many American manufacturers may be assessing their fleet of capital equipment, and how it aligns with their business reality. Will my current equipment keep me competitive in the industry? Is my manufacturing lifecycle as productive as I’d like it to be? Having answers to these questions, and ones like it, can be helpful when planning your next capital investments.
Here are some additional factors to consider before making your next equipment purchase:
Know your purchasing options: By carefully assessing each method of purchase, this will help you seal the deal with confidence:
- Purchase: This is the best way to quickly get the equipment into your manufacturing cycle.
- Lease: Though you do not own the equipment, your payments may be lower than that of a purchase. Purchase time will be held up by the lease contract.
- Rent: A great option for a specific, one-off project.
Search for tax breaks: With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act in the United States, the deduction limit for Section 179 has increased to $1,000,000 for 2018 and beyond.
Rather than write off a large purchase a little at a time, Section 179 allows American manufacturers to write off the entire purchase at once. This will help businesses make critical capital investment decisions more quickly and help continue to move the economy in a positive direction.
If you’re a US-based manufacturer, be sure to utilize these tax savings to increase your operational efficiency and boost measurement productivity! This incentive can be applied to hardware options including the GLOBAL S, all-new Absolute Arms and industry-leading Leica Absolute Trackers. Section 179 can also be applied to our suite of design, production and metrology software.
To see how much your organization could save on your taxes this year, Section179.org has created this handy calculator. For a full list of frequently asked questions, visit Section179.org.
Kyle Pheland is the Marketing Promotions Specialist for Hexagon Manufacturing Intelligence, North America. Pheland is responsible for the development and execution of marketing and advertising materials including product promotions, public relations activities, media advertising, customer communications, social media, web content, email marketing, sales tools and events for North America. He holds a Bachelor’s Degree in Marketing from Salve Regina University.