As 2017 is coming to a close, your manufacturing company is likely reflecting on its yearly goals and evaluating the company’s performance, both in terms of efficiency and profitability. In analyzing ways to grow and streamline your processes in 2018, the topic of implementing an industry-specific ERP solution may have been contemplated. Perhaps making the investment was going to be pushed off until next year, but we suggest that now is the time to take advantage of the tax savings. Utilizing the IRS Section 179 deduction can provide the incentive your company needs to end 2017 on a positive note.
While understanding the intricacies of the tax code may not be in your wheelhouse, Section 179 is rather straightforward. It allows businesses to deduct the full purchase price of qualifying equipment and/or off-the-shelf software purchased or financed during the tax year. As part of the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act), it was introduced as an incentive to encourage business to buy new equipment and in turn, invest in themselves and stimulate the economy. In 2017, the deduction limit is $500,000 and provides significant tax savings on qualifying purchases made by end of the day on December 31st, 2017.
To take advantage of the benefits of Section 179, you can deduct up to $500,000 of your ERP software investment from your gross income. Claiming the deduction is as easy as filling out a simple IRS form. When utilizing this benefit, your company retains money by taking advantage of significant tax savings, while at the same time investing in the software you need – it’s a win-win for your company. A new ERP solution makes a dramatic difference in your bottom line at year-end, while at the same time starting off 2018 on the right foot with process manufacturing software that grows with your company.
Since we are experts in batch processing software, not in tax law, we encourage you to research and consult with your tax advisor to see how Section 179 tax deductions can benefit your company, before making your purchase. For detailed information about Section 179 specifically, as well as a free calculation tool, visit section179.org.
Keep in mind that while Section 179 deductions were made “permanent” in 2016, tax reform currently in negotiation in Congress may result in unforeseen alterations to this tax benefit after the current year. Before any changes take place, help your manufacturing company take advantage of this tax savings while it is still available in 2017. If you’re ready to invest in new and innovative functionality with ProcessPro’s ERP solution, contact us to let our experts help you to take advantage of this tax benefit today.