With autumn now in full swing, the holidays and the new year are just around the corner. Before the white stuff starts flying, we want to remind you not to let time run out on year-end tax incentives!
Eligible businesses can take advantage of Section 179 tax deductions before the end of the year. This could mean a great deal of savings for your company and get you the waste and recycling equipment you need now!
What Are Section 179 Tax Incentives?
Section 179 of the Internal Revenue Service tax code was designed to encourage small businesses to invest in growth by providing them with tax incentives on qualifying equipment and technology purchases.
Section 179 incentives allow you to deduct the FULL purchase price of equipment during the tax year, rather than a steady depreciation over time. This often allows businesses to purchase even more equipment or technology to further their growth.
Here are some facts about the Section 179 tax incentives:
- The Section 179 deduction for 2021 is $1,050,000 (up from $1,040,000 in 2020). U.S. companies can deduct the full price of qualified equipment purchases, up to $1,050,000, with a limit of $2.62 million. The deduction includes both new and used qualified equipment.
- Businesses can take advantage of 100% bonus depreciation on both new and used equipment for the entirety of 2021.
- Whether you purchase or lease equipment, Section 179 allows you to deduct the FULL PURCHASE PRICE for tax year 2021 up front, rather than just deducting payments or annual depreciation.
What Does This Mean For You?
To be eligible for a 2021 Section 179 deduction, the eligible equipment must be purchased and put into service by midnight 12/31/2021. With recent supply chain issues, you will want to plan ahead and order your equipment soon.
Here is an example of what you could expect with these tax incentives. If you made baler and compactor purchases worth $100,000, you could save up to $21,000.
Not only that, but items like compactor monitors may be considered as equipment and technology that qualifies for this deduction. Our Insite Technology is the innovative way to help you reduce hauling and labor costs, while maximizing the efficiency of your waste equipment.
Below are some helpful resources to help you decide if you should take advantage of these beneficial tax incentives:
For more information about Section 179, visit Section 179.org.
Ascentium Capital has come up with a great video about Section 179 as well as a fun quiz to test your knowledge of the code.
Please be aware that Harmony Enterprises does not offer individual tax advice. We encourage you to talk to your accountant or tax attorney for more information on how the Section 179 code specifically applies your company and the equipment you purchase.
Contact Harmony Today!
Harmony Enterprises manufacturers a wide range of waste handling and recycling solutions for every type of business. We often have extra stock of both new and used balers and compactors ready to ship to your location. Contact us or call us today at (507) 886-6666 to learn more how tax incentives can help your bottom line!