2016 Tax Incentives for Manufacturing Companies
Dec 21, 2015 - The "Protecting Americans from Tax Hikes Act of 2015" (PATH Act) has been passed by both the House and Senate and signed into law on 12/18/15 - expanding the Section 179 deduction limit to $500,000.
Section 179 will be permanent at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment will have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years.
50% Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.
You can get more details in the section-by-section summary of the "Protecting Americans from Tax Hikes Act of 2015
>> A Bonus Depreciation Tax Savings Calculator can be found here. <<
Contact your Makino Capital Services representative to understand how you can take advantage of this program and the latest news on possible increases to purchase limits.
Please consult a qualified accountant to determine how these benefits may apply to your business.
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