The window will close on Dec. 31 on 2017 tax benefits for manufacturing equipment acquisitions, so companies should act fast, notes a new article posted by Powder & Bulk Solids and written by Key Equipment Finance's Peter Bullen, senior vice president – bank channel for Key Equipment Finance.
Acquiring new or upgraded equipment can help manufacturers guard against equipment obsolescence, maintain safe processes and stay ahead of the competition.
"Forward-thinking manufacturers are already considering profits, losses and sales projections as the year winds down," writes Bullen. "These factors also help determine the best way to pay for capital equipment and maximize the tax benefits of Section 179 and Bonus Depreciation for qualifying purchases."
"With the industry experiencing a slow and volatile economic recovery, many operators have aging equipment needing to be upgraded or replaced, which also provides opportunities for vendors to help customers solve their cash flow problems."
"Financing capital equipment enables manufacturers to conserve their cash and lines of credit while providing maximum flexibility. Financing at the end of the year is also a smart way for dry processors and bulk materials handlers to use any remaining capital budget while preparing for the year to come."
The article goes on to describe three reasons the fourth quarter is an excellent time to move forward with an equipment acquisition to gain tax benefits.
Read the entire article here: