The Tax Reform Legislation signed into law by the President in December, 2017 makes significant changes in how manufacturing companies deduct the cost of equipment for tax purposes.
Beginning with equipment purchased September 28, 2017 until December 31, 2022, 100% of the cost may be deducted from taxable income in the year purchased. Previously, the cost was written off over multiple years.
So if you are considering upgrading your compressed air or finishing system, any new equipment purchased in 2018 should qualify for this accelerated deduction. If you have any questions regarding the Tax Reform Legislation, contact C.H. Reed and please consult with your tax advisor.