The popular Section 179 deductions on equipment purchases have increased from 125,000 to $500,000 in 2013. This rapid deduction allows companies to deduct up to one half a million dollars in just one year without having to depreciate the equipment. The idea behind such a tax credit is to encourage companies to purchase new equipment because as they purchase new equipment and thus hire more people.
Concern: Our industry has a habit of buying new equipment such as electric molding machines and low RPM grinders, but are using them properly. It is critical to know how to get the most out of your investment. To get the most out of your molding machine, you should optimize the fill, packing, recovery, temperatures, part removal, and documentation. These high performance machines are a great investment, but improper processing is like driving a Ferrari around in first gear.
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