TECH FINANCIAL SERVICES

In President Obama’s recent State of the Union address, he mentioned doing more to help manufacturing industry investment.  However, at this time there are no announced changes to the 2010 Section 179 Tax Incentive. The terms of the incentive that are published on our website have not changed.

To help determine the amount of the deduction customer’s are eligible for under the 2010 incentives, we made a custom-designed Interactive 2010 Tax Incentive Calculator to determine the incentive a proposed lease will be eligible for. It is an Excel worksheet that will let you input numbers and see the result of the calculation using the data from the new version of the Section 179 code changes for 2010.

Use our  2010 Section 179 Tax Incentive Calculator here!

In addition to the calculator we posted a story about the Section 179 changes for 2010 and how they will affect your business. Currently, the laws for 2011 will be less favorable for equipment financing than the current 2010 versions so it looks like a good time to consider new equipment.

Read the story about Section 179 Tax Incentive Changes for 2010 here.

We also have an online lease calculator.  Click here to calculate new lease terms.

Tech Financial Services knows that is is important to keep up with regulations and tax laws affecting the capital equipment market for manufacturers using capital intensive machine tools and otters manufacturing equipment in their business operations. Here is an overview of the changes to the section 179 tax incentives for 2010 and how they affect manufacturing companies.

The latest 2010 tax incentives for manufacturing companies and the revised section 179 American Recovery and Reinvestment Act for 2010.

For 2010, Section 179 will allow a business to expense up to $134,000 of qualified property until purchases exceed $530,000, above which the allowable deduction is reduced dollar for dollar up to $664,000, at which point the Section 179 deduction is totally phased out. Right now for 2011, the expensing limit goes back to $25,000 with an investment ceiling of $200,000. The stimulus increase in first year depreciation that we saw in 2008 and 2009 is gone for 2010, but the effects will be here for a few years yet.

Example of 2010 Tax Stimulus

$500,000.00 New Machinery Equipment Acquired in 2010
$134,000.00 Extended Section 179 Deduction
$ 52,301.40 14.29% Standard Depreciation
$186,301.40 Total First Year Deduction
$ 65,205.49 Cash Savings, based on 35% Tax Rate

Note: Machine tools and fabricating equipment are typically depreciated over 7 years. Consult with your accountant. The above calculations are only estimates; everyone’s tax situation is different.

The experts at Tech Financial have been in the Equipment financing and leasing business for over 23 years. Our combined experience exceeds 50 years in the industry.

We understand the machine tool industry and our programs will give you the flexibility to acquire the equipment you need. Whether you require a loan, a lease, or a custom tailored alternative; we can offer a package that fits within your business plan and best serves your financial needs.

If you have further questions contact us at 414-224-0220 or email Mark with your questions at markc@techfin.net.