So fair warning here, we are going to be talking about tax code. Before you tune out...this stuff is really simple and it can help save your business big $$. That means the shiny new 3D printer or 3D scanner you have been eyeing all year may be just within reach with these savings.
Ok, so what is Section 179?
Basically, this section of the US tax code allows a business to deduct the FULL PURCHASE PRICE of equipment in 2020...even it was financed.
To be clear, you could finance a 3D printer with no money down and delayed payments until 2021, and still receive a tax benefit of the full purchase price for the 2020 tax year without spending a single penny in 2021!!
A few years ago, you may have heard of this as the "Hummer Deduction" because a lot of businesses used this to write off big SUVs like Hummers from their taxes. Due to that loophole, vehicle deductions have been limited, but the opportunity for equipment has been expanded.
Here is a real-world example below:
If you work at a small or medium sized business, this may be the exact thing that you team has been waiting to take advantage of all year. It will simultaneously reduce tax liability for the company, and get you the equipment you need to increase productivity. Most tangible goods used by American businesses, including "off-the-shelf" software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction.
It's a win-win and exactly what the folks in Washington had in mind when they authored Section 179.
If you want to learn more, check out Section179.org
Need some more guidance?
No worries, 3DChimera is here to help. Don't hesitate to reach out to firstname.lastname@example.org with any specific questions for your application.