With the implementation of the American Recovery and Reinvestment Act of 2009 (ARRA), purchasing and using industrial packaging equipment can be more affordable and cost-effective for your business. For all new industrial equipment placed into service between  January 1, 2009 and December 31, 2009, more than half the value of the equipment can be depreciated in the first year. With this accelerated depreciation on industrial equipment, your tax savings will increase by the thousands. Take the following scenario into consideration:
Say you purchase 3M or Signode equipment that costs a total of $100,000. The old tax laws consider the depreciation within the first year at only 14.29%, which saves you $4,859 in taxes. This is no small sum – but with the American Recovery and Reinvestment Act, that depreciation is in excess of 57%. Your $100,000 Signode or 3M product is considered to be worth $57,145 by the end of the first year, which results in savings of $19,429. That’s an additional $15,000 in saved tax dollars that you can use to reinvest in new industrial packaging equipment, including dependable and affordable Lantech, Signode, or 3M products.
In addition to these benefits, the American Recovery and Reinvestment Act also increases the small business expensing election for qualifying small businesses. For tax years beginning in 2009, you may be able to expense up to $250,000 of industrial packaging equipment placed into service during the 2009 tax year. This means that if you needed several expensive Signode strapping machines, stretch wrappers from Lantech, or case erectors from Combi, you may receive additional tax benefits to offset some of those costs.
Consult your tax advisor for more details on the potential savings of the ARRA for businesses that use light, medium, or heavy duty industrial equipment. Whether you’re a medium-sized industrial facility in Atlanta or you have several warehouses spread throughout the United States, these tax breaks on industrial packaging equipment are there to help you maintain, and increase, your profits while expanding your business.
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