If you are considering purchasing manufacturing ERP software before the end of the year, Section 179 manufacturing erp software tax incentive from the government should help make that decision easier for you. You can save up to 35% on the purchase of ERP software executed before December 31, 2013. Take a look at some sample numbers highlighting what you could be saving on your purchase (or punch in your own numbers with the government’s Section 179 Calculator here):
Crest Capital does an excellent job defining and illustrating the benefits of the tax law, as well as cover the changes for this year’s deductions:
“Section 179 is the provision of the US Tax Code for business equipment deductions. It´s quite generous, and allows your business to deduct the full purchase price of equipment bought (and put into use) during the 2013 calendar year. Almost all legitimate business equipment qualifies: machinery; many vehicles; electronics (such a computers, laptops, tablets, and related peripherals); business software; office equipment and office machines; office furniture (like desks, chairs, tables, and fixtures); and many other types of tangible equipment. If you need it in your business, Section 179 likely includes it.
There are a few important enhancements in effect for 2013 you should be aware of:
Section 179´s deduction was scheduled to go down to $25,000 for 2013. However, the H.R. 8: American Taxpayer Relief Act of 2012 legislation has boosted 2013´s total deduction to $500,000. The threshold of total equipment purchased is now $2,000,000. And there´s still a bonus depreciation of 50%. However, this is the final year for these kinds of limits – Section 179 is slated to decrease in 2014 (all the way down to $25,000!)”
If you’re considering purchasing a new manufacturing ERP software solution, or just a few more licenses for your current system, in January, February, or March, you might want to consider moving that purchase up to December. Otherwise, you could be missing out on $50,000, or more, worth of savings for your business. If you have any questions about Section 179, ask your tax advisor now, before its too late.