Hardwood mats are a worthwhile investment for any company that owns or leases its own heavy machinery.
Thanks to an IRS tax incentive program, there are opportunities that businesses can take advantage of to get the financing to invest in them. Between now and the end of the year, small- and medium-sized businesses can take advantage of a Section 179 tax deduction that allows companies to write off the full amount of qualifying purchases for things like mechanical equipment, business vehicles and software, notes Section179.org, an informational site online dedicated to providing information on the tax program.
This is perfect for the construction industry where necessary tools, trucks and bulldozers cost big money, but writing off the depreciation of these investments early through Section 179 can equal big savings for businesses. That money can, in turn, be used to purchase hardwood mats for a wide range of jobs, improving worker safety and saving companies significant money versus long-term rentals.
Section 179 can help provide companies with the necessary capital to make these investments.
Here’s how it works: Usually, small- and medium-sized business spread out the deduction for the purchase over a handful of years, but for the past few years — in an effort to spur the economy — the IRS has allowed businesses to write off the entire depreciation cost early as long as what they buy is put into service by the end of the day on Dec. 31.
That is especially huge for construction companies and can result in extra capital to invest in other parts of the business, including protective mats that can extend the life of equipment. Businesses that purchase less than $200,000 of eligible equipment and vehicles each year can deduct up to $25,000 off their taxes through Section 179.
What that means is that businesses can purchase the equipment they need and get a larger tax savings, giving them more money to invest in the company to spur growth. Applying for the deductions is actually quite easy: just fill out Part 1 of IRS Form 4562. While taxes are not a great part of owning a company, armed with the right information, you can use them to your advantage to quickly build your business.
As the end of the year approaches, Ritter Forest Products has a wide range of mats, cribbing materials and more to help your business grow. To learn more, give us a call 24/7 at 800-426-9570 or request a quote online now.
