POMONA, Calif. — Institutional and industrial laundry operations may qualify for tax deductions on capital investments, such as new or used equipment, under Section 179 of the IRS tax code, reminds Consolidated Laundry Machinery (CLM).
Through the end of 2013, operations can “receive up to $500,000 in tax deductions” on capital equipment, says CLM President Martin Pharis. “This government incentive allows businesses to deduct the full amount of the purchase price (up to $2 million), resulting in significant savings on the bottom line,” he adds.
The American Taxpayer Relief Act boosted Section 179 limits for 2013, allowing businesses to write off up to $500,000 of qualified capital investments subject to dollar-for-dollar phase-out once these investments exceed $2 million in the 2013 tax year, according to CLM.
“This is a great opportunity for smaller companies, or for those spending less than $2 million a year in capital expenditures, to see a direct impact on their [return on investment],” says Pharis. “But the clock is ticking and this incentive runs out at the end of the year.”
Pharis suggests utilizing the “Section 179 Calculator” at www.section179.org to get an “accurate picture” of the potential tax savings.