Tax Incentives

Tax Credits Set to Expire May Benefit Cleaning/Building Professionals

Tucked away in the current tax code is a significant savings building service contractors and facility managers should know about and take advantage of, according to Michael Schaffer, a senior executive with Tacony's Commercial Floor Care division and president of Tornado Industries.

According to Schaffer, those considering investing in new cleaning equipment and machinery for their businesses or facilities may be able to take advantage of special tax savings targeted to expire or decline significantly in 2012.

The regulations stipulate that businesses that purchase qualifying products this year and place them into service no later than Dec. 31, 2011, are eligible to receive a bonus first-year deduction allowance of 100 percent of the asset cost.

"Waiting until 2012 to make these purchases may result in a significant loss in the write-off amount," says Schaffer. "View this as a "gift" from the government and one almost any business can really benefit from.

Schaffer adds that end users should consult with their tax advisors to learn more specifics about the tax savings and determine how they can take advantage of them.

Don’t Delay Capital Goods or Equipment Purchases

If you've been thinking about investing in new equipment or machinery for your business, now may be the time to buy. Depreciation and expensing deductions for these investments are targeted to drop significantly in 2012. Businesses that purchase qualified assets this year and place them in service by December 31, 2011 are eligible to receive a bonus first-year depreciation allowance of 100% of the asset cost. Waiting until 2012 to put these assets in service may reduce your bonus first-year depreciation allowance to 50% of the asset cost.

For an overview and illustrations of the advantages for manufacturers in Section 179 of the IRS Tax Code, visit www.section179.org or see the recap provided on the web site of the Association for Manufacturing Technology
( www.amtonline.org ). Consult your financial and tax advisors to discuss details of the impact of the legislation on your justification for the purchase of a Tornado® floorcare machine in 2011.