March 17, 2018
|by John Hayes, VP Marketing and Sales|
Under accounting rules, an operating lease is a tax-deductible overhead expense and lease payments are deducted from corporate income. Also, leased equipment does not have to be depreciated over years.
Section 179, one of the most important tax codes, allows manufacturers to deduct all (or part) of the cost of equipment that is leased and put into place before the end of the year. The only stipulation is that the equipment needs to qualify for deduction. The current Section 179 tax deduction limit is $500,000 on qualifying equipment, and the phase-out is $2 million. This was enacted through the Protecting Americans from Tax Hikes Act (PATH) that was signed into law in December 2015. In addition, the bill allows businesses to depreciate 40 percent of the cost of eligible leased equipment in 2018 and 2019.
Companies should get pre-approved for leasing Vecna Robotics AGVs with 24/7 IIoT Monitoring now to begin moving more and to move ahead by putting our advanced systems to work for you.
To get pre-approved, visit our Leasing page.
About this Series
Vecna Robotics understands the critical role of leasing AGVs. AGVs can be an expensive upfront proposition. Vecna Robotics has created a simple way to get pre-approved for AGV leasing and is the only company to include 24/7 IIoT Monitoring in the program. This means sincere MODEX AGV buyers can cut through the red tape and drive financial efficiency immediately. Over the next several weeks, Vecna Robotics will present this blog to explore how leasing is an efficient way implement AGV systems. These elements will help strengthen ROI calculations, explain the journey from CapEx to OpEx, and detail how leasing provides operating ROI measured in months not years.
John Hayes, Vice President of Marketing and Sales for Vecna Robotics, is a widely respected thought leader for the manufacturing, distribution, and material handling industries and a Supply & Demand Chain Executive “Pros to Know” recipient. For more than twenty years he has been evaluating, designing, developing, and implementing innovative software and hardware solutions with a particular focus in the AGV (automated guided vehicle) space. Contact John at email@example.com.