The Section 179 tax credit is a great opportunity for manufacturers to save big on new equipment investments through strategic tax deductions. And we’re here to help you understand and fully leverage your tax credit for 2023. This comprehensive article will explore who and what Section 179 applies to, qualifying machine-specific purchases that will help increase your throughput and reduce your tax liability.
What is Section 179?
Section 179 is an IRS tax code designed to empower businesses by allowing them to deduct 80% of the purchase price of new qualifying equipment during the tax year of acquisition. This incentive isn’t limited to specific industries; it’s a versatile tool for businesses of all types and sizes. Section 179 provides a significant opportunity to boost capacity and revenue while simultaneously reducing the tax burden.
Eligible Purchases for 2023
The types of assets eligible for this tax credit change from year to year. In 2023, businesses have a wide array of eligible assets that qualify for Section 179 deductions.
Machinery and Tooling: Businesses can deduct 80% of the purchase price of equipment used for manufacturing, production, and other operational processes under Section 179. Machining-specific purchases that qualify for Section 179 deductions encompass a diverse range of machinery, including EDM machines, 3D printing technology, and milling equipment. To maximize the advantages of this tax incentive, new machine tools must be operational by the end of the tax year.
Vehicles: Vehicles, such as work trucks and specialized company vehicles, are also eligible for Section 179 deductions in 2023. This is particularly valuable for companies that rely on a fleet of vehicles to conduct their operations.
To qualify for this tax credit, new machines must be purchased and delivered before December 31st. That means finding ready-to-ship machine tools is a critical part of your strategy to maximize your Section 179 benefits. As your dedicated machining partner, we have a variety of machines ready for immediate shipment.
If you’re looking to scale your mold-making production fast, we have a large inventory of state-of-the-art sinker EDMs ready to ship and deliver.
The new AL40G, AL60G, and AL80G are the next-generation die-sinker EDM that fuses discharge control technology, advanced linear motor control, and the latest AI.
X-Travel: 15.75” (400 mm)Y-Travel: 11.81” (300 mm)Z-Travel: 10.63” (270 mm)
X-Travel: 23.62” (600 mm)Y-Travel: 16.53” (420 mm)Z-Travel: 14.56” (370 mm)
X-Travel: 33.46” (850 mm)Y-Travel: 20.47” (520 mm)Z-Travel: 16.53” (420 mm)
Check out our complete list of machines for more options. If we don’t currently have a machine in stock, we may still be able to deliver before December 31st.
Wire EDMs: Wire EDM machines are designed to elevate machining capabilities, offering unparalleled accuracy.
Sinker EDMs: Engineered for optimal performance, sinkers ensure precision in every aspect of your machining process.
Small-Hole EDMs: Experience efficiency and accuracy in small-hole drilling with Sodick’s Small-Hole EDM machines. These machines are tailored to meet the demands of intricate tasks, providing reliable and precise results.
Metal 3D Printing Machine Tools: Sodick’s Metal 3D Printing solutions excel in providing this cutting-edge technology, enabling businesses to produce customized metal components with exceptional accuracy and efficiency
High-Speed Milling: Essential for shaping and finishing parts with utmost precision, High-Speed Milling machines are at the forefront of accuracy in machining.
Advanced Machine Partnership
The key to maximizing your Section 179 benefit is to partner with a reliable supplier for high-quality machining solutions that propel your business forward. Our team is prepared to help you make strategic investments before the year ends.
Request a quote today to get started. Our team will promptly contact you to help find the best machine solution for your business.