Plenty of questions these days about the tax cut recently signed into law by the current administration. While it hasn’t been without controversy, it’s good news for industries that move heave materials.
One of the purposes of the bill is to increase business investments. Forklifts are among the types of capital investments, along with computer systems, cranes and other heavy equipment that businesses can spend money on now and receive a tax break later.
The Tax Cuts and Jobs Act provides an opportunity for businesses to immediately expense the cost of capital equipment purchased and put into service before January 1, 2023. The ability to fully expense purchases rather than amortizing the equipment over a long period of time lessens the long-term financial cost of buying new equipment.
Effectively, the bill reduces the tax burden in the first year of a forklift’s tenure with your business, freeing up cash to reinvest in your business.