Tax Cuts and your Forklift Fleet

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.

In addition to this new potential windfall, tax breaks for energy efficiency are still in effect as well.

Certain forklifts running on propane or electricity may be subject to tax incentives and some states, like California and Washington offer incentives, grants and credit programs for the use of alternative fuels. The process of saving money in the purchase and implementation of your forklift fleet seems complicated on the surface, but our accountants and finance partners can help you navigate the jungle of tax law and incentives.

If you believe your company can benefit from a new forklift and want to take advantage of the new tax laws, do not hesitate to reach out to our experts and financial wizards at (704) 842-3242. We’ll find you the biggest savings, the best deals, and the most advantageous financing plan for your company.