The latest tax break announcement by the US government is perhaps what you’ve been waiting for. This tax deduction applies to any equipment companies purchase and put to use by the end of 2021.
That includes collaborative robots, which already offer an excellent return on investment. Automating your production with collaborative robots can help your business in many ways. For example, they helped other companies like yours fill their worker shortage, become more efficient, or improve quality.
With the 2021 tax deduction, your company can save by investing in a collaborative robot, and here’s how!
About Section 179
The US government developed a special program that motivates small and medium-sized businesses to invest more in themselves.
Introducing Section 179 – a tax break program designed for purchasing, leasing, or financing equipment.
This program helps SMEs to make profitable financial decisions by investing in vehicles, equipment, or even software tools.
The most interesting feature is that Section 179 can even deduct the total amount of your purchase without you having to pay the full amount in 2021. That means that the total amount you save in taxes can exceed the equipment payments you make.
Any qualified equipment or off-the-shelf software put into service by December 2021 will experience a 100% tax deduction. You don’t even have to purchase the equipment, as the same rule applies to financed and leased equipment.
Therefore, you may be eligible for a significant federal tax deduction that’ll stretch your equipment budget and increase your productivity.
Why Choose Collaborative Robots?
Collaborative robots, also known as cobots, are the latest developments in automation. They are making the entire production and manufacturing process simpler and more flexible. As a result, cobots are the ultimate tool even for small and mid-sized businesses.
(Source: Universal Robots)
Every company can benefit from investing in collaborative robots, regardless of the industry they belong to. Cobots can automate your production, fill your worker shortage, improve your productivity and the quality of your products.
Because of their numerous uses, collaborative robots are part of the qualified equipment Section 179 supports. If you buy a cobot and put it to use by December 2021, your company will experience up to 100% tax reduction for this piece of equipment.
With that in mind, collaborative robots might be the ideal piece of equipment to invest in by the end of 2021. As of right now, Olympus Controls can supply you with Universal Robots cobots for automating your operations. However, keep in mind that there is actually an 8 week lead time for shipping, so don’t wait to take advantage of this opportunity.
The Tax Deduction Calculator
On the government website, you’ll find a calculator. This tax deduction calculator helps you calculate the exact amount of money you can save. It uses the evaluated equipment cost and the assumed tax bracket.
For example, if you spend $10,000 on your qualified equipment and the assumed tax bracket is 35%, your lowered equipment cost will be only $6,500. Additionally, you’ll have a bonus depreciation deduction of 100% in 2021.
Therefore, the tax deduction calculator can be of great help when deciding on a specific piece of equipment.
The Bottom Line
To conclude, now is the perfect time to invest in your business by taking advantage of Section 179. Investing in a collaborative robot will save you a lot of money, and the equipment will become profitable in a shockingly short period.
Don’t hesitate to reach out to our team at Olympus Controls to talk about the potential savings a universal robot can bring you.