The government has done you a favor…are you taking advantage of it? 2008 may be the best time to invest in capital equipment and boost your competitive edge. The Economic Stimulus Act of 2008 includes a couple of incentives for businesses that may lower the cost of investing in new machinery. First, companies that spend less than $800,000 a year on capital assets can now expense (deduct) the first $250,000 of purchases made in 2008. Second, for companies of any size, the law allows a 50% expensing allowance (a.k.a. accelerated depreciation) for capital equipment bought and installed during 2008.
Individually or combined, these incentives can help you reap significant tax advantages. And, as the economy continues to soften (despite it being a campaign year), companies will need to be financially creative to flourish.
But the benefits of improved technology will pay you back for much longer than just this year. Upgrading your equipment will generate better productivities because of the higher speeds, lower material waste and quicker changeovers with today’s machines.
If you’ve had a capital improvement project on the back burner, now is the time to finally put it in the oven.
Sal Pellingra (who was mentioned in my June editorial as coiner of the term “quasi” rigid) is the innovation and marketing director at Ampac Flexibles, not Amcor as I had it. My apologies, Sal! Thanks for being so good-natured about the error. This proves that I’m human and that perfection is still just out of my reach. Also in our June issue, Ampac Flexibles should have been No. 16 on our list of the Top 25 Converters, bumping everyone below that down one slot. The company posted sales of $330 million in 2007. Unfortunately, we received the data too late to include in this year’s report.
I appreciate the opportunity to set the record straight on both counts.