In life, timing does matter. How many times have you thought that you were at the right (or wrong) place at the right (or wrong!) time? We’ve all felt like that and there are times when you have no control over timing. But sometimes there is a measure of control even if you have to work fast.
Timing affects business decisions too as we found out at the close of 2014. Like most businesses, we are continually striving for improvement. Improving our business model is multifaceted; it includes continued investments in personnel and training, attention to customer service, and maintaining and growing our capabilities and facilities.
Paying close attention to laws and taxes is vital to business decision making. Inattention to changes in tax credits could mean disaster to a company’s bottom line. As we manage our business we are very aware of current legislation and take into account how tax credits will impact us, and eventually our customers. This past year we were closely watching what would happen with the federal tax credits that had expired at the end of 2013. It was a waiting and watching game all year. If Congress renewed the tax breaks for 2014 late in the year we knew that we had to act quickly.
That’s where timing comes into play. In December, Congress extended more than 50 tax breaks for businesses until the last day of 2014. Within this extension was section 179 expensing, a major tax advantage for all businesses. Section 179 allows a maximum deduction of $500,000 for tangible business equipment. The catch was that to take advantage of the full deduction, the equipment had to be bought and put into service by Dec. 31, 2014.
Like most manufacturers, we were hoping to expand our capacities to capitalize on this benefit. And, we were ready to act and take advantage of the deductions to add additional equipment. We purchased and installed four new pieces of equipment that will enable us to increase current manufacturing services.
With this new equipment we are starting out 2015 on a positive note. Our goals remain the same as ever as we continue to provide high levels of customer satisfaction and continued growth and expansion. The timing was right and we, like other business owners, were ready to take advantage of the benefits.
References:
http://mibiz.com/item/22105-congress-extends-key-business-tax-credits-through-2014