Light Machines - an intelitek, inc. division

Major new tax incentive for new machine tool orders!

 



Congress has passed President Bush's jobs and economic growth tax relief bill, which contains a new 50% expensing allowance for machine tools and other equipment ordered between 5/6/03 and 12/31/04 and placed in service by 12/31/04. 

This replaces the temporary 30% expensing allowance enacted in 2002.

Here is an example of how the new provision works for you:

If you order a new machine tool costing  $100,000 (as an example) you can write off 57% of the asset in the first year and 69% over two years (compared with 14% and 39% under the old law). 
This adds up to a first year tax cut of $15,050 on a $100,000 machine! 

    New law Old Law Difference
1st year Deduction % 57% 14% 43%
1st year Deduction Amount $57,000 $14,000 $43,000
1 year Tax Saving $19,950 $4,900 $15,050

* Example assumes customer is in seven-year asset depreciation class.
For customers in the five-year class, the first year tax saving is $15,400
on a $100,000 machine, and the tax cut is $8,400.


From a fact sheet produced by AMT-The Association For Manufacturing Technology

For more information contact Matt Parker at mparker@intelitek.com
or Richard Saucier rsaucier@intelitek.com.