Per legislation passed by Congress and signed by President Barack Obama earlier this year to temporarily sidestep the “fiscal cliff” spending cuts and tax increases, the tax advantage for business that purchase new equipment was not only extended through the end of the year, but it increased the amount that could be written off of taxes from 20 percent to 50 percent.
All good for fleets looking to purchase equipment, right?
Maybe not, says a source in a story over on CCJ sister site Successful Dealer, who says that the other 50 percent that can’t be written off is still a major concern for companies that are strapped for cash as-is and would struggle to afford new equipment regardless of the incentive.
Moreover, fleets who purchase lots of trucks, trailers and other equipment throughout the year may zap up the $225,000 cap quickly with just a few purchases.
However, other sources say fleets can use it to their advantage more so than what might appear to the naked eye, they just have to know how the system works.