GPI Machine Tools

Tax Incentives –
Tax write-off for manufacturing companies increased to $128,000 for 2008. For as little as 4% of your equipment cost, you can save thousands of dollars on your taxes.

Your first year's tax savings could exceed your first year's machine payments! Equipment leases that include a $1.00 purchase option qualify for the Federal Section 179 deduction and regular depreciation. Companies may also be eligible for additional state and local tax deductions plus interest deductions. Companies purchasing equipment now could see their tax savings cover their first year's payments!

Always check with your accountant or financial advisor to verify tax or accounting issues and any tax benefits. $128,000 write-off Section 179 Federal Income Tax Deduction: This deduction allows a company to deduct the first $128,000 of equipment (Section 179 Property) purchased in 2008 from their taxable income. For companies purchasing (or leasing - with a $1.00 buy-out lease) up to $510,000 of equipment in 2008, this deduction is available in full. It then phases out on a dollar-for-dollar basis between $510,000 and $638,000 and it is not available for companies purchasing over $638,000 of equipment in 2008. However, companies can finance purchases over $510,000 with an operating lease and may still be able to claim this deduction.

Standard Depreciation –
Additionally, companies can take their standard depreciation deductions on the adjusted basis of qualified equipment. Machine tools and fabricating equipment are typically depreciated over 7 years