Big Tax Incentives for
Purchasing Machinery in 2008

Let Uncle Sam Subsidize Your Machine Tool Purchase

There has never been a better time to invest in new equipment. There are incredible tax incentives for 2008 that allow you to take accelerated write-off of your capital equipment purchases. This may allow you to:

  • Save as much as 40% on equipment under $250,000 including Piranha Ironworkers, Press Brakes and Shears, Bertsch Bending Rolls, Whitney Plasma Cutting Machinery and Portable Presses.
  • Save as much as 30% on Whitney Combination Plasma-Punch Fabricating Centers.
Total Capital Investment
Section 179 Deduction
50% Bonus Depreciation
Standard Depreciation
Total First Year Write-Off
Tax Rate
Tax Savings
% Savings
$25,000
$25,000
$0
$0
$25,000
40%
$10,000
40%
$50,000
$50,000
$0
$0
$50,000
40%
$20,000
40%
$100,000
$100,000
$0
$0
$100,000
40%
$40,000
40%
$150,000
$150,000
$0
$0
$150,000
40%
$60,000
40%
$200,000
$200,000
$0
$0
$200,000
40%
$80,000
40%
$300,000
$250,000
$25,000
$3,573
$278,573
40%
$111,429
37%
$400,000
$250,000
$75,000
$10,718
$335,718
40%
$134,287
34%
$500,000
$250,000
$125,000
$17,863
$392,863
40%
$157,145
31%
$600,000
$250,000
$175,000
$25,008
$450,008
40%
$180,003
30%
$700,000
$250,000
$225,000
$32,153
$507,153
40%
$202,861
29%
$800,000
$250,000
$275,000
$39,298
$564,298
40%
$225,719
28%
$900,000
$150,000
$375,000
$53,588
$578,588
40%
$231,435
26%
$1,000,000
$50,000
$475,000
$67,878
$592,878
40%
$237,151
24%

Profitable metal fabricators who file U.S. federal income tax forms and invest up to $1 Million in capital equipment purchases can receive big benefits from this program. The benefit involves accelerated write-off of the equipment in Tax Year 2008. The tax write-offs come from three sources:

1. Section 179 Federal Income Tax Deduction: this allows manufacturers to expense the first $250,000 (almost twice the 2007 limit) of equipment purchased in 2008 from their taxable income. This benefit provides maximum benefit when the total investment is equal to or less than $800,000, and phases out on a dollar-for-dollar basis to $1,050,000. It is not available for use when total capital purchases exceed $1,050,000.

2. 50% Bonus Depreciation: This special write-off is available for new equipment purchases in 2008 only. It allows manufacturers to write-off an additional 50% of their capital investment during the first year.

3. Standard Depreciation: Companies can still take their standard depreciation after taking advantage of the above two programs.

These savings are the result of accelerated write-off of your capital equipment purchases. Not everyone will qualify for these savings. The information in this page is offered as general guidance and is not intended as specific legal, tax or accounting advice. These calculations are only estimates and everyone's tax situation is different. Always check with your accountant to confirm eligibility for tax benefits.


Let us help you save money. For more information please fill out the following form.

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I am interested in the following products:
Whitney Plasma-Punch Combination Machines
Whitney ADVANTAGE-II Plasma Cutting Tables
Whitney Portable Presses
Whitney Precision CNC Fabricators
Whitney PlateLASER
Piranha Ironworkers
Piranha Press Brakes
Piranha Shears
Bertsch Plate Rolls
Bertsch Angle Rolls

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