Everyone knows that a quality process chiller is not cheap! Unfortunately, these machines are a huge necessity in many industries. Companies will look for more cost effective ways to keep their chillers running to full potential for as long as they can, rather than purchasing new equipment. Over time, choosing to hold off replacing a process chiller that is heading towards the end of its usable life can end up costing the owner more, if you consider money spent repairing an old machine vs. investing that same hard earned money in something new.
Thanks to the recently-enacted Jobs Act of 2017, which came into effect January 1, 2018, process chillers can now be immediately expensed as compared to needing to depreciate the capitol costs over as many as seven years.
What exactly does this mean? For example…in the past if a business owner was to install a new process chiller unit for a total cost of $14,000 (equipment and labor for installation), the owner could only claim approximately $2,000 in depreciation expense each year over a 7-year period. With the new tax law the same owner can now deduct the entire $14,000 cost of the equipment immediately at the top marginal tax.
Legacy Chillers is a quality manufacturer of process chillers. We also assist current customers in need of equipment upgrades. If you haven’t already, please share this new information with your customers and clients to help them see how the new tax laws can save them money.
IMPORTANT NOTE: The above information is NOT tax advice. Please verify the above information with your tax professional or CPA. For information about our products and how a Legacy Chiller can help your business, visit our website at www.legacychillers.com