Maximize Your 2024 Tax Savings: Section 179 Benefits for Steel Fabricators and Manufacturers
As a steel fabricator or manufacturer, investing in new equipment is essential for staying competitive and maintaining efficiency. In 2024, Section 179 of the IRS tax code offers significant tax incentives that can help you upgrade your operations while cutting costs. Here’s how you can take full advantage of the Section 179 deduction to improve your bottom line with new and used machinery.
1. Increased Deduction Limit: Up to $1,220,000
In 2024, the maximum deduction limit for Section 179 was raised to $1,220,000. For steel fabricators and manufacturers, this means you can write off the cost of machinery, material handling equipment, and other qualifying assets that power your production line. Whether it’s upgrading your fabrication machinery for your shop, this deduction provides substantial savings that can be reinvested back into your business.
Learn more about Section 179 limits here
2. Higher Spending Cap: Now $3,050,000
With the spending cap raised to $3,050,000, steel fabricators and manufacturers have more flexibility in equipment purchases. You can invest in multiple machines and fabrication machinery without worrying about losing out on the deduction. Whether you’re buying a single piece of equipment or several, this limit gives you more purchasing power to support growth without taking a heavy tax hit.
3. Bonus Depreciation: 60% in 2024
On top of the Section 179 deduction, manufacturers and steel fabricators can also take advantage of 60% bonus depreciation on equipment purchased and placed into service between January 1 and December 31, 2024. This includes both new and used equipment, giving you more flexibility in how you acquire your machinery. Whether you’re expanding your production line or replacing aging equipment, this bonus depreciation can help reduce the financial burden, allowing you to keep more capital in your business.
Explore bonus depreciation rules
Why Section 179 Matters for Steel Fabricators and Manufacturers
Steel fabrication is an equipment-heavy industry, and staying up to date with the latest machinery is critical for maintaining production efficiency and quality. The Section 179 deduction allows fabricators to write off expensive equipment purchases immediately, reducing taxable income and improving cash flow. With the higher deduction limit and spending cap, 2024 is the perfect year to make significant investments in your production line without incurring heavy tax penalties.
What Qualifies?
To qualify for Section 179, the equipment must:
Be purchased and placed into service between January 1 and December 31, 2024
Be used for business purposes, directly related to steel fabrication or manufacturing operations
Include new and used equipment for you shop’s fabrication machinery
Maximize Your Savings in 2024
For steel fabricators and manufacturers, the Section 179 deduction is a game-changer when it comes to upgrading your operations. The increased deduction limit, higher spending cap, and bonus depreciation offer powerful tax benefits that can significantly lower the cost of new equipment, allowing you to invest in the future of your business.
Now is the time to plan your equipment purchases for 2024. Consult with your tax advisor and start strategizing to maximize your Section 179 savings and boost your bottom line.
Need help deciding which equipment upgrades make the most sense for your shop? Contact us today to learn about our cutting-edge solutions designed to streamline your operations.
For more details on Section 179 and how it applies to your business, visit: