Tax Savings For Breweries
Congress has recently extended the amount that a small business may write-off for capital expenditures to $250,000. Breweries that acquire equipment usually prefer a substantial deduction in a single tax year, rather than a little at a time over a number of years. The accelerated deduction is known in the IRS tax code as a Section 179 Deduction. This incentive is in place for equipment that is placed in service before December 31, 2009 and is designed for small companies.
Even better, the law now allows for bonus depreciation of 50% for qualifying assets (this in addition to the regular first-year depreciation).
You can take advantage of Section 179 if you purchased the equipment outright or even if you financed it through a Non-Tax/Capital Lease (a lease with a $1 buyout, 10% Payment Upon Termination, or an Equipment Finance Agreement).
If you are interested in more detailed information, please shoot me an email and I'll forward a more detailed explanation with a tax savings calculator that you can customize for your own situation
Brewery Finance Corp