2019 Tax Incentives

Updating you.

We Can Help You Understand the New Section 179 and Bonus Depreciation Updates.

Section 179 Deduction for 2018 increases to $1,000,000

Businesses purchasing, financing or leasing (Capital or $1.00 types) new and used equipment in 2018 can elect to expense up to $1,000,000 under IRS Section 179. The Section 179 rules are designed for small companies, so the write-off is reduced dollar-for-dollar as total equipment purchases for the year exceed $2,500,000.

100% Bonus Depreciation

The Bonus Depreciation deduction has increased to 100%. Businesses of all sizes can depreciate 100% of the cost of new and used acquired equipment (on an adjusted basis) retroactive to Sept. 27, 2017 and good thru 2022. Unlike Section 179 there is no cap on the amount that can be depreciated under this provision.

Example: $250,000 Total Equipment Cost

Equipment Cost $250,000
2018 Section 179 Deduction $250,000
Tax Savings (89,543 x 21% Tax Rate) $52,500
Equip Cost After Savings (Equip Cost-Tax Savings) $197,500

Contact our Finance Expert

Linda Reed from Old Second National Bank

Linda Reed 

  lreed@oldsecond.com
   (817)946-9726

   Tax Incentive Calculator 
    Quote Tool

Getting the Equipment You Need Just Got Easier

  • Special Low Rates
  • Quick & Easy Application Only
    (up to $500,000)
  • Terms Ranging from 12-84 months
  • Simple Documentation
    Our financing allows you to respond quickly to new opportunities with minimal documentation and red tape. Your application can be approved and you can receive your equipment quickly.
  • 100% Financing
    Our leases and Equipment Finance Agreements cover not only the equipment, but can also include soft costs such as installation, training, shipping and supplies. Banks tend to require 20% down, depleting your cash reserves. We can help preserve your bank lines at competitive rates.
  • Tax and Accounting Benefits
    The IRS does not consider Tax Leases (FMV, 10% Options) to be a purchase, but rather a tax-deductible expense. You may be able to lower your taxable income by deducting lease payments. Non-tax leases ($1.00 buyout) and Equipment Finance Agreements are attractive to customers who desire the tax benefits of ownership and use of Section 179. Consult your tax advisor for the specific impact on your business.
  • Flexibility
    You can structure creative payments including deferred and skip/seasonal plans. Convenient end of lease options are available: purchase the equipment, return the equipment, or renew the lease. We can customize a payment structure that works for you.

The information presented on this page is not specific legal, tax, or accounting advice. Consult an accountant or other tax professional to confirm your eligibility for tax incentives and benefits.

Download Tax Incentives PDF