Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment from gross income from the year the equipment was purchased, rather than writing off the depreciation of the equipment over several years. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Without Congressional action, the National Pest Management Association (NPMA) reports, the Section 179 deduction level will remain at the pre-2007 level of only $25,000 rather than the previous $500,000.
“Qualifying equipment” includes machines, etc.; purchased for business use, tangible personal property used in business; air conditioning and heating units; business vehicles with a gross vehicle weight in excess of 6,000 lbs.; computers; software; office equipment and office furniture.
“The Section 179 deduction is widely used by our industry, and this has been an important issue for our industry, including highlighting it at our Legislative Day this past March,” notes Andrew Architect, NPMA’s chief industry relations officer. “We are continuing to push this issue with Congressional offices, and are working with other industries on this very important tax benefit.”
The NPMA urges pest professionals to send their Congressional representatives a note urging them to act to raise the Section 179 deduction level. The association has a page set up where you can send your message online: NPMAPestWorld.org/public-policy/take-action/take-action/?vvsrc=%2fCampaigns%2f43564%2fRespond.