If you’ve got a list of plant improvements you want to make, or need new equipment that you couldn’t justify spending the capital on, the tax code changes may be just what you need. As of January 1st this year, alterations to the tax code went into effect that could significantly impact your business. The top corporate tax rate was reduced from 35% to 21%, the corporate alternative minimum tax (AMT) was repealed, and a 100% bonus depreciation benefit was implemented for certain qualified assets acquired and placed into service after Sept. 27, 2017. What these changes mean for you are multiple opportunities to reduce your future tax burden, resulting in more available capital. Additionally, you can further reduce your tax burden by investing in qualified assets and taking advantage of bonus depreciation.
While the benefits of the corporate tax rate reduction and elimination of the corporate AMT are straight-forward: less money headed to Uncle Sam this year and more capital left on your bottom line to invest back into the business, the 100% bonus depreciation benefit requires a little more unpacking. If you’ve been contemplating making changes or upgrades to your equipment and facilities, now is the time to do it. In addition to having more capital available to you for these upgrades, you may be able to write off a much larger amount of certain qualified assets in your expenses at the end of the year. But time is of the essence: the 100% bonus depreciation benefit will begin phasing out in 2023.
Essentially, now is the optimal time to make any changes or enhancements in capabilities that might be required to support an investment in alternative packaging, like reusable plastic containers (RPCs). RPCs benefit your company’s bottom line and our planet’s future. In addition to being environmentally friendly by reducing packaging waste, reusable plastic containers also cut down on product waste by holding up better than one-way packaging, resulting in less blemished or damaged product. Additionally, RPCs also increase supply chain efficiencies, saving you both valuable time and money.
Tosca is a leader in reusable packaging because of its superior products, unparalleled service and support, and its ability to most efficiently eliminate both waste and costs from the supply chain. If you’re ready to capitalize on these tax code changes and position your business as an environmentally responsible, forward-thinking innovator, contact Tosca today. Now is the time to invest in your company’s future.