Take Advantage of Section 179 PCBA Equipment Write-Offs

The prospect of buying a full turnkey line to bring your PCB assembly in-house can be a daunting one. Luckily, there are an array of options available to make the transition easier for you. One solution to your issues may be a Section 179 deduction. In 2018, Section 179 has been updated to allow you to take advantage of a 100% first-year write-off.

Making a Section 179 deduction work for you isn’t nearly as difficult as you may think. While initially intended to allow businesses to write-off the purchase of vehicles, Section 179 has been expanded to offer greater benefits to small businesses making equipment and machinery purchases. As SMT assembly machinery falls under the purview of businesses covered by Section 179, you can take advantage of this deduction for any Manncorp machinery you purchase in 2018.

Serious Tax Advantages

Section 179 can make a difference for you in bringing your production in-house. You can maximize your savings by writing off the entirety of your purchase this year. Normally, you would need to take the next several years to write off your machinery purchase. You would need to write off the full cost of the unit small percentages at a time. In 2018, however, Section 179 will allow you to write off the total amount (up to $1,000,000) right away. The deduction begins to phase out dollar-for-dollar after $2,500,000. These savings are a boon to small businesses specifically.

The combination of the new import tariffs and the benefits of a Section 179 deduction make this the perfect time to invest in your own business’s success. With only a few months left in the year, it’s important to act quickly to take full advantage of possible Section 179 deductions. If you’re curious about how much a deduction this year can save you, use this convenient Section 179 calculator.

Learn About Savings with an Example Line

This data assumes a $200,000 equipment purchase, which is roughly the price of one of our best-selling SMT lines, which provides assemblers with fully inline solution that requires little operator interaction to function. An automated production option, this example line can assemble roughly 10,000 components per hour. As you can see, a Section 179 deduction can save you money on your purchase this year.

You could also consider financing your SMT equipment purchase. This helps you make an investment in your business with a minimal up-front cash expenditure. As long as you make your initial payment before the year's end ($3,982 on a 60-month lease in this example. A down payment may be required) you can write off the entire equipment purchase. With a deduction of $70,000, this means that, effectively, you can operate your equipment for almost 17 months before having to make another payment.

Invest in Your Own Success with Our Machines

This year presents an opportunity to take control of your production process that you shouldn’t pass up. With Manncorp on your side, the transition to in-house board assembly is easier than it’s ever been. We can offer you help in choosing the perfect custom line for your business. We’ll also keep in touch with you throughout the conversion process to make sure your transition is as seamless as possible.

Ask for a consultation on new production lines for your circuit boards. Just send your bill of materials to Chris Ellis (cellis@manncorp.com).