In the spirit of Fathom’s commitment to the manufacturing industry, I wanted to bring to your attention some new Federal and State tax benefits available to Connecticut Manufacturers.
At the January New Haven Manufacturers Association meeting, John Ermer, Partner at BHC&B CPA/Consultants presented details about the 2016 tax changes and benefits. Here are the highlights:
- Bonus Depreciation Extended: Allows for immediate write-off of 50% of new fixed assets placed in service this year
- Section 179: Allows for immediate write-off of 100% of the cost of a fixed asset acquired during the year, including used items
- R&D Credit: This is now permanent and available for companies of all types with qualified research expenditures for designing, developing or improving products, processes, techniques, formulas, inventions or software
- Final Repair Regulations: Accelerate deductions and avoid having to depreciate asset costs over a period of years by taking advantage of the new $2500 de minimus capitalization threshold effective in 2016.
- CT Fixed Capital Investment Tax Credit: Credit of 5% for amounts paid or incurred by a corporation for any new fixed capital investment installed in Connecticut
- Apprenticeship Training Tax Credit in Manufacturing Trades: Tax credits are available for corporations that employ on a full-time basis apprentices who are receiving training
So, what does this mean? For one, this year might be a good one to make equipment purchases you’ve been putting off for a while. It might also be time to ramp up your apprentiship programs. Finally, now that the R&D credit is permanent, you can feel more confident investing in innovation and improvement.
Brent works with leaders to design futures worth fighting for. A partner at Fathom, he champions an approach to strategic planning, employee engagement, leadership succession and market differentiation that prioritizes people and relationships. As a result, his clients don’t simply plan their futures, they bring them to life through the energy of organization-wide involvement in, and commitment to, generating valuable businesses that matter.
Want more from Fathom?
Sign up to receive updates about our articles.