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:

  1. Bonus Depreciation Extended: Allows for immediate write-off of 50% of new fixed assets placed in service this year
  2. Section 179: Allows for immediate write-off of 100% of the cost of a fixed asset acquired during the year, including used items
  3. 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
  4. 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.
  5. 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
  6. 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.

To learn more about how your organization can take advantage of these benefits, contact John Ermer, CPA and Partner at BHC&B

About Brent

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.


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