If you're one of the millions of Americans who believe the word "tax" is best followed by the word "savings", then we have some exciting news to share with you.
Just about a month ago, the House of Representatives passed H.R. 4457, the American Small Business Tax Relief Act of 2014. Should this bill meet Senate and Presidential approval, the new law would provide some significant tax savings for qualified equipment purchased and installed before the end of the calendar year.
Here's a closer look at what this bill will offer:
HR 4457 extends the Section 179 tax deduction and secures the limit up to $500,000 in qualified equipment purchases priced up to $2,000,000. New, used, and refurbished equipment purchases are all eligible for this deduction.
The table below shows examples calculated using current average prices for a new NeuViz 16 CT scanner from Neusoft and a refurbished Lightspeed 16 CT from GE entered into the Tax Deduction Calculator at section179.org.
Section 179 Savings: CT Scanner
|New NeuViz 16||Refurbished Lightspeed 16|
|Initial Equipment Cost||$289,800||$145,000|
|Section 179 Deduction||$289,800||$145,000|
|Cash Savings (based on 35% tax bracket)||$101,430||$50,750|
|Adjusted Equipment Cost||$188,376||$94,250|
If your facility is even remotely considering an equipment upgrade, we recommend keeping an eye on our website and we’ll let you know what the Senate does with the bill. Passage of HR 4457 will make this year an even better time to consider upgrading your imaging equipment. This is especially true given potentially costly trends in the imaging field like XR-29 compliance for CT, helium efficiency demands in MRI, and the transition from analog to digital X-ray rooms and digital mammography units.
Stay tuned to this blog for an update as HR 4457 passes on to the Senate. If you'd like to get a head start on researching your equipment upgrade, we can help you with that right now: Contact us!