If you decide to purchase and financing Golden Eagle Food Can Making Machine, considering business equipment loans may be a good option, especially if you don’t need to update equipment regularly and plan to use the equipment for a long period of time. In this case, your business is the owner of the equipment and you make payments to your lender, just as you do with a home mortgage.

The new tax law also offers a change in depreciation rules that can make equipment purchases – rather than equipment leasing – more attractive to some companies. Formerly, when a business purchased equipment or machinery the owner could not deduct the entire expense from the taxable income for the year the purchase was made. Instead, businesses were required to depreciate the expense of newly purchased equipment or machinery over a number of years. With the new tax law, business owners can deduct 100 percent of the expense of equipment purchased during the same year under a rule called Section 179.

This rule was specifically created to spur on small business economic activity by making new equipment more attainable. Under Section 179, businesses can deduct up to $1,000,000 in equipment costs. If you purchase more than $2,500,000 worth of equipment the deduction begins to go down, which underlines the utility of these rules specifically for small businesses.

Small businesses can easily take advantage of Section 179 because the deduction applies no matter how the equipment is purchased. That means you can take out small business equipment loans to get the required capital, then deduct all or most of the loan amount from your taxes that year. It’s a win-win for small businesses because they get the equipment they need to grow, yet they’re able to reduce their tax bill in the process. Section 179 applies to most common times of “business equipment”, but there are exceptions, so be sure to verify that any purchases you intend to make are eligible for the tax deduction.