Companies have until the end of June this year to take advantage of the Government’s 30% investment allowance tax deduction. However, that 30% is only part of a larger opportunity. According to Craig Kenchington, General Manager, Marketing at Crown Equipment, the current economic climate has delivered a financial ‘window of opportunity’ that offers incentives not seen for decades.
The 30% investment allowance is only one of a number of factors that have converged at this time. Interest rates are at their lowest point for nearly four decades, and companies can still apply the tax deduction for depreciation on the full purchase price of a lift truck. This means that with depreciation combined with the investment allowance, tax deductions can be in the vicinity of 50% of the purchase price in the first year.
There are some conditions that apply to the Government investment allowance, such as minimum purchase for small businesses and a minimum for large businesses. So long as conditions are met, orders placed before the end of June, for delivery before the end of June 2010, can qualify for the tax deduction.
According to Crown Equipment , this would see a company go into the new financial year with lower costs and with totally new equipment, something that brings both equipment reliability and financial certainty to fleet operations and management.