IIE Los Angeles

How Will the Tax Bill Affect Manufacturers?

Industry Week ran an interesting story for those of you who are involved in the capital cycle.  This is a major revision to what you learned in your Engineering Economics course, and may affect your planning cycles for the next 5 years at least.

  • 100% expensing of capital expenditures for equipment back to September 27 of last year.  Forget depreciation.
  • Equipment for capital expenditures used to be for NEW equipment only.  Now, used equipment (NEW to you) is treated the same way as new.  Full expense in year purchased
  • LIFO inventory method was not touched.  You can still use it
  • The article linked below also talks about the history and reason to reconsider the corporate structure of your firm.  If you are a small to medium size firm, this may affect you.
  • Also of interest are the changes and tax credits for family leave.


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