Imagine if you could revolutionize your manufacturing operations, drastically improve productivity and simultaneously receive substantial tax savings – all within this year. Sounds too good to be true? Think again. Right now, the IRS is practically handing out a significant tax break tailored specifically for manufacturers ready to invest in game-changing technology. If you've ever felt held back by outdated systems, frustrated by hidden costs, or wished for clearer insights into your production line, it's time to embrace an ERP solution and watch your business transform while immediately slashing your tax bill. Curious how? Keep reading to discover how the IRS Section 179 Tax Deduction can make your manufacturing dreams a profitable reality this year.
What is Section 179?
Simply put, it’s a powerful tax incentive designed specifically for U.S. manufacturers to invest in business-critical technology like ERP systems. Section 179 offers significant financial relief for manufacturers by providing a tax incentive to deduct the full cost of ERP software and new equipment from a company’s gross.
To qualify for the Section 179 deduction, ERP software must be on premise and used for managed services only. It must also be used for at least 50% of the business, purchased or financed through qualifying methods and have a lifespan that exceeds one year. Implement ERP strategically with timely documentation and leverage Section 179 deductions by expensing hardware purchases immediately to quickly reduce tax liabilities. There are maximum deduction and total purchase limits that change every year. For 2025, the max deduction limit is $1,250,000, and the max total purchase limit is $3,130,000.
Why You Need ERP Now
- Immediately cut your tax bill. Deduct the entire ERP purchase cost this tax year – not spread out, but right now.
- Grow your sales by scheduling jobs efficiently and accurately, knowing your job status in real time, ensuring employees know what to work on next and managing quality.
- Move parts through your shop faster by knowing your true capacity with real-time data tracking, quickly identifying and resolving production bottlenecks and avoiding stock-outs with automatic purchasing.
- Maximize profits. Know which jobs make or lose money by viewing all sales order data from one screen, delivering orders on time every time and tracking production and labor cost data with remarkable accuracy.
Don't let another year slip by with inefficient systems and higher taxes. Make the move to ERP today, capture your Section 179 deduction and aggressively position your manufacturing operation for explosive growth and immediate financial savings. Schedule an ERP demo today.