New Tax Law Allows Buyers to Save on Forklift Battery Handling Equipment in 2016

    ST. LOUIS, MO, August 19, 2016 /24-7PressRelease/ -- For the rest of 2016, owners of electric forklift fleets can realize significant savings on the cost of a Battery Extractor System from Battery Handling Systems, Inc., a leading manufacturer of material handling and battery changing equipment.

These savings come courtesy of the recently-passed Protecting Americans from Tax Hikes Act (PATH Act). This law includes several tax breaks, including permanently extending Section 179 expensing and extending bonus depreciation.

Section 179 allows a taxpayer to expense the cost of qualified new equipment purchased for use in an active business. The maximum deduction for property placed in service is $500,000, reduced on a dollar-for-dollar basis for the amount exceeding $2 million. The Section 179 expensing limits have been permanently extended.

Bonus depreciation allows businesses to deduct 50 percent of the cost of new equipment purchased and installed in 2016. What does this mean for operations that invest in a Battery Extractor System this year?

If a company's total annual spend on new equipment and other capitalized assets is less than $2 million, the purchase of a Battery Extractor System with a total cost of $500,000 or less may be fully expensed for tax purposes in 2016.

If the total spend on capitalized assets is more than $2 million, businesses can take advantage of bonus depreciation to expense half of the equipment purchase, plus standard depreciation on the other half.

Here's what these tax breaks would look like for two hypothetical businesses making a $500,000 investment in a Battery Extractor System on or before Dec. 31, 2016:

1. Total annual spend on equipment is less than $2 million.
Section 179 allows a full deduction of $500,000 of a Battery Extractor System.
In this scenario, that's 100 percent of the total cost.

2. Total annual spend on equipment is greater than $2 million.
Bonus depreciation: $250,000
Standard depreciation: $35,714
Total depreciation expense: $285,714
Here, the company could save nearly 60 percent of the cost of a complete battery handling solution.

Battery Extractor Systems from BHS improve safety and efficiency during battery changes, reducing change-out times to just minutes. Companies must have their total battery solutions purchased and installed by the end of the year to take advantage of the PATH Act's monumental tax breaks.

BHS reminds the public that this information and examples are for illustration purposes only and recommends consultation with a tax advisor for advice on specific situations.

About Battery Handling Systems, Inc.

Battery Handling Systems, Inc. is a manufacturer of battery changing and material handling equipment based in St. Louis, MO, USA. The company leads the battery handling industry with the most comprehensive line of products and provides total solutions for the battery room, including custom engineered systems. Please visit http://bhs1.com for more information.

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