Why You Should Invest in a New Dust Collection System Before the End of the Year

If a new dust collector is needed at your plant or facility, then one of the best times to invest in a new dust collection system is before December 31st. A new dust collector is not only an invaluable long-term asset for companies, but such a capital equipment acquisition before year’s end is an excellent business investment to expense. By leveraging a capital equipment investment before the end of the year, companies can reap tax benefits now and for years to come. 

Cost Comparison

Surely, the costs of maintaining an aging dust collection system versus investing in a new dust collector should be weighed. One reason to purchase is that getting by with legacy equipment installed 15 or 20 years ago is no longer safe, cost-effective, or compliant. Another reason is that your system may be affected by performance issues, which are increasingly common in older dust collectors due to general wear and tear after years of service. If the dust collection system struggles to continually filter and clean the air of potentially dangerous particles, then it is time for a replacement. 

Expected Service Life

If you are wondering how long your current system will last, keep in mind that the expected service life of a dust collection system is, in large part, directly related to the type of particulate matter being removed from the work environment. Well-maintained dust collection systems filtering non-abrasive dry, dust particles will last approximately 20 years. On the other hand, if a system has been designed to remove heavy or abrasive dust with sticky or hygroscopic properties, the expected service life of the system is typically 5 to 10 years.

Practicality of Investment

Then, there may be practical reasons to acquire a new dust collector. Product enhancements, expansion, and new technologies at your facility may warrant either replacing or adding a new dust collector. In cold-weather climates up north or climate-controlled environments in the south, installing a new dust collector with a return air system can help maintain a comfortable indoor temperature in facilities. Not only does it provide a safe and clean working environment for employees, but a new dust collector is an economical way to improve air quality and save energy costs.

Section 179 Tax Incentives

That said, practicality or necessity aside, if your company is in the market for a new dust collector, the acquisition of one before the end of the year will provide an opportunity to realize substantial tax benefits under Section 179 of the IRS tax code. Section 179 of the tax code has changed in recent years allowing companies to take advantage of tax savings. Though this government incentive has existed for many years, in 2018, Section 179 tax advantages expanded and increased, setting a higher limit of $1,160,000 and a bonus depreciation of 80%. 

Section 179 allows companies to take an immediate expense deduction for purchases related to depreciable assets like equipment. This deduction allows the full amount of the purchase price to be eligible for the deduction, rather than capitalizing and depreciating the asset over time. Companies can lower their current-year tax liability instead of spreading the deduction over future tax years. Also, by taking advantage of this deduction, businesses can save on their taxes in the current year, with a 20% advantage over the following year. 

Companies looking to expand or upgrade their facilities with new equipment can benefit greatly from Section 179 of the tax code. The section incentivizes companies to invest in themselves through purchases of new equipment or technology. Your company can deduct the full purchase price of the qualifying equipment as long as it has been purchased or financed during the tax year. 

Contact the Dust Collection Experts at CPE Filters

If your company is planning on acquiring a new dust collector, consider taking advantage of the available tax benefits and leverage a capital equipment investment before the end of the year. To be sure, consult with your company’s tax professional for the full details of how your company can benefit from Section 179. To discuss your company’s dust collection requirements anytime, contact the experts at CPE Filters, Inc. We offer a wide range of dust collection equipment and services to meet your every need.