Does your business make a profit? Then Uncle Sam would like to buy you a Smart Valve! According to the latest tax code, the Smart Valve qualifies for full depreciation in the year of purchase (consult your tax advisor). How does this work? Updated Section 179 Tax Deductions for Businesses The Tax Cuts and Jobs Act of 2017increased the Section 179 benefit for businesses that buy assets and start using them. Effective January 1, 2018, businesses can immediately deduct up to $1 million for qualifying purchases of capital property, with a limit of $2.5 million. After 2018, the limits are indexed to inflation. Businesses can now also take this deduction for nonresidential real property (buildings), including: • roofs • fire, alarm and security systems, and • HVAC (heating, ventilation, and air conditioning) systems. What are Section 179 Deductions? Section 179 of the IRS Code was enacted to help small businesses by allowing them to take a depreciation deduction for certain assets (capital expenditures) in one year, rather than depreciating them over a longer period of time. Taking a deduction on an asset in its first year is called a “Section 179 deduction.” You can see that there is a benefit to taking the full deduction for the cost of the item immediately, rather than being required to spread out the deduction over the item’s useful life. For example, if you buy a computer or other office equipment for your office, under Section 179 you can deduct the full cost of that computer in one year. This also makes sense, because we all know that computers have a short lifetime or useful life. Now there is no excuse for not installing a Smart Valve!