Section 179 Tax Deduction

Don’t miss out: The ideal tax deduction for most contracting businesses Perhaps more than any other type of business, contractors depend on equipment to get work done. That’s why the type of deduction allowed through Section 179 of the U.S. tax code is perfect for them. Section 179 lets businesses deduct the cost of certain types of property from their income taxes as an expense for the year they’re placed into service instead of requiring the costs to be capitalized and depreciated over a long period of time. The benefit of taking advantage of Section 179 for you and your Read More »

Domestic Production Activities Deduction

Take advantage of a tax deduction for contractors who do work in the U.S.A. Could your contracting business qualify for a tax deduction designed to discourage companies from outsourcing work overseas? You bet it can! The Domestic Production Activities Deduction (often referred to as the Qualified Production Activities Deduction) provides tax incentives for small and large businesses to produce most of their goods or do the majority of their work in the United States rather than sending it overseas. Contractors and construction business owners aren’t aware of this tax deduction because it’s usually associated with oil-related businesses. In fact, Form Read More »

Section 179D

How to Be more competitive bidding for government work Did you know: If you’re a contractor involved in the construction of energy-efficient buildings for government agencies, you could qualify for a very significant tax break? This tax break could be leveraged to lower your bids for government work while driving more dollars to your firm’s bottom line. Here’s what you need to know. Section 179D To encourage the development or renovation of buildings that are energy efficient, Section 179D of the tax code provides a benefit for contractors (and others) that build or renovate green buildings. It’s a tax deduction Read More »

R&D Credit Opportunities

A major tax write-off most contractors don’t know about For a contractor, it may seem unlikely that something called the Research and Development Tax Credit would apply to your business. Here’s what you need to know. The credit and its benefits The Research and Experimentation Tax Credit (also known as the R&D credit) is available to companies that spend money on research and development in the United States. What most contractors don’t realize is that the IRS has a relatively broad definition of what research and development means. Many are surprised to learn that the definition includes design build construction. Read More »
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