Manufacturing Sales Tax Exemption/Exclusion
The State of Louisiana and certain Parishes in Louisiana offer a Sales Tax Exemption/ Exclusion for manufacturing organizations.
The company must apply and be granted the sales tax exemption/exclusion to avoid sales tax.
The association must apply with the State of Louisiana and in each parish that business is originated. An exemption for one parish may not be acknowledged / accepted by another parish.
It is strongly suggested that the sales tax division in each pertinent Parish and the State of Louisiana be contacted individually to obtain the rules and regulations.
Dixie Mill must have a current copy of the State and Parish certificate to allow the avoidance of sales tax.
Depreciation Tax Savings
Many readers are aware that bonus depreciation rates are set to begin phasing down in 2023.
The first-year bonus depreciation deduction starting January 1, 2023 will be 80% of for property placed in service during 2023.
The Section 179 limit for 2023 is $ 1,080,000. This is the total amount of eligible equipment that can be deducted and the total equipment purchased by a business cannot exceed $2,700,000. Once the equipment purchased exceeds $ 2,700,000, the deduction is reduced on a dollar-for-dollar basis.
Using Section 179, Small and Mid-Sized businesses can write off the full purchase price of new qualifying equipment and lower their taxes. How much can you actually save in raw dollars? Use this free Section 179 calculator (bottom of article) to find out.