As the year draws to a close, your business may be facing some strategic financial decisions.
Taking advantage of year-end financing to purchase a new Clean Energy waste oil heater now can be a strategic move. Not only do you get free shop heat from the used oil you already generate, you can also get tax deductions and favorable financing options that provide you with valuable financial incentives to purchase now.
The biggest of those incentives is the Section 179 deduction. This business equipment tax deduction lets you write off the full cost of qualifying equipment in the year it’s placed in service, even if you finance it. That deduction can make a real difference in what your waste oil heater actually costs you, and our Section 179 calculator below shows you how much.
Section 179 Deduction
Section 179 is a business equipment tax deduction that allows companies to deduct the full purchase price of qualifying equipment, including waste oil heaters, in the year it is placed in service. Instead of depreciating the cost over several years, you can write it all off at once. It’s designed with small and mid-sized businesses in mind, and both new and used equipment can qualify.
Here’s the part many business owners don’t realize: financed equipment qualifies for the full Section 179 deduction. You can deduct the full cost of your waste oil heater this year while paying for it over time, which means your tax savings can offset, or even exceed, your first year’s payments.
Even if you purchase your waste oil heater using end-of-year financing, you can take the full deduction to reduce your taxable income and effectively reduce the cost of your equipment purchase.
Section 179 Calculator
- Section 179 deduction—
Disclaimer
This calculator is a planning estimate only and is not tax, legal, or accounting advice. Results assume your equipment qualifies for Section 179, is bought outright or financed under an arrangement treated as a purchase, and is placed in service by December 31 of the current tax year. Your actual deduction may be limited by your taxable business income, annual Section 179 limits, and your state's tax rules. Please check with your tax professional before making a purchase decision.
Tax savings are realized when you file your tax return, not at the time of purchase.
Bonus Depreciation
In addition to the Section 179 deduction, bonus depreciation is another tax benefit to know about. It allows businesses to deduct up to 100% of the cost of qualifying new or used equipment in the year it is placed in service.
For most equipment purchases, Section 179 alone covers the full cost. Bonus depreciation mainly comes into play for larger purchases that exceed the annual Section 179 limit. Whether you buy outright or finance, equipment placed in service by December 31 can qualify.
Preserve Cash Flow
End-of-year financing enables your business to acquire the heating equipment it needs while preserving its cash flow for other expenses.
You can spread the cost of your waste oil heater over time, allowing you to maintain sufficient liquidity for day-to-day operations and unexpected expenses. In fact, many businesses use the money they save on heating bills to cover their payments. This is particularly beneficial for small and mid-sized businesses that need to manage their working capital carefully.
Limited-Time Financing Options
Year-end financing often includes special, limited-time financing deals that can lower your payments, reduce interest rates, and help you save on the purchase of your equipment.
In fact, generally starting in October of each year, Northstar offers special end-of-year financing promotions that could include deals such as 0% financing when you purchase a new Clean Energy waste oil heater.
If you happen to miss these financing specials, Northstar offers several other customizable financing options throughout the year that can be tailored to fit the unique budget and needs of your business.
Don't Miss The Section 179 Deadline
To count for the current tax year, equipment must be purchased and placed in service by December 31. For a waste oil heater, that means installed and in use, so be sure to leave time for installation. If you’re weighing a purchase, this is one of the strongest reasons to move now instead of waiting until next year.
The good news is there’s still time. Our credit application can be completed in three simple steps, and our approval process is faster than a traditional bank loan, so you can get your waste oil heater installed before the deadline, and before the cold hits.
Free Heat & Lower Operating Costs
A waste oil heater turns the used oil your shop already generates into free heat, lowering, if not eliminating, your heating costs while cutting what you pay to have that oil hauled away.
Financing a new Clean Energy waste oil heater means you can start heating your shop for free without paying the full cost up front. And with Clean Energy heaters regularly lasting more than 20 years, you’ll be investing in equipment that keeps paying you back for years to come.
Make A Strategic Financial Decision
To maximize tax benefits such as the Section 179 deduction and bonus depreciation, consider consulting with a financial advisor or tax professional who can guide you through the intricacies of tax laws in your area and help design a financing plan that aligns with your business objectives.
By leveraging these tax advantages and our end-of-the-year financing options, you won’t just turn your used oil into free shop heat, you’ll turn up the savings on your finances as well.