This event was targeted at companies interested in building their network and will specifically target the government contracting market. Attendees learned about the importance of building that network and be given an opportunity to introduce their business and experience in the government market and share best practices. Hosted by CIRAS to provide manufacturers an opportunity to gather and network while learning about tools in their community they can use to grow.
Kevin Santry, of Santry360 shared with attendees an outline of changes made by the passing of the 2017 tax bill and offered an analysis of how these changes will impact small businesses. The discussion focused on changes in business deductions and how to financially plan for the year with these changes in mind.
Important Information to know moving forward through 2018.
HOW TAX REFORM WILL IMPACT MANUFACTURING:
With most of the provisions set to go into effect in 2018, it is important that the manufacturing industry review the changes that occurred with the tax reform to understand the impact to their companies. Below are a few summarized top considerations and implications:
Reductions of the Corporate Tax Rate
Reduces the top corporate tax rate from 35% to a flat 21% This is a huge win for manufacturers. The effective actual tax rate for manufacturers has historically averaged 22%
Immediate Expensing of Certain Capital Expenditures
Companies will be able o fully expense capital expenditures, including acquisitions of used property, in 2018.
This is to encourage more capital spending, potentially driving up sales for hardware manufactures of products eligible for expensing. Applies until 2022 for purchases made after Sep 28 2017. The percentage of allowable expensing will be phased out at a rate of 20% per year:
- From 2023 (80%) to 2026 (20%)
Pass-Through Tax Treatment / Section 199A
Pass-through entities may qualify for a 20% deduction on qualified business income under the new tax bill. This deduction is subject to certain W-2 wage limitations. Qualified business income is basically all domestic business income other than investment income, investment interest income, short term capital gains, long term capital gains, etc…