There are several ways to finance your project and there are advantages in doing so. Purchase at today’s equipment and labor rates, reduce liability exposure, improve cash flow, or reduce current operating expenses.
Fire Department and First Aid Squads
Fire Department and First Aid Squads have a couple of options. The best option is The Assistance to Firefighters Grant program run by FEMA, which funds the purchase of exhaust systems for both fire and EMS services. This has been an annual program since 2001 and has put billions of dollars into the emergency services to fund projects and equipment. Not all fire and ems organizations qualify for the grant program, therefore, municipal lease financing is a great alternative.
When looking back on publicly funded projects we can see the cost of labor, metal, and raw materials increasing over the last 5 years. We compared purchases made in 2015 and added the cost of 5-year municipal lease payment for fire departments that qualify for municipal lease rates. Our studies show that cost of ownership was lesser in 2015 than if you were to purchase in 2020.
Municipal lease financing continues to prove a beneficial option as COVID-19 has decimated state and municipal budgets. We can guide you through this process.
Industries purchasing a dust collection system or industrial ventilation equipment categorize the expenditure as a capital expenditure. They qualify as 100% tax-deductible in the year of purchase under section 179 of the tax code. This can be advantageous rather than depreciate the equipment over a longer period of time. The maximum you can deduct in 2020 is $1,040,000 according to the IRS.
There are also bank lines of credit as well as equipment financing companies with affordable rates for business.