New Tax Code Encourages Robot Installations

New Tax Code Encourages Robot Installations

Subsidies have been introduced that would allow companies to take immediate expensing of high-cost assets, such as robots, instead of depreciating them over time. This plan works to the advantage of companies struggling to either find or keep their workforce which is currently needed to perform jobs that could be automated. Rather than expensing wages as they are paid over time, companies could purchase robots and take the deduction right away. This makes an investment in automation a much more attractive option financially. According to the Tax Policy Center, corporations could gain upwards of $2 trillion because of this tax reform in the next 10 years.

While some automation installments may affect jobs such as crop picking, the impact on productivity will be immense. The lower production costs will allow for more innovation and create jobs for more skilled workers in the areas of sales, marketing, equipment training and maintenance and R & D. Overall, it is expected that an increase in automation and robotics will ultimately contribute to a better quality of life, as has historically been the case.

Learn more about collaborative robots that qualify for the tax incentive here.

Jan 30th 2018 Angela Caruso

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