Throughout “Investment Week” we are seeking to highlight the impact of these provisions on manufacturers large and small. Today, we want to highlight the ripple-effect that enhanced Section 179 has in the larger economy. This provision is helpful for manufacturers that are investing and for the manufacturers of capital equipment.
A good example of this synergy is Green River Cabins, LLC a manufacturer of RV Park Models and Modular Cabins, in Campobello, South Carolina. According to Company President, Dean Garritson, “as a small manufacturer, enhanced Section 179 has significant impact on our decision to upgrade or add equipment. Additionally, because the RV Park Models are personal property, when used in a business, these purchases are often eligible for Section 179.”
In fact, about 15 percent of Green River Cabins’ park model sales are sold to businesses that rent these units for nightly and weekly getaways. Over the years business owners tend to add units each year and enhanced Section 179 is critical to their decision to buy the units. So this provision is not only beneficial to Green River Cabins and helps grow their own business and sales and their whole supply chain but it is also beneficial to the business that is purchasing the cabins and their employees and supply chains as well.
According to Dean, “in short, our business uses section 179 to reduce the cost of capital equipment and to sell our product. We are one of many manufacturers that sell capital equipment and the positive impact of section 179 to our cash flow and sales helps to offset the increasing cost of government regulation.”
This is just one example of the ripple-effect that can be expanded with the permanent extension of enhanced Section 179 expensing. Manufacturers large and small call on the Congress to take action and renew and extend these provisions.