Modular Indoor Grow Equipment Tax Advantage

A TAX ADVANTAGE
& FASTER ROI*

InPlant’s indoor Modular Cleanroom Systems or your “Prefab Agricultural Buildings” may offer significant tax advantages compared to fixed construction. Most small businesses can write off the entire cost of your Modular Offices, Equipment Enclosures and Portable Security Shelters or Gate Booths on your 2024 tax return (up to $1,220,000).

For full details, visit section179.org.

2024 Section 179 Tax Deduction* Limit is $1,220,000 on Modular Cleanroom Systems & Office Wall Partitions

Modular Grow Solutions May Qualify as Grow “Equipment”

InPlant’s Office Wall Partitions, prefab Grow Rooms, and Equipment Enclosures are an economical choice over the standard construction of real estate because they are classified as “equipment”. Tax laws label Modular Buildings as equipment that demount and move. This Classification allows for accelerated depreciation, a tax benefit that allows you to deduct a larger portion of the asset’s cost in the early years, saving you capital (refer to IRS §179).

Standard vs. Modular Construction

Standard construction is permanent fixed real estate. It’s considered conventional construction and classified as “real property” with a 39-year depreciation.

InPlant Modular Cleanroom Systems—Enclosures and Partitions, in contrast, are not permanently installed. They are portable and flexible for expansion or reconfiguration. As a result, your InPlant Building System is classified as “tangible property” with a depreciation period of just one year.*

How You Could Save

For example, assume you buy a new Office for $40,000 and install it before December 31, 2024. At the end of one year, your InPlant Modular Building System is fully depreciated, reducing your taxable income by the original cost of $40,000. If you chose conventional construction, the cost will be depreciated by 2.5% in 2024, reducing your taxable income by only $1,025. Therefore, by selecting the In-Plant Modular Building System, you gain an additional $38,975 tax deduction in the first year.

Assuming a 35% tax rate, the difference in your tax savings invested — $14,000 one deposit or $359 yearly contribution — at 5% for the remaining 38 years would return approximately $86,396 versus only $42,893.

Consider the savings by going Modular with all of your growing environments. When you factor in the tax savings and the lower initial cost, modular construction can significantly reduce your total cost of ownership over the life of the asset. Know that your indoor Grow Equipment designs may be tax saving — a cost-effective grow room compared to real estate investment.

*This information should be discussed with a tax professional. It’s important to remember that you must have a profit to use the depreciation deduction noted in Section 179 of the tax code. You can estimate your rates at section179.org/section-179-calculator.php, but for the best advice, consult a tax professional.