A TAX ADVANTAGE
& FASTER ROI*
Modular buildings or “grow equipment” 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 In-Plant Modular Offices, Buildings & Enclosures
InPlant Modular Products Qualify as Grow Equipment
InPlant’s Modular Building products are an economical choice over the construction of real estate because they are classified as grow equipment. This is because tax laws label Modular Buildings that demount and move as “equipment.” This allows accelerated depreciation, saving you capital (refer to IRS §179).
Standard vs. Modular Construction
Standard construction is fixed and permanent real estate. It’s considered conventional construction and it’s classified as “real property” with a 39-year depreciation.
InPlant Modular Building Systems, in contrast, are not permanently installed. They are portable with the flexibility 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 will be 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.
| Construction Method | Investment Depreciation | First Year Deduction Amount | Estimated Tax Rate | 2018 Tax Savings |
|---|---|---|---|---|
| InPlant Office Modular Product | $40,000 | $40,000 | 35% | $14,000 |
| Conventional Construction | $40,000 | $1,025 | 35% | $358.97 |
Assuming a 35% tax rate, the difference of 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. Know that your indoor Grow Room designs are tax saving — a cost-effective grow room compared to real estate investment.
*This information should be discussed with a tax professional. You must have a profit to use the depreciation deduction noted in Section 179 of the tax code. Estimate your rates at section179.org/section-179-calculator.php