Section 179 is a tax benefit brought through by the federal government which enables you to accelerate the depreciation on equipment purchases. What that means is you can take the entire depreciable life of that equipment and push it all in to that first year, resulting in a very significant tax savings. When the government comes forward with tax incentives like Section 179, it's really a great opportunity for small business owners to acquire their equipment. The government wants to spur on the economy and spur on job growth. One of the very best ways to do that is to encourage capital equipment purchases because that encourages manufacturing, which is one of the biggest drivers in our economy.

1. Enabling America’s Entrepreneurs To Succeed

2. Enabling America’s Entrepreneurs To SucceedEnabling America’s Entrepreneurs To Succeed
Available Tax Incentives
• Section 179
• For capital spending of up to $500,000 on new or used equipment, 100% of the
investment may be deducted in the current year.
• Bonus Depreciation
• For capital spending on new equipment between $500,000 and $2 million, 50% of the
capital spend can be deducted in the current year.
• Deduction is being phased out:
• 50% in 2017
• 40% in 2018
• 30% in 2019
• 0 after 2020 and beyond
Information current when published. Please contact your tax advisor for
current information. Patriot Capital does not provide tax guidance.

3. Enabling America’s Entrepreneurs To SucceedEnabling America’s Entrepreneurs To Succeed
Available Tax Incentives
Cost of Equipment $600,000
1st Year Tax Deductions Traditional
- 100% of first $500K $500,000
- Bonus Depreciation - 50% to $2M $50,000
- Normal 1st
Yr Depreciation** $85,714 $7,145
TOTAL Year 1 Deductions $85,714 $557,145
Marginal Tax Rate of 35% (Assumed) $30,000 $195,000
NET FIRST YEAR COST AFTER TAX: $570,000 $404,999
Section 179
$600,000
Information current when published. Please contact your tax advisor for
current information. Patriot Capital does not provide tax guidance.

4. Enabling America’s Entrepreneurs To SucceedEnabling America’s Entrepreneurs To Succeed
Capital Investment Alternatives
• Cash
• Line of Credit
• Equipment Financing
• Operating Leases

5. Enabling America’s Entrepreneurs To SucceedEnabling America’s Entrepreneurs To Succeed
The Tradeoff’s of Capital Investment
Collateral
Requirements
Control
Covenants
Cost

6. Enabling America’s Entrepreneurs To SucceedEnabling America’s Entrepreneurs To Succeed
Financing Benefits For Retailers
• Leaves cash and senior lines available for strategic
investments
• Faster and easier than traditional financing
• One page application
• Rapid approval
• Fixed interest rate for full term
• No risk in rising rate environment
• Positive cash flow impact vs. paying cash

7. Enabling America’s Entrepreneurs To SucceedEnabling America’s Entrepreneurs To Succeed
ROCE – Where Do You Get The Best Return?
NACS AVERAGE ROCE Q1-Q3 2015 = 15.2%
Source: NACS SOI – CSX LLC
0
5
10
15
20
25
Top Quartile 2nd Quartile 3rd Quartile 4th Quartile
ROCE%

8. Enabling America’s Entrepreneurs To Succeed
Enabling America’s Entrepreneurs To Succeed