Section 179 Tax Deduction/Bonus Depreciation

Thinking of purchasing a new cnc router in 2011, and still on the fence because of the uncertain economy? Some great news is the current dual benefit of the Section 179 deduction/100% bonus depreciation which helps make 2011 the ideal year to purchase your new cnc router!

These newest changes are as follows:

• The Section 179 Deduction limit has been increased to $500,000. The total amount of equipment that can be purchased increased to $2 million. This includes most new and used capital equipment, and also includes software.

• The “Bonus Depreciation” has been increased to 100% on qualified assets. However, this can be taken on new equipment only.

2011 is the Year to Do It!

Due to the extension of Section 179 under the 'HIRE Act of 2010' - the enhanced limits under the 'Jobs Act of 2010' - and the recently enacted 100% Bonus Depreciation under the 'Tax Relief Act of 2010':

You can basically write-off 100% of all the equipment and software your business needs to buy or finance this year!

Depreciation Bonus At A Glance:   

• 2011 Deduction Limit - $500,000 (up from $250k previously). Good on new and used equipment, including new software.

• 2011 Limit on equipment purchases - $2 Million Dollars (up from $800k previously).

• “Bonus” Depreciation - 100% (taken after the $500k deduction limit is reached). Note, bonus depreciation is only for new equipment. This can also be taken by businesses that exceed $2 million in capital equipment purchases.
  
  The above is an overall, “simplified” view of the Section 179 Deduction for 2011. For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, please visit section179.org
  
  An example of Section 179 at work:

For more detailed information: please click here.

Calculate your potential savings: please click here

Please use the following links to view our line of 3 axis and 5 axis Thermwood CNC Routers. 

Visit Why Purchase a Thermwood? to see why our machines are the most reliable, technically advanced and safest choice for over 40 years.

We've created a couple of videos demonstrating the superior performance of the CabinetShop 43 in a variety of applications.  The first is the Carving of an inset carving, and the second is Cabinet Cutting.

About the CabinetShop 43:  The CabinetShop 43 offers premium performance not normally seen at this price point. For example, it has positioning speeds to 3,180 inches per minute and programmed cutting speeds to 2,250 Inches per minute. The actual speed at which you can cut is determined more by tooling and material than by the machine, but its speed is indicative of the overall solid CNC performance of the CabinetShop 43.

We are pleased to introduce a revolutionary new CNC Router System, called the CabinetShop 43, for nested based applications. This new high performance CNC router is built in the US, at Thermwood's Southern Indiana factory and utilizes a whole new, highly efficient manufacturing approach which results in a superior structure coupled with enhanced use of materials, all at a dramatically lower price.

The new machine features a 61 by 121 inch fixed table, a 10 HP HSD spindle and an eleven position automatic tool changer. It offers high acceleration, high performance motions in both positioning and cutting. This new system includes quality features seldom, if ever, found at this price point including full stress relieved weldments, high-end Siemens drives throughout, THK rails and three-dimensional volumetric position compensation.

The system also includes Thermwood's QCore SuperControl which sharply distinguishes it from every other machine in this class offering features such as:

"QuickCut" is the fastest, simplest, easiest way to make cabinets and closets ever. Just select and resize a cabinet from the library and cut it, all right at the machine control.

"Job Level Interface" means you communicate with every major cabinet design software package using a single job file instead of dozens or hundreds of individual programs. Nesting and program development happen automatically at the machine; an approach that offers dramatically simpler operation and higher productivity.

The QCore SuperControl also executes standard G-Code programs developed elsewhere.

The QCore SuperControl also has an impressive list of operating features all with one purpose, make the machine as foolproof as possible to reduce errors, minimizing the time you fiddle with the machine. It runs more with less effort.

- Automatic Tool Management helps you manage tooling and tracks tool life

- Maintenance Tracking tracks machine use and guides you through routine maintenance

- Graphic Error Reporting shows you exactly where a problem is and suggests solutions

- Complete User Manual in the control

- Dynamic CAD drawings of the entire machine on the control screen

- Maintenance Videos on the control guide you through mechanical adjustments

- Virtual Service provides direct link from the control to Thermwood service

Never before has this level of technical sophistication, quality and performance been available at this price. The CabinetShop 43 is ushering in a new era of productivity, ease of use and profit for custom cabinet operations.

We are pleased to announce the upcoming arrival of our latest machine, the CabinetShop 43! This low-cost, high-performance 5×10 table CNC Router is perfect for making nested based cabinets, closets, furniture and upholstered frames.

Look for more information about the CabinetShop 43 coming in the next few weeks.

Until then - if you would like to know more, please contact us for the inside scoop.

Recently we asked ourselves a simple question - Why should someone purchase a Thermwood CNC Router over any of the other options on the market?  To us, this seemed like a no-brainer.  Of course they should purchase one of our machines, because they are superior to all the others, right?  Well, we think so, but that answer to such a simple question doesn't really explain anything about our advantages or help a potential customer understand the entire support system and huge range of unique tools and time-saving capabilities built into our control and machine.  We just take these powerful advantages for granted, and assume everyone knows about them....but how can they if we don't let them know?

Our next task was to come up with a concise listing of these features/advantages that could be easily understood without needing to go into complex detail just to explain everything to someone.  That proved to be easier said than done.  We stood back and started listing everything we have that gives our machines, control system, training and service and support programs a huge advantage over anything offered by our competition - it was a very long list! 

We spent the better part of a week refining this list into three main points (each also being broken down into further information).  The concise reasons we came up with are that someone should purchase a Thermwood CNC Router because we offer Better Machines with More Features and Better Support.  Anyone can say this, right?  But we can also prove it with facts.  To do this, we created a new area on our site that goes into further detail on this subject.  It breaks all of these areas down and explains everything in further detail. 

This exercise was a positive experience for us in helping to focus our message into a simple statement that includes everything a Thermwood customer receives as part of their machine purchase.  without sounding too "sales-like":

The bottom line is that Thermwood systems install fast, start up quick, are easier to use and maintain, produce more and last longer. 

We expect to officially release the extensive eCabinet Systems online training program by mid-May and are continuously adding sections up to that point.

A one year subscription to the eCabinet Systems Online Training program costs $950, and includes a hard copy of the 700 page Nearly Complete Guide to eCabinet Systems. After the first year, the training subscription can be extended for $350 per year.

About the Course:

We currently have 20 hours of tutorials available with the program, and more is being added everyday. The training course covers all subjects taught in Thermwood's week long eCabinet Systems Training Program without the travel and lodging costs.

This is an extensive, detailed course that will guide you through every function and capability of this extraordinary software. It is presented in clear, easy to understand language that will unleash the incredible power of eCabinet Systems.

To view more information or purchase the eCabinet Systems Online Training - Please Click Here

I am the founder and CEO of Thermwood. If you check our web site you will find a new area where we offer a comparison chart of the nested based systems available today and some "straight talk" about the systems and industry.

I'm the one that put this together because of several things that have been happening and I thought I might use our new blog area to tell you about it.

We are trying to sell nested based systems to cabinet shops and in today's world, these sales are really important. In analyzing what's going on, two things stood out. First, customers that bought our product continually tell us they are pleasantly surprised at all the things it does for them. This is good because happy customers are always good. It's bad however, because the fact that they were surprised means we did a lousy job of telling them the advantages of our offering or what they should expect before they bought.

The second thing had to do with our Model 41 and Model 67 machines. In the wood industry our dealers have been telling us we needed a lower cost machine so we developed the Model 41. In order to build a machine at a lower cost you have to take something away so we used a single side drive for the gantry and purchased, rather than built, the Z axis assembly. This meant two things as far as the customer is concerned.

First, table size was restricted to 4'x8'. This meant that when combined with our three-dimensional compensation we could get good performance and good accuracy which is difficult to do with a single gantry drive. A larger table with this arrangement wouldn't work very well. Also, the shorter stroke of the purchased Z axis meant that the rotary playback for making carved posts and legs couldn't be used with this machine. We didn't consider this a major drawback since not too many shops ordered the optional playback system anyway.

The Model 90 was a little different. We had a solid and good selling product in our five axis Model 67. It did a great job in trimming and model and mold making and was probably the market leader in those applications. Our engineers designed up a higher performance version of the Model 67 and we called it the Model 90. It was quite a bit more expensive but the extra money made it perform substantially faster and better. Our sales folks told us they didn't think it would sell because you could do the same jobs with the lower cost Model 67.

In actuality however, the Model 41 attracted a lot of customers but virtually all of them moved up to the Model 45 because of better performance and more capability. The same thing happened to the Model 90. Over half of the customers switched to the higher cost-higher performance Model 90.

These things were bothering me because of a lot of talk in the forums and blogs about the price of nested based systems. The talk and blogs and forums all acted like all these systems are the same. Just like our customers didn't know what we were offering, the industry doesn't seem to know or appreciate the difference between low cost systems and higher cost systems, both ours and some of our competitors. They don't seem to have a clue about what you get for what you pay.

This caused me to try to lay out the whole thing in a clear, accurate and honest way. Based on the two observations, perhaps if potential customers really understand everything our systems offer, they would be willing to step up to the higher price just like they did with the Model 41 and Model 90. If not, at least they would both understand and accept what they are buying for what they are spending.

I tried to be as accurate as possible with this comparison. If you find any area where the comparison is wrong, please let me know and I will change it. Also, if there is an area where you think we should add additional items for comparison also let me know. My email is ken.susnjara@thermwood.com

For comparison purposes, I do not want to include items open for interpretation. For example, I believe our service is second to none, but the quality of service is value judgment rather than a provable fact so I have left those things out. You should check out service pretty carefully before buying, however. It is very important.