Metal buildings are popular for business and industrial structures because they are affordable and strong, and building erection is quick.
But there are ways owners can possibly save even more money on them. Here’s an overview of the alternative financing and tax incentives for your metal building and explain how you can save money through tax breaks.
Metal Building Financing Options
Alternative financing options can be more flexible and might cost less than regular loans.
- Short-Term Loans: Ideal for smaller projects, short-term loans offer quick access to capital with faster repayment terms.
- Equipment Leasing: This option allows you to “rent-to-own” your metal building, spreading the cost over a set period. Leasing can offer tax benefits and free up working capital for other business needs.
- SBA Loans: The Small Business Administration (SBA) provides different kinds of loans that help pay for projects. These loans usually have low interest rates, and you can take more time to repay them. This makes them a good option for big projects.
- Construction Financing: Partnering with a contractor like DD Construction may offer access to construction financing solutions. This can streamline the financing process and ensure a smooth project flow.
When exploring financing options, compare interest rates, fees, and repayment terms to find the solution that best suits your project budget and business goals.
Tax Incentives
Metal building construction can qualify for various tax benefits, significantly reducing your project’s overall cost.
- Section 179 Deduction: Talking to a tax advisor can help determine the tax breaks you might get for your project. This way, you can save as much money on taxes as possible. This tax code allows you to deduct the entire cost of a qualified project (up to a certain limit) in the year it is placed in service. This can provide substantial upfront tax savings.
- Bonus Depreciation: This provision allows for accelerated depreciation of a portion of the cost of a new metal building, lowering your taxable income.
- Energy-Efficient Building Rebates: Many places give money back or tax breaks for constructing energy-saving structures. Metal buildings can also be made to save energy so that they can get these special deals.
- PACE: PACE, which stands for Property Assessed Clean Energy, lets you pay for energy-efficient upgrades over time through your property taxes. This means you can spread out the cost and potentially keep your payments low enough that your energy savings could cover them. Plus, the interest on your loan might be tax deductible, giving you even more savings. With PACE, you can invest in upgrades like insulation, HVAC systems, and even solar panels, all while saving money on your energy bills. You can check online to see if your area offers a PACE program.
The Economic Benefits
Metal buildings offer inherent economic advantages beyond financing options and tax breaks.
- Time: Metal buildings are pre-engineered and manufactured off-site, leading to faster construction times and lower labor costs than traditional construction methods.
- Cost Savings: These structures require less maintenance than other materials, saving you money on repairs and replacements over the long term.
- Depreciation Credits: The IRS allows for depreciation deductions on your construction cost over its useful life, reducing your taxable income.
Metal buildings are a smart and cost-effective choice because they’re strong, dependable for decades, and can even help you save money through special financing deals and tax breaks. Also, as a builder for Butler Manufacturing™, we have access to an extensive steel building system catalog to create anything you can imagine.
DD Construction knows all about metal buildings and can help you from start to finish, ensuring you get the best deals. Contact us now to talk about your project and find out how you can spend less!
