Are you looking for some leniency from Uncle Sam this tax season? Investing in federally compliant chemical storage could lead to sizeable tax deductions. With inflation slowly teetering to pre-pandemic levels, industries are looking to offset exorbitant business expenses with creativity. While tightening the company’s purse strings is always met with audible groans from a tiring workforce making do with the tools of the trade at their disposal, investing in compliant chemical storage is a necessity that should never be categorized as frivolous. OSHA says no more than 25 gallons of flammable or combustible liquids may be stored in a room outside of an approved storage cabinet. Companies opting against federally required chemical storage cabinets run the risk of increasing health hazards and sizeable civil penalties. Fortunately, understanding the IRS’s fine print could provide some loopholes, such as counting this necessary equipment as a tax deduction.
Depreciation Deductions
Equipment and materials are two of the most common eligible tax deductions. Heavy machinery, office equipment, and furniture meet Section 179 tax deduction status requirements. The IRS allows companies to deduct a large portion of the purchase cost if made within the same fiscal year. While this lesser-known deduction is commonly spread out over several years, Section 179 helps businesses consolidate losses by conducting 100 percent of the cost of tangible assets, which are items you can physically touch or move. Our chemical storage lockers will protect and safely store large volumes of flammable materials for decades. Federally compliant storage is a requirement – there’s no getting around it. Why not take advantage of stringent bureaucracy by offsetting multiple tax season expenditures?
Chemical Storage Rental Write-offs
Not every chemical storage dilemma requires a permanent solution. Transient industries, such as construction and oil refineries, only necessitate chemical storage for a few months. Chemical storage rentals cost a fraction of the purchase price without sacrificing reliable protection. The IRS currently allows businesses to deduct equipment rental payments as a business expense. While U.S. Hazmat Storage specializes in chemical safety cabinet sales, we also offer rental solutions for short-term projects. We can quickly deliver Conex-style chemical warehouses to your job site before shipping it back to us.
Education Deductions
Worker education and training stimulate the economy by reducing sector turnover while allowing companies to build capital that can be invested in other diverse markets. Therefore, the IRS rewards and incentivizes employee education and training with deductions. Skill improvement classes, seminars, workshops, and trade journals qualify as deductible items. Understanding chemical volatility and classifications fall under the purview of additional employee training and oversight. Our knowledgeable building advisors can provide free consultations and brief training exercises for clients and employees unfamiliar with chemical storage. Lumping employee training into the chemical storage rental fees and purchase costs could lead to clever deductions when complemented with other write-offs.
The Bottom Line
While none of these suggested deductions will guarantee leniency during tax season, the IRS could see proposed deductions for federally required equipment as a commensurate business expense worthy of consideration. You should always consult a certified public accountant to determine write-off eligibility. Our chemical storage lockers are like any other heavy equipment commonly courted as eligible deductions. Moreover, reliable hazmat lockers can prevent civil penalties and reduce overhead expenses by extending the shelf life for perishable and temperature-sensitive chemicals. Contact U.S Hazmat Storage today for a free quote and consultation!