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Pharmacies Can Save Thousands in “Fiscal Cliff” Fix

Tax benefits for capital equipment lease or purchase

If you want to see your pharmacy’s quiet accountant get talking, just ask her about Section 179. Recent changes to the federal tax incentive mean that capital equipment purchases you made in 2012 — or investments you plan to make in 2013 — may have a bigger impact on your bottom line than you expected. Your savings may be in the thousands. Now that’s something to talk about.

Under House Resolution 8: American Taxpayer Relief Act of 2012 (better known as the “Fiscal Crisis Bill”), Congress more than doubled the 2012 deduction for financed or leased equipment that was placed into service by year-end. Even better, the enhanced deduction is available through 2013.

And the change couldn’t have come at a better time. With pharmacies focused on growth as a strategy to manage increasing volume, lower profit margins and consolidation, automation is an excellent way to decrease cost per prescription and enable higher-value services, such as long-term care and medication therapy management.

Here’s a quick look at how the legislation changed the incentive.

Section 179 Federal Tax Incentive 2012
Deduction $139K $500K $25K $500K
Bonus depreciation 50% 50% 0% 50%
Limit on overall spend $560K $2 million $200K $2 million

*retroactive to Jan. 1, 2012

Now is the time to invest in technology. Parata automation qualifies for the Section 179 incentive, depending on your tax situation. For more information, contact Parata at Of course, be sure to consult your accountant to explore potential tax savings for your pharmacy. She’ll no doubt have plenty to say.

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