Year: 2023

Section 179 for 2023 at a Glance

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What is the Section 179 Deduction

Most people think the Section 179 deduction is some mysterious or complicated tax code. It really isn’t, as you will see below.

Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

How Section 179 works:

In years past, when your business bought qualifying equipment like a forklift, terminal tractor or container handler, (see our line-up) it typically wrote it off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).

Now, while it’s true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.

And that’s exactly what Section 179 does – it allows your business to write off the entire purchase price of qualifying equipment for the current tax year.

This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179 to purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on the 2023 tax return (up to $1,160,000). See example below.

Limits of Section 179

Section 179 does come with limits – there are caps to the total amount written off ($1,160,000 for ), and limits to the total amount of the equipment purchased ($2,890,000 in ). The deduction begins to phase out on a dollar-for-dollar basis after $2,890,000 is spent by a given business (thus, the entire deduction goes away once $4,050,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.

Who Qualifies for Section 179?

All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2023 should qualify for the Section 179 Deduction (assuming they spend less than $4,050,000).

Most tangible goods used by American businesses, including “off-the-shelf” software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction.

For basic guidelines on what property is covered under the Section 179 tax code, please refer to this list of qualifying equipment. Also, to qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service between January 1, 2023 and December 31, 2023.

For 2023, $1,160,000 of assets can be expensed; that amount phases out dollar for dollar when $2,890,000 of qualified assets are placed in service.

What’s the difference between Section 179 and Bonus Depreciation?

Bonus depreciation is offered some years, and some years it isn’t. Right now in 2023, it’s being offered at 80%.

The most important difference is both new and used equipment qualify for the Section 179 Deduction (as long as the used equipment is “new to you”), while Bonus Depreciation has only covered new equipment only until the most recent tax law passed. In a switch from recent years, the bonus depreciation now includes used equipment.

Bonus Depreciation is useful to very large businesses spending more than the Section 179 Spending Cap (currently $2,890,000) on new capital equipment. Also, businesses with a net loss are still qualified to deduct some of the cost of new equipment and carry-forward the loss.

When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business had no taxable profit, because the unprofitable business is allowed to carry the loss forward to future years.

Section 179’s

The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction. Simply multiply the cost of the equipment, vehicle(s), and/or software by the percentage of business-use to arrive at the monetary amount eligible for Section 179.

To take advantage of Section 179 for 2023, equipment must be in service by year’s end, so now is the time to act. Contact us at 800-322-5438 for equipment pricing and calculate your tax savings for 2023.

Warehouse Heat Retention Tips

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While our local markets are not near as cold as other parts of the country, keeping your warehouse warm during the winter can be a challenging task, but there are several strategies you can employ to maintain a comfortable temperature while also being energy-efficient. Here are some tips to help you keep heat in your warehouse during the winter:

Insulate the Building: Proper insulation is crucial to reduce heat loss. Make sure your warehouse is well-insulated in the walls, roof, and floor. If your warehouse is poorly insulated, consider adding insulation materials like fiberglass, foam board, or spray foam.
Seal Gaps and Leaks: Identify and seal any gaps or leaks in doors, windows, walls, and the roof. Weatherstripping and caulking can be used to seal gaps and prevent cold air infiltration.
Upgrade Doors and Windows: Install energy-efficient doors and windows that have good insulation properties. Double-paned windows and insulated doors can significantly reduce heat loss.
Use High-Performance HVAC Systems: Invest in energy-efficient heating, ventilation, and air conditioning (HVAC) systems. Consider options like radiant heating or high-efficiency gas heaters to provide even and consistent heating.
Zoning and Programmable Thermostats: Implement zoning systems to heat only the areas that are in use. Additionally, use programmable thermostats to set lower temperatures during non-working hours and weekends.
Use Ceiling Fans: Ceiling fans can help distribute warm air throughout the warehouse. Set them to run in reverse during the winter to push warm air down.
Consider Space Heaters: Use energy-efficient space heaters in areas where employees work to provide localized warmth without heating the entire warehouse.
Install Insulated Curtains or Partitions: Create insulated partitions within the warehouse to segregate colder and warmer areas. This can be especially helpful if only a portion of the warehouse requires heating.
Proper Maintenance: Regularly maintain your heating system, including cleaning and changing filters, to ensure it operates at peak efficiency.
Air Sealing: Ensure that your warehouse is airtight by addressing any gaps or openings in the building envelope.
Employee Awareness: Educate your employees about energy conservation and encourage them to dress warmly during the winter.
Monitor and Adjust: Continuously monitor the temperature and energy usage in your warehouse. Adjust heating settings and insulation as needed to optimize comfort and efficiency.
Consider Renewable Energy: If feasible, consider incorporating renewable energy sources like solar panels or a geothermal heat pump system to reduce your energy costs.
Maintain Adequate Ventilation: While sealing your warehouse is important, ensure that you maintain proper ventilation to prevent indoor air quality issues. Install energy-recovery ventilation systems if necessary.
Consider Industrial Thermal Curtains: Industrial thermal curtains are designed to separate different temperature zones within a warehouse. They can help contain heat in specific areas and improve energy efficiency.

Remember that the specific strategies you choose will depend on the size of your warehouse, your budget, and the climate in your region. It’s often a good idea to consult with an HVAC professional or energy expert to help design and implement an effective heating strategy for your warehouse.

Four Traits of Safety-Minded Companies

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As managers and owners, we want a safe work environment for all of our employees. Unfortunately, all too often it escapes us. Time passes quickly, and initiatives that were once important standards become guidelines or even merely suggestions. How can we ensure that when we put safety measures in place, they will stay in place as employees come and go in a business climate that is constantly in flux?

While we lack the space to answer this question in full detail here, there are a few major approaches to providing a safe work environment that transcend industries, equipment and facilities. We outline these “hows and whys” of workplace safety below.

Since 1970, OSHA has worked to create a safer workplace for all employees, and their mission has been very successful. However, accidents still happen, and not only at companies willfully violating OSHA standards. Sometimes safety goes beyond meeting standards due to unique circumstances in certain operations.

The following are a few approaches to safety that have helped both large and small companies to achieve better workplace safety, fewer incidents and accidents, lower costs, more productivity and better workplace attitudes.

Safety is integrated with company mission

Safe companies put as much emphasis on doing things safely as on doing them productively. From day one, every employee knows they are working for a company that would rather they do their job safely than quickly. These employees will lockout a piece of equipment when something goes wrong, will replace light bulbs that need it instead of ignoring them and will report unsafe behavior or unsafe conditions.

Training never ends

Employees are involved in ongoing training – how to lift more safely, how to sit properly in a chair, how to operate a certain piece of equipment and so on. Your business is fluid: things change; equipment changes; and equipment, building space and employees are added. As your conditions change, your training must address these changes. Training for the safest work environments is never a one-time event or a two- or three-day training initiation. It is an ongoing pursuit of the safest possible work facility. It should be a goal of all employees to see that their coworkers go home safe every night.

Involvement at all levels

While involvement in a safe work environment must start from the corner office, the mission and strategy it is also important to ensure that every employee knows that they are involved and responsible. It is a good idea to create safety teams for every facet of your business, to revolve people in and out of those teams, and to have them conduct frequent facility or department reviews to identify potential threats. The most successful companies have reward systems for reporting anything that could be a potential threat, even if it is as minor as a sharp corner on a coat rack. This keeps all employees engaged in creating a safe work environment.

Accountability

Once you have established your safety mission and mapped out your strategy, everyone involved must be held accountable. No one can shirk their safety responsibilities. If a sharp corner on a coat rack is missed and someone gets cut, find out why no one noticed. Are they doing regular inspections? If safety standards are not being met, it is the leadership’s job to find out why and fix it. Everyone must know that if an accident happens on their watch, it must be accounted for and a plan must be designed to ensure that it will not happen again.

A truly safe, productive and profitable workplace is attained through ongoing efforts, and these are just a few of the major traits of successful organizations. We encourage you to seek the assistance of OSHA, NIOSH or other private safety consultants to help you organize and strategize your safety plans.

At Cal-Lift we believe it is one of our primary responsibilities to ensure that we all get home safe to our families each and every day.

The Benefits of Clean Floors in Your Warehouse and Storage Operation

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Clean floors have many benefits besides improving safety. Your manufacturing and warehousing operation benefits in other ways, including:

  1. Floor Cleaning: Sweepers and scrubbers are specifically designed to efficiently clean warehouse floors. Sweepers use rotating brushes and suction systems to collect dust, debris, and loose particles from the floor, ensuring a tidy environment. Scrubbers, on the other hand, utilize water, cleaning solutions, and scrubbing brushes to remove dirt, stains, and grime from the floor surface. 
  2. Improved Safety: A clean warehouse floor contributes to a safer working environment. Sweepers and scrubbers help eliminate hazards such as loose debris, spills, and dust, reducing the risk of slips, trips, and falls for your employees. By maintaining a clean floor, you create a safer space for material handling equipment and reduce the chances of accidents caused by obstructions.
  3. Increased Productivity: A clean and organized warehouse promotes efficient operations. By utilizing sweepers and scrubbers, you can quickly clean large floor areas, minimizing downtime and allowing your staff to focus on core tasks rather than manual sweeping or mopping. This can lead to increased productivity, as your employees can work in a clutter-free and orderly environment.
  4. Equipment Maintenance: Warehouse floors can accumulate dust, dirt, and debris over time, which may damage your material handling equipment. Sweepers and scrubbers help remove these particles from the floor, reducing the chances of machinery clogging, abrasive damage to wheels or belts, and other equipment issues. Regular cleaning can extend the lifespan of your equipment and reduce maintenance costs.
  5. Compliance with Regulations: Depending on your location and industry, there may be specific regulations or standards regarding warehouse cleanliness and safety. Using sweepers and scrubbers can help you meet these requirements, ensuring your warehouse is compliant with health and safety guidelines. Compliance not only helps you avoid penalties but also promotes a positive image for your business.
  6. Environmental Benefits: Many modern sweepers and scrubbers are designed to be eco-friendly. They often employ features such as water recycling systems, energy-efficient motors, and reduced water consumption, which help minimize their environmental impact. By using sustainable cleaning equipment, you can contribute to your warehouse’s overall sustainability goals.

Remember that the specific benefits and effectiveness of sweepers and scrubbers may vary based on factors such as the size of your warehouse, the type of flooring, the level of foot and vehicle traffic, and the nature of the operations carried out within your facility. It’s important to select the appropriate equipment and maintenance routine that suits your specific requirements.

California’s CORE Is Updated for 2023-2024; What You Need to Know

Barry Material Handling Equipment, Material Handling News, New Forklifts, Regulatory, Terminal Tractors , , , ,

What is CORE?

The California Air Resources Board (CARB), in partnership with CALSTART, launched the Clean Off-Road Equipment Voucher Incentive Project (CORE) to accelerate the purchase of zero-emission off-road equipment in California.

CORE, analogous to the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), is a project intended to encourage California companies to purchase or lease currently commercialized zero-emission off-road freight equipment by providing a streamlined voucher process to offset the higher cost of such technologies.

CORE voucher amounts are based on the incremental cost difference between traditional equipment and new zero-emission alternatives. Additional funding is available for charging infrastructure, equipment deployed in pollution overburdened communities (DACs), and equipment purchased by small businesses.

How You Can Participate in CORE

Criteria for Eligibility:

Any off-road equipment Purchaser in California is eligible. If you want to participate, the purchased equipment must be domiciled and operated for at least three years in California after the voucher redemption date. Equipment Purchasers must also submit activity reports for three years. 

The fleet size does not affect voucher amounts, and equipment Purchasers are not limited to the number of vouchers they can apply for. 

Steps for Participating in CORE:

  1. Select equipment that suits your needs from the Eligible Equipment Catalog.
  2. Contact a CORE-approved Dealer. The Dealer will submit the voucher request on your behalf.
  3. Provide the dealer with equipment domicile location, small business designation, and other information.
  4. Purchase your CORE-discounted equipment.

Review the CORE Implementation Manual for additional information.

Eligible Equipment

From lawn and garden equipment and agriculture equipment to the equipment our customers use (cargo container handlers and large forklifts) there is a wide variety of equipment that is eligible for vouchers. See the full list at the CORE website. Our customer’s eligible equipment includes:

Loaded Container Handlers from Taylor Machine Works

Large Capacity Forklifts

All voucher figures are base numbers.  Additional funds are available for:

  • Chargers: up to $30,000 in additional incentives
  • Disadvantage Community (DAC): 10% of voucher amount
  • Small Business: 15% of voucher amount

Having a partner to help you navigate the CORE process and get your equipment in service is key to a successful program. Contact us today for more information on any of these models and potential vouchers, at 800-322-5438. We’re proud to represent Taylor Machine Works products in California, Arizona and Nevada.

Tips to Improve Dock Safety

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Improving safety on a warehouse dock is crucial for preventing accidents and maintaining a secure work environment. Here are some recommendations to enhance safety:

  • Conduct regular safety training: Train all dock workers on proper safety protocols, including equipment operation, handling hazardous materials, and emergency procedures. Offer refresher courses periodically and ensure everyone understands safety regulations.
  • Provide personal protective equipment (PPE): Supply all workers with appropriate PPE, such as hard hats, safety glasses, high-visibility vests, steel-toed boots, and gloves. Encourage their consistent use and enforce PPE policies.
  • Maintain clear communication: Establish effective communication systems, such as two-way radios or intercoms, to allow clear communication between dock workers, truck drivers, and supervisors. Ensure everyone can effectively relay information, warnings, and instructions.
  • Implement traffic management: Develop a comprehensive traffic management plan for the dock area to prevent collisions and improve pedestrian safety. Clearly mark pedestrian walkways and separate them from vehicle lanes. Install signage and mirrors to enhance visibility, and consider using barriers or guardrails where necessary.
  • Ensure proper lighting: Adequate lighting is essential for a safe dock environment. Install sufficient lighting fixtures to eliminate dark areas and shadows that could obscure visibility. Regularly inspect and maintain lighting systems to address any issues promptly.
  • Regular maintenance of equipment: Establish a preventive maintenance program for all dock equipment, including forklifts, loading ramps, and conveyor systems. Regular inspections and maintenance help identify potential hazards, preventing equipment malfunctions that could lead to accidents.
  • Promote good housekeeping: Encourage a clean and organized work environment. Ensure that walkways, ramps, and loading areas are free of clutter, debris, spills, and obstacles that can cause slips, trips, or falls. Provide adequate waste management systems to prevent accumulation of waste materials.
  • Implement safety barriers and guards: Install safety barriers, guardrails, and bollards to protect pedestrians and prevent unauthorized access to restricted areas. Implement dock edge protection systems to prevent accidental falls from the dock.
  • Use warning signs and labels: Clearly display warning signs and labels to communicate potential hazards, such as restricted areas, low clearance, slippery surfaces, or areas with moving equipment. Ensure signage is prominently visible and easily understood.
  • Regular safety inspections: Conduct routine safety inspections to identify potential hazards, non-compliance with safety protocols, or equipment issues. Encourage reporting of safety concerns by workers and promptly address any identified problems.
  • Emergency preparedness: Develop and communicate emergency procedures specific to the dock area. Clearly mark emergency exits, fire extinguishers, and other safety equipment. Conduct drills periodically to ensure workers are familiar with emergency protocols.
  • Encourage employee involvement: Involve employees in safety initiatives by establishing a safety committee or encouraging their participation in safety discussions. Encourage workers to report safety concerns, near-miss incidents, or potential hazards, and reward proactive safety behavior.

Partnering with a professional material handling company gives you insight from industry professionals whose goal is to help you create a safe working environment for anyone that operates in or around your docks.

Cal-Lift Celebrates Recognizes and Celebrates Forklift Safety Day

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What You Can Do to Recognize Forklift Safety Day

Forklift Safety Day is a great opportunity to review your forklift safety program and/or plan. And if you don’t have a program or plan, this would be a great opportunity to create one! 

Start with Training

  • Are all of your forklift operators up-to-date on their training. Remember, forklift operators must receive refresher training every three years, and be evaluated on the equipment that they operate. 
  • How well do you know your operators? Download our Forklift Operator Questionnaire to get to know their experience operating lift equipment.

Inspections and Maintenance

  • We know that pre-shift inspections of all equipment are required by OSHA. But did you know that by taking a few minutes to inspect equipment not only improves safety, it helps you identify small issues before they blossom into giant repair or injury and damage headaches.
  • Planned Maintenance – This is a great opportunity to review your current PM program. Is it being executed properly according to intervals  you require? Is the Planned Maintenance complete and thorough? A thorough and robust Planned Maintenance program is key to maintaining safety and productivity of your forklifts. Learn more about our Service Department.

For more information on safety, planned maintenance, service or repair of your forklifts, please visit our website at www.cal-lift.com, or give us a call at 800-322-5438.

Review and Update Safety Policies

Review and update safety policies: Take the opportunity to review and update your organization’s forklift safety policies and procedures. Ensure they align with current best practices and regulations. If necessary, introduce new policies to further enhance safety measures.

Promote a Culture of Safety

Encourage a culture of safety within your organization. Encourage employees to report any safety concerns or near-miss incidents. Recognize and reward individuals or teams that consistently prioritize forklift safety.

Forklift Safety is No Accident

We’re here to help you maintain safety in your forklift operations by ensuring all your employees that might operate a forklift, know the limitations and dangers of forklifts AND to ensure they are all operating a peak efficiency and safety. To speak to one of our professional abo

Forklift Safety Inspections

Barry Forklift Service, Regulatory, Safety , , , ,

Forklift Safety Day is fast approaching and we want to help raise awareness to help improve safety on, and around the forklifts we operate. Pre-shift inspections have been the law for two decades and besides maintaining compliance, the make great sense in terms of employee safety, productivity and the overall health of your business. Forklift inspections are important for:

  1. Safety: Forklifts are powerful and heavy machinery used to move and lift heavy loads. Regular inspections ensure that forklifts are in safe working condition, minimizing the risk of accidents or injuries to operators and bystanders. Inspections help identify potential hazards, such as faulty brakes, worn-out tires, malfunctioning controls, or hydraulic leaks, which can be addressed before they lead to accidents.
  2. Compliance: Forklift inspections are often required by law and regulatory bodies to ensure compliance with safety standards. In many countries, employers are legally obligated to maintain a safe working environment and regularly inspect their equipment, including forklifts. Adhering to these regulations helps avoid penalties, fines, or legal issues.
  3. Preventive Maintenance: Regular inspections allow for early detection of mechanical issues or wear and tear on various components. Identifying problems in advance enables proactive maintenance and repairs, preventing breakdowns or major failures that could lead to costly repairs, downtime, and interruptions in operations. By addressing minor issues promptly, more significant and costly problems can be avoided.
  4. Equipment Longevity: Forklifts are a significant investment for businesses, and proper maintenance can extend their lifespan. Regular inspections help identify areas that require attention, such as lubrication, filter replacement, or component adjustments. By keeping the forklift in good working condition, its overall longevity is increased, reducing the need for premature replacements and saving costs in the long run.
  5. Operator Confidence: Consistently inspecting and maintaining forklifts boosts operator confidence. When operators know that the equipment they are using is well-maintained and safe, they can perform their tasks more efficiently and with peace of mind. This can lead to improved productivity, reduced operator errors, and increased overall operational effectiveness.

Overall, forklift inspections are vital for ensuring the safety of operators and those around them, maintaining compliance with regulations, preventing accidents and breakdowns, extending equipment life, and optimizing productivity in the workplace. Below is a video that helps walk you through an inspection of your lift trucks.

Our forklift inspection checklists for electric and IC forklifts are also an important tool to help you conduct thorough inspections of your lift trucks. These were developed with inspection suggestions directly from OSHA. Remember to also inspect any additional equipment you’ve added to the forklift, safety lights and other products, attachments etc…

Download our Electric Forklift Inspection Form

Download our IC Forklift Inspection Form

We believe forklift safety starts with operating a safe forklift. For any questions about service or parts as a result of your inspections, please contact us at 800-322-5438.

Cal-Lift Achieves Premier Partner Status with Kalmar Ottawa for 2022

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We are proud to announce that we have achieved Premier Partner Status with Kalmar Ottawa for 2022. We are equally proud to represent American-made Kalmar Ottawa Terminal Tractors and Yard Spotters.

Kalmar sets a high bar for product sales, service, parts and customer service for their users and we are pleased that our team has met these objectives and service parameters.

We will continue to strive to provide our customers with the right Kalmar product for their unique applications and back it up with superior service and parts. Visit our Kalmar showroom to learn more about their line-up. The Kalmar Ottawa T2 has set the bar even higher providing the optimal terminal tractor for your operation. All Kalmar Ottawa’s are built at the US manufacturing plant in Ottawa, Kansas. Along with being the original manufacturer of terminal tractors, Kalmar Ottawa was the first to offer machines with an automatic transmission, a rear door entry, integral air conditioning units, power cab tilt and ABS brake systems. Kalmar Ottawa terminal tractors were also the first on the market to receive DOT/EPA certification – a paramount classification for distribution and industrial customers whose operation entails shunting trailers between yards via public streets and roadways. 

We value and appreciate all our great employees and customers that made this possible.