HyperActive Technologies, which develops and deploys leading drive-thru technology solutions for the quick service restaurant industry, announces the, “2012 Holiday Tax Blowout Bonanza,” to remind operators that the current Section 179 first year expense election on capital equipment purchases and the bonus depreciation provision provided by the U.S. government, is scheduled to expire December 31, 2012.
After expiration, quick service restaurants acquiring machinery and other depreciable assets will fall back to traditional depreciation methods for determining annual deductions. This will significantly reduce the first-year depreciation deduction on most business assets, extending the time over which quick service restaurants will realize the benefits of reduced taxes and effectively increasing the initial costs of acquiring business assets, such as drive-thru management systems.
According to Joe Porfeli, chief executive officer, HyperActive Technologies, the finance team at HyperActive Technologies is prepared to help quick service restaurants navigate the tax code to help them take advantage of the expense elections and increased tax depreciation for the purchase of order confirmation displays, kitchen timers, and drive-thru management systems.
HyperActive Technologies manufacturers the world’s most reliable order confirmation display HyperView order confirmation display, HyperView PE, which provides Power over Ethernet (PoE) in a single CAT5 cable, QTimer, and DriveTime Cloud, the company’s innovative new drive-thru timer that provides and stores data via cloud computing.
“Many QSRs do not realize the implications of waiting until 2013 to purchase drive-thru equipment,” says Porfeli. “Not only can reliable drive-thru equipment improve speed of service and profitability in the near-term, but waiting until 2013 to purchase new equipment could be a poor investment strategy, particularly if the QSR is in a position to achieve maximum tax benefit by taking advantage of the 2012 Section 179 first year expense election and the 50 percent first year depreciation bonus.”
Additional first-year depreciation (or bonus depreciation) was first introduced by the Job Creation and Worker Assistance Act of 2002. Most recently, the bonus depreciation provisions were again extended and expanded by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. HyperActive Technologies is encouraging quick service restaurants to consult with their accounting or finance officers to determine if new equipment purchases can qualify for the deduction and meet required service times for new assets. In addition, the Section 179 deduction limit dropped from $500,000 in 2011 to an inflation-adjusted $139,000 in 2012, and will drop to $25,000 in 2013.
The HyperActive Technologies Advantage
Porfeli points to a general example* regarding equipment purchases:
2012 Equipment Purchases: $150,000
First Year Expense Write Off: $139,000
($139k = Maximum in 2012)
50 Percent Bonus First Year Depreciation: $5,500
(150k – $139k = $11, x 50 Percent)
Normal First Year Depreciation: $1,100
(20 percent in each of five years on remaining amount)
Total First Year Deduction: $145,000
($139k + $5.5k + $1.1k)
Tax Savings: $50,960
($146.5k x 36% tax rate)
Equipment cost after Tax Savings: $99,040
($150k less all tax deductions)
“Our goal is to help QSR brands succeed not only because of our innovative technology solutions, such as HyperView, but also because we understand the financial commitment operators are making to improve their businesses and we want to make sure they have every opportunity to reap the tax benefits they deserve,” says Porfeli.
HyperView, which has approved vendor status with more than 40 brands, including Taco Bell, Jack-in-the-Box, Carl’s Jr., Hardee’s, Subway, Wendy’s, and Arby’s, among others, offers:
-The lowest cost of ownership of any OCD in the quick service restaurant industry
-Only OCD to hold a NEMA Four certification – making it impervious to weather
-Lifetime warranty against moisture and dust
-An optically bonded, glare-free cover glass
-Simple installation and operation
-Elimination of fans or heaters
Brother to the HyperView, HyperView PE delivers PoE via a single CAT5 cable, further eliminating heat and extending unit life, ultimately delivering the lowest cost of ownership on the market. The single CAT5 cable also eliminates the need to run power to the OCD post. Video and diagnostic information is also transmitted over the same cable.
The Ethernet-based solution enables any computer on the restaurant’s network to control what is displayed on the OCD, even from a remote location. The unit’s backlight is rated L70 brightness at 100,000 hours, the industry’s highest performance.
According to Porfeli, HyperView PE makes good on the company’s promise to deliver an advanced technology that has eluded other OCD manufacturers: the use of LED lighting, which minimizes output and heat. And, the use of optically bonded cover glass provides the highest visual quality of any OCD on the market – reducing glare and reflection to further enhance viewing during hours of direct sunlight.
Another addition to the HyperActive portfolio is DriveTime Cloud, a game-changing drive-thru kitchen timer that harnesses the benefits of cloud computing technology, leveraging computing power and data storage from the Internet instead of relying on on-site CPU power. Operators can access application software and data stored at remote locations and provides improved manageability and less hardware maintenance.
DriveTime Cloud provides both single store and enterprise-wide reports, which are available anywhere via a web browser in real-time and with no additional software required, making it the industry’s most affordable drive-thru timer.
HyperActive Technologies offers the industry’s leading warranty and extended, multi-year advanced exchange program. Parts and replacement products are available within a few days of any identified issues instead of the traditional, multi-week time it takes other companies to repair products. Comprehensive product advancements are provided as part of an annual support and maintenance program. Leasing and special financing options are available for all of the company’s products.