The Tax Benefits of Modular Construction

When it comes to affordable construction, modular offices win hands down. We have discussed, in great detail, the different ways portable buildings can save you money. One area of importance that we feel doesn’t get enough coverage are the tax benefits associated with modular construction. Tax laws are always changing and if you’re not well versed in tax jargon it can be quite confusing trying to figure out. We are going to try and break it down in a simplistic form, so the information can be truly useful to you and your business.


In December of 2010, a provision was enacted allowing companies to take advantage of the updates to IRS Section 179 code. For purchases not exceeding two million dollars, for the 2010 and 2011 tax years, modular offices can be expensed up to $500,000. On the other hand, buildings constructed under conventional methods must be depreciated over the course of nearly forty years.

What does this mean? It means your business can invest in a modular office and recoup majority of the costs within the first year. Now this tax break is only effective until the end of the year, when the maximum write-off for modular offices will be reduced to $125,000. The purpose of the tax break is to encourage business to spend money and put some of the unemployed to work. If you have been thinking about investing into a modular building, we suggest you do so before year’s end.

If your company is considering a portable building as an option for growth, remember the savings. The ease in saving natural resources, the time you save in uninterrupted business, and the reduction in manpower all contribute to a healthier bottom line. Contact us about Starrco modular office systems to find out what these savings mean for you.

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