Need more office space? You may pay up to $200 per square foot for site-built construction. Modular solutions can be priced as low as $40 per square foot! Companies use modular or in-plant applications for offices, clean rooms, environmental rooms, powder coat rooms, training rooms, waiting areas, smoking shelters, guard houses and much more! Send us a drawing, answer a few questions and we’ll have you a hard material quote in 48 hours. Need it installed? No problem, we’ll take care of the entire project for you!
Here are some MAJOR benefits to a modular system:
- Traditional construction takes time and often causes many disruptions within an organization. Who wants to work around construction for 6-8 months? Noise, dust and distractions kill productivity! Modular offices can be built in a manner of days versus months. Save thousands on labor and keep your productivity at high levels.
- In only 4 weeks, your entire office can be shipped to your location! Regardless of size, many panels are stock panels and already built. We even have access to offices/rooms that are slated as “quick ship” items. We can have these out to you in 5 days!
- Modular systems also provide flexibility for future changes. Modular panels can be taken down quickly and re-built in a new area, something traditional construction just wont allow.
- Current tax laws allow very favorable depreciation on modular offices, portable buildings and mezzanines. These products qualify for a 7-year depreciation period while conventional construction is depreciated over 39 years.
MORE ABOUT TAX BENEFITS: The current tax laws allow very favorable depreciation on modular offices, portable buildings and mezzanines. These products qualify for a 7-year depreciation period while conventional construction is depreciated over 39 years. Conventional construction, by its nature, becomes a permanent structural addition to a building, and thus it is classified as “real property” with the longer 39-year depreciable life. Modular office products, on the other hand, can be fully dismantled, relocated, and reassembled. This mobility, under the Modified Accelerated Cost Recovery System (MACRS), allows the modular office products to be classified as “tangible property” with a shorter 7-year depreciable life.
Example: Assume the cost of a new modular office system is $20,000. At the end of 8 years, (1/2 year depreciation in the year of acquisition and in the 8th year of the life of the office) the Modular Office System has fully depreciated and reduced taxable income by the original $20,000 cost. Conversely, the conventional construction has depreciated 21% and reduced taxable income by only $4,103. Assuming a 34% tax rate you pocket $5,405 in tax savings over the first 8 years.
|Cost:||8 Year |
|Modular Office System||$20,000||$20,000||34%||$6,800|
|8 Year Tax Savings||–||–||–||$5,405|
If the difference in the reduction of taxes ($5,405) were invested at 8% for the remaining 31 years, the result would be substantial and could approach $64,000. In addition to the above MACR depreciation, section 179 of the Internal Revenue Code allows you to expense up to $500,000 of tangible personal property purchased and includes a 50% first year bonus depreciation. Therefore, depending on the amount of your capital expenditures, you may be able to expense your entire project. Since tax laws are constantly being modified, we suggest that you consult with your company accountant to determine the application of these provisions.