How The Tax Cuts And Jobs Act Affects Businesses Purchasing New Technology

The new Tax Cuts and Jobs Act allows businesses to write off 100% of the equipment they purchase in 2018. The change, which was retroactively set to September 27, 2017, is incentivizing organizations throughout Southern California to refresh their desktop computers, upgrade their phone systems, migrate their data to a new server, and much, much more.

Instead of stretching depreciation out over years – a requirement of the old tax law – now new purchases can be de-valued from day one.

"This law is a game-changer, and we’re already seeing the impact,” says Luca Jacobellis, President and CCO of Cal Net. "A number of our clients have already started re-investing in their businesses because, at the end of the day, that’s what’s going to help you grow."


The “new” write-offs are expanded forms of the bonus depreciations that have been around for years, and while many smaller businesses may have already been receiving 100% deductions under Section 179 of the current tax code, the new law expands protections and opportunities.

The result is a reduction in taxable income by way of a reduction in business income. Take a look at this example of a business owner  who purchases $1,150,000 worth of new equipment this year:


"Owners on the cusp of the income limit can now re-invest in what their businesses need to reach their full potential, from content management systems and collaboration tools, to firewalls and data back-ups," Luca says.


Other changes to business taxes under the new Tax Cuts and Jobs Act:*

  • Lower the corporate income tax rate permanently to 21% starting in 2018.
  • Establish a 20% deduction of qualified business income from certain pass-through businesses. Specific service industries, such as health, law and professional services, are excluded. However, joint filers with income below $315,000 and other filers with income below $157,500 can claim the deduction fully on income from service industries.
  • Allow full and immediate expensing of short-lived capital investments for five years. Increases the section 179 expensing cap from $500,000 to $1 million.
  • Limit the deductibility of net interest expense to 30% of earnings before interest, taxes, depreciation and amortization (EBITDA) for four years, and 30% of earnings before interest and taxes (EBIT) thereafter.
  • Eliminate net operating loss carrybacks and limits carryforwards to 80% of taxable income.
  • Eliminate the domestic production activities deduction (section 199) and modifies other provisions, such as the orphan drug credit and the rehabilitation credit.
  • Enact deemed repatriation of currently deferred foreign profits, at a rate of 15.5% for cash and cash-equivalent profits and 8% for reinvested foreign earnings.
  • Move to a territorial system with base erosion rules.
  • Eliminate the corporate alternative minimum tax.

* Info courtesy of  the Tax Foundation

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2018 CRN 500 Cal Net Technology Group

Cal Net Repeats Elite 150 Status On 2018 CRN MSP 500 List

LOS ANGELES, CA - For the second year in a row, Cal Net Technology Group, the premier provider of Managed IT Services in Southern California, has been honored with Elite 150 status on CRN’s MSP 500 list, which celebrates the most innovative solution providers in the industry.

Cal Net’s proactive approach to managed services and comprehensive technology offerings help small to mid-sized businesses navigate an ever-evolving IT environment, streamline employee workflows, set long-term goals, and improve the overall operational maturity level of their organization.

“In 2017, our focus was on transforming our people, process, and technologies to best position ourselves for our next level of success and growth,” says James Hwang, CEO of Cal Net Technology Group. “I’m more confident now than ever that our team at Cal Net is prepared, ready, and deserving of the successes that will be presented in 2018."

MSPs Help Businesses Grow

As the technology of business progresses, MSPs like Cal Net play a defining role in helping organizations leverage new tools and opportunities, allowing CEOs, Owners, and Entrepreneurs to focus on their true passion: growing their core business.

CRN is a brand of The Channel Company. Their annual MSP 500 list helps prospective partners narrow their outsourced and co-managed IT options by showcasing the most cutting-edge leaders in North America.

“It’s a privilege to be included in this group of elite MSPs for a second consecutive year,” says Cal Net President and CCO Luca Jacobellis. “We’re not only focused on today’s best practices, but what’s on the horizon. That’s why our team is continuously assessing and implementing new technologies, from cloud configurations to collaboration tools, to help our clients achieve sustainable, long-term success.”

CRN MSP 500 Categories

The annual MSP 500 list is divided into three categories: MSP Pioneer 250, recognizing companies with business models largely focused on the SMB market; MSP Elite 150, recognizing larger MSPs with a mix of on-premises and off-premises services; and the Managed Security 100, recognizing MSPs focused primarily on off-premise, cloud-based security services.

Since 1995, Cal Net has built an award-winning reputation on equipping clients with the right kind of technology, guidance, and support they need to reach their full potential. With locations in Los Angeles, Orange County, and the Inland Empire, the company offers Southern Californian businesses an extensive set of technology capabilities and a standardized customer experience framework that creates transparency in the partnership. Through this, Cal Net ensures that if they promise something, they deliver.

The MSP 500 list is featured in the February 2018 issue of CRN and available online at

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About Cal Net Technology Group

Cal Net Technology Group specializes in IT outsourcing, consulting, and managed services for small to mid-sized businesses across Southern California. Delivering a unique brand of outsourced and co-managed services to over 700 organizations, the company’s three-tiered Cal Plans set them apart by delivering an entire IT department experience at a fraction of the cost. Cal Net’s approach to Managed Services allows clients with existing IT staff to augment their skills in areas where they may need additional assistance. The process begins with a free assessment of an organization's technology infrastructure, from network security and data backups, to cloud configurations, unified communications, and enterprise content management.


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