What Industrial Robotics Businesses Need to Know About Tax Reform

With the recent passing of the Tax Cuts and Jobs Act, there’s a lot of uncertainty surrounding how individual businesses will be affected, as well as what’s the most cost-effective response to the new legislation.

Industrial robotics businesses face the same uncertainty – how are 2017 filings effected? What about 2018 filings? Are there still research and experimentation credits? Will everyone see a tax decrease?

To help you understand what’s in the recent tax legislation, here are some opportunities, and some potential pitfalls, that industrial robotics businesses should be on the lookout for.

Potential Opportunities Created by the New Tax Legislation

Industrial robotics companies can take advantage of several different opportunities in the new tax legislation. The first and most obvious advantage presented by tax legislation is increased investment opportunities. A lower tax rate means industrial robotics companies will have more money to invest in themselves, in capital assets and in their workforce.

The other major opportunity afforded all industrial robotics businesses is the immediate expensing of capital expenditures – the quicker you deduct, the more money you save. Additionally, the export of goods and services could be eligible for a special deduction, while companies with less than $25 million in gross receipts have access to new accounting methods.

Market Intelligence News & Insights:

North American Robot Orders Hold Steady in Q1 2025 as A3 Launches First-Ever Collaborative Robot Tracking

Robot orders in North America remained essentially flat in the first quarter of 2025, with companies purchasing 9,064 units valued at $580.7 million, according to new data released by the Association for Advancing Automation (A3). Compared to Q1 2024, this represents a 0.4% increase in units ordered and a 15% rise in order value, signaling continued demand and increased investment in higher-value automation systems.

Read More

Potential Pitfalls Created by the New Tax Legislation

There are plenty of opportunities created by tax reform, but there are potential pitfalls too. Most directly, much of the new tax legislation is unclear. In some places, it’s noted that further guidance will be required by the IRS. This uncertainty, partially a result of how quickly legislation was passed, makes tax planning difficult.

In addition to issues of clarity, the new tax legislation does not treat the sale of self-created property as a capital asset, which results in ordinary income. This could impact M&A transactions and the way some deals are constructed. Also, international regulations have become more complex, coming with a few unintended consequences, and some taxpayers may actually see their taxes increase.

Industrial robotics businesses have to prepare for upcoming changes to the U.S.’s tax code. While much of the impact will be felt in 2018 filings, some changes are being implemented immediately, with potential opportunities and potential pitfalls to keep an eye on.