Available Tax Incentives – Accelerated Depreciation

2018 Tax ChangesGilbarco Encore, Passport PX60 & Veeder-Root TLS450 PlusPatriot Capital

Our good friends at Patriot Capital have asked us to share one of the benefits of the new tax laws; expansion of Section 179 and Bonus Depreciation!

As Richard Browne, Patriot Capital Vice-President and Marketing puts it, “Bottom line, most dealers and jobbers will be able to deduct 100% of their equipment purchases in the first year, rather than over the traditional seven years.  This has some significant tax benefits for them.”

Click here to see the document that explains accelerated depreciation on page 1, summarizes the changes on page 2 and gives an example of how it works on page 3.

If you are looking to purchase new equipment and would like to take advantage of these expanded tax benefits, give us a call at 1.800.451.4021 today!  We can also work with Patriot Capital to help with your financing.

 

The John W. Kennedy Company appreciates your business and continued support!

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Why Wait – No Interest, No Payments Until 2018!

Why Wait? Qualified Customers Get No Payments on Equipment and Installation.

patriot-logoIf you are considering upgrading your site, there’s never been a better time.  Lock in today’s low interest rates through December 2022 when you finance your new gas pumps, point of sale, underground storage tanks or other fueling or in-store equipment.

Encore_700_wJWKOrder by November 30, 2017.  Equipment installed by December 31, 2017 is eligible for Section 179 tax savings in 2017.

Our friends and partners at Patriot Capital would love to help you finance those upgrades.

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See the attached credit application or give us a call at 1.800.451.4021 and ask us about this program!

Program available to qualified borrowers.

We appreciate your continued business and support!

Opinion: EMV At The Pump: Should You Wait Until 2020?

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The following article was written by Richard Browne of Patriot Capital for www.cspdailynews.com.  Read the original article here.

ATLANTA — There was a collective sigh of relief on Dec. 1, when Visa, followed quickly by MasterCard, announced a shift in the forecourt gas-pump liability date from 2017 to 2020. I believe there also was a smile in some boardrooms, as retailers that already have invested see an opportunity to capture gallons and inside sales.

Industry reports suggest that about 33% of dispensers in the market are capable of processing payments to Europay MasterCard Visa (EMV) data-security standards with either a software or small hardware upgrade. This represents dispensers installed since 2011, when both Wayne and Gilbarco started shipping “EMV-ready” dispensers. Both manufacturers are reportedly close to or have released the required software to enable EMV, and there’s high probability that many networks will be processing EMV from pumps by mid- to late 2017.

So what?

Consumers are quickly becoming used to using a chip card. They are aware of the reason for it: increased security. Crooks are aware of EMV, and can quickly identify fuel dispensers that have—or don’t have—EMV payment enabled.

I believe we’ll see two things happen:

  • Consumers will shift their buying behavior to EMV-enabled gas pumps, starting in 2017. A high percentage of your customers have had one of their cards breached in the past and want the most secure transaction possible. In Europe and Canada, which have completed their implementation, retailers saw gallons shift to “secure” EMV sites from those that hadn’t yet been upgraded. Switching costs are low in our industry; it’s very easy for a customer to drive another block for a safer experience.
  • Criminals will have a shrinking number of sites to target. About 10% of dispensers are replaced each year. This suggests that, with no acceleration in upgrades, more than 50% of dispensers will be EMV-enabled in 2018, and 70% in 2020. The crooks have got to eat, and they will have half the sites to target that they had in 2015. Combine this with EMV implemented at restaurants and retail, and the potential places to commit card fraud becomes a small target.

Gray Taylor, executive director of Conexxus, said that Visa and MasterCard’s delay announcements appear to not clearly delay liability for retailers who experience higher fraud rates or those accepting foreign-issued cards. “We don’t see this announcement as a true game delay, but a bit of breathing room,” he said.

It is important to review your fraud liability with your processor, and understand Visa and MasterCard’s plans and how increased fraud may affect you.

It’s highly unlikely that we’ll see the liability upgrade deadline move again. With the installed EMV base naturally approaching 80% or more dispensers, the arguments that caused the date to move have less sway, and all other U.S. payments markets will have been EMV-enabled for five years.

Waiting will get more expensive. It’s generally anticipated that the new administration’s economic plans will result in higher inflation and interest rates. Combine this with promised lower tax rates, which effectively reduce the benefits of capital depreciation and makes equipment more expensive on a net-cost basis, and increases in labor costs, and waiting will be expensive. For multisite operators, the change in bonus depreciation from 50% today to 30% in 2019 and 0% in 2020 can have a significant cash-flow impact.

Competitors that have upgraded to new pumps will have enhanced marketing capabilities that the newest pumps provide. Video screens and contactless payment provide marketing options that can increase adoption of customer-loyalty programs and drive more traffic into your store.

The bottom line: Delaying pump EMV upgrades means potential market-share loss and higher fraud risk for your site. Consumers—and crooks—will know who’s made the move.

The John W. Kennedy Company appreciates your business and continued support!

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Drive Home 2016 With Two Great Encore Financing Options

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Get ready for EMV and enhance your experience!  Patriot Capital has two great financing alternatives from Gilbarco they’d like you to know about before the next price increase:

Gilbarco Bundle $2000 Financing Rebate.
Gilbarco has launched their Fall bundle promotion, providing bundle savings of up to $13,500 per site.  Customers who utilize the Passport / Encore 700 4 crate bundle and who finance with Patriot will receive a $2,000 rebate check after final funding.

Don’t Make a Payment Until 2017
Order the Encore 700 S to be eligible for no payments until January 2017 on the dispensers and related installation costs.  If you are financing with Patriot, order now to, other than a one month security deposit, make no additional payments until 2017.

Taking advantage of these promotions provides you with many benefits, including:

  • an enhanced customer experience at the pump and the opportunity to grow your station’s sales with Applause TV
  • being EMV ready on the forecourt
  • purchasing ahead of future price increases
  • capturing Section 179 tax benefits to create cash flow advantages* (tax disclaimer at bottom)

* Please consult your tax advisor for advice regarding your particular situation.  Patriot Capital does not provide tax advice.

You can view the official bulletin from Patriot Capital here.

The John W. Kennedy Company appreciates your business and continued support!

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Universal Announces New 4″ and 5″ Offsets

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universal-303-shortyUniversal Valve Co. has announced that the Model 303 “Shorty” line of offset adapters will now include 4″ and 5″ variants.  The offset adapters are designed to prevent any strain on piping and dispenser boxes, as well as allowing for fast and easy dispenser upgrades.

If you’re out at PEI in Atlanta on October 19-21, be sure to check out Universal at Booth 4623.

 

 

 

 

The John W. Kennedy Company appreciates your business and continued support!

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Gasboy Discontinuing Production of Atlas Retail Models and Encoding Equipment

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Effective December 1, Gasboy will be ending production on the Atlas Retail Mechanical (8700K Series) and Electronic (8800K Series) line of pumps and dispensers, as well as card and key encoding equipment and accessories.  This is part of an ongoing modernization effort to provide up-to-date access control devices for the PLUS Fleet Management System.  Because of those efforts, the need for older key and card encoding equipment has been eliminated.  Gasboy will continue to accept orders for these products up until the effective date, and will also provide spares support for end of life products.

The company will continue to produce the Atlas Commercial Electronic (9800K Series) and Mechanical (9100K Series) line of pumps and dispensers.  For more information, you can read the official announcement here.

The John W. Kennedy Company appreciates your business and continued support!

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