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RIPON, Wis. — Alliance Laundry Systems announced Friday a planned $23 million investment to increase production capacity for current and new products, and to purchase tooling and equipment for its plant here. Alliance Laundry Systems designs, manufactures and markets commercial laundry equipment under the brand names of Speed Queen, Huebsch, UniMac, IPSO and Cissell.

The expansion will add more than 20,000 square feet to the existing assembly, metal stamping and press shop facilities. Plus, it will add more than 250 skilled jobs to the company’s 1,300-member Ripon workforce.

Alliance expects the project, which will not impact ongoing machine production, to be completed by the summer of 2013.

It is expected to increase Alliance’s production capacity for small-chassis washers and dryers by more than 40%, ensuring that it will be able to meet increasing customer demands for what the company calls “the most reliable and durable products available on the market today.”

“Alliance Laundry is experiencing unprecedented growth across our product portfolio,” says Mike Schoeb, the company’s president/CEO. “Demand for our small-chassis products, domestically and internationally, is driving this phase of our expansion strategy. We have the best distribution network in the industry, and our customers depend on us to deliver outstanding equipment on schedule. This expansion will guarantee that we can continue to meet that expectation.”

The Wisconsin Economic Development Corp. approved up to $1.5 million in tax credits for the project, and the Fond du Lac County Economic Development Corp.’s County Special Allocation Revolving Loan Fund has provided a $500,000 performance-based loan.

The WEDC incentive is tied directly to job creation. It will distribute tax credits to Alliance annually in direct relation to the number of jobs retained over a 54-month period, based on the number of new, full-time positions created.

For local media coverage of the announcement, click:

WLUK Fox 11 (Green Bay, Wis.)

WGBA NBC 26 (Green Bay)

RIPON, Wis. — Self-service laundry owners have approximately two months left to take advantage of 2010 Tax Relief Act incentives, according to Alliance Laundry Systems, a manufacturer of commercial laundry equipment.

The tax incentive allows laundry store owners to get 100% bonus depreciation when they purchase new equipment and place it into service in 2011. Bonus depreciation is not limited to taxable income; it can create a net operating loss that can be carried back two years to offset taxable income in those years and result in an immediate tax refund, Alliance says.

There is no cap on the amount of equipment that can be depreciated under this provision.

The Section 179 Deduction limit has been raised to $500,000. A business with total equipment purchases—both new and used—that don’t exceed $2 million can expense the first $500,000 (subject to certain limitations) of those purchases for the 2010 and 2011 tax years.

Store owners can combine 100% bonus depreciation with the Section 179 Deduction for purchases incorporating both new and used equipment. Additionally, for the first time, certain leasehold improvements, such as updating or refurbishing a laundry, will qualify for bonus depreciation, Alliance says.

These tax incentives dramatically accelerate cash flow and reduce the time it takes to pay back the investment on new equipment, the company adds.

For more information about these incentives, it’s recommended that you contact a professional tax adviser.