Section 179 Tax Deduction Benefits

If your business is planning to purchase or finance equipment in 2025, now is the time to take advantage of powerful tax incentives. The Section 179 Deduction allows businesses to deduct the full cost of qualifying new or used equipment and software—up to $2.5 million—in the year it’s placed into service.*

Thanks to recent legislation, 100% bonus depreciation has also been fully restored for 2025, giving businesses even greater opportunities to reduce their taxable income.

Key Tax Benefits for 2025:

• Section 179 Deduction Limit: $2,500,000

• Total Equipment Purchase Limit Before Phaseout: $4,000,000

• Bonus Depreciation Rate: 100% – applicable after Section 179 limits are met

• Eligible Equipment: New or used business-essential equipment and off-the-shelf software

Both Section 179 and bonus depreciation can be used together to maximize your tax deductions. These benefits apply to qualifying equipment purchases made and placed into service by December 31, 2025.

Whether you’re investing in construction equipment, technology, vehicles, or other business-critical assets, these tax savings can significantly reduce your costs.

*Please consult your tax consultant/accountant to fully understand the benefits and implications of Section 179.