How Section 179 Can Save Your Business Big in 2025

If you’ve been considering adding or upgrading equipment this year, there’s good news: the “Big Beautiful Bill” (Tax Cuts and Jobs Act) expanded Section 179, giving business owners like you a powerful tool to save on taxes while strengthening your fleet.

Section 179 was designed to encourage businesses to invest in themselves. Instead of spreading out depreciation over several years, you can deduct the entire purchase price of qualifying equipment in the same year you put it into use. That means better cash flow, more savings, and faster growth.

What Is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. In 2025, the deduction limit is set at $1.22 million, which means you can write off that amount immediately—no waiting, no long depreciation schedules.

Key Benefits for Your Business

1. Immediate Deduction

Deduct 100% of the purchase price of qualifying new or used machines, up to $1.22 million in 2025. This is a huge advantage if you’re planning major purchases or multiple upgrades.

2. Improved Cash Flow

With Section 179, you don’t have to wait years to recoup your investment. You get the tax benefit right away, keeping more money in your business to cover operating costs, payroll, or reinvest in growth.

3. Wide Range of Eligible Equipment

Most compact and heavy equipment, attachments, generators, boom lifts, scissor lifts, and even certain business technology qualify. Whether you need one machine or an entire fleet upgrade, chances are your purchase can be deducted.

4. Simple Qualification

The rules are straightforward:

Equipment must be purchased and put into service during the 2025 tax year.
Both new and used equipment qualifies, as long as it’s new to you.
Financing and leasing often qualify too, giving you flexible options to manage your investment.

5. Year-End Deadline

To take advantage, your equipment must be purchased and placed in service by December 31, 2025. That means it’s not enough to order equipment—you need it delivered and ready to work before year-end.

Real-World Examples

Here’s how local businesses might use Section 179 to their advantage:

A construction company purchases a Cat® 336 Excavator and deducts the full cost in 2025, reducing taxable income immediately.
A landscaping business upgrades to a Next Gen Compact Track Loader and adds new attachments—all qualifying for deduction.
A utility contractor invests in portable generators and used aerial lifts, saving significantly on taxes while expanding capabilities.

These deductions don’t just lower your tax bill—they help you reinvest those savings into other areas of your business.

Why Act Now?

Every year, businesses rush to purchase equipment before the December 31 deadline. Acting early ensures:

You have the equipment on site and in service by the deadline.
You beat potential supply chain delays.
You lock in both the tax savings and the productivity boost from new equipment sooner.

Big Beautiful Savings on Equipment