179 Tax Saving
12/16/2025
Updated September 2025
As we move ever closer to the end of 2025, this is a great time to take a step back and look at how you can improve your operation and lower your tax bill before the year wraps up. One smart strategy: Taking advantage of the latest provisions in Section 179, a powerful tax incentive that can put real money back into your business.
Section 179 of the IRS tax code lets you deduct the full purchase price of qualifying new or used equipment purchased or financed during the year. That means instead of depreciating a machine over several years, you can write off the entire cost in the year you put it into service. Calculate your potential deduction using our tax calculator.
If you invest in equipment this year, you could see major savings on your 2025 tax return. Thanks to the passage of Public Law 119-21 (commonly called the One Big Beautiful Bill), the Section 179 dollar-for-dollar deduction limit for 2025 has been increased to $2,500,000.
Let's say you buy a $100,000 piece of equipment. If you put it into service this year, you could potentially deduct the full amount, saving you thousands in taxes. If you finance that purchase, you can still take the full deduction even though you've paid only a fraction of the cost in 2025. That's a win for both cash flow and tax savings.
There are other wins, too. If you want to upgrade old equipment, are expanding your operation, or are looking for a competitive edge with new technology, now's the time to make your move. Waiting could cost you. To qualify for this year's tax savings, the equipment must be purchased and placed into service by December 31, 2025.
A few things to keep in mind: while Section 179 deductions are limited to your 2025 active business taxable income before the deduction, any unused Section 179 amount can be carried forward to future tax years.
For 2025, the One Big Beautiful Bill restored 100% bonus depreciation, giving you even more flexibility. If your taxable income isn't high enough to use the full Section 179 deduction, bonus depreciation can still allow you to write off the entire cost of qualifying equipment and even generate a net operating loss. 100% bonus depreciation applies to qualifying equipment purchased after January 19, 2025, unless acquired under a binding contract signed earlier.
If the bonus deduction creates a net operating loss, subject to certain limitations, you may be able to carry that loss forward to use against income in more profitable seasons. This gives you multiple ways to benefit. As always, you should talk with a certified public accountant or other trusted tax advisor to make sure you're maximizing your deductions and staying compliant.
Need help choosing the right equipment? Your local dealer is ready to walk you through the process. They'll not only help you select the right machine, they'll also explain financing options that work for your budget and timeline.
Don't think of Section 179 as just a tax deduction. It's a chance to reinvest in your business, increase productivity and stay ahead of the curve. But you have to act before the clock runs out on December 31, 2025. Talk to your tax advisor and your local equipment dealer today to learn how you can make the most of Section 179 this year.