Section 179 Tax Deduction

Pursuant to Section 179 businesses may be able to deduct from their gross income the full purchase price of qualifying equipment bought or financed during the tax year, reducing overall tax liability.

According to Section 179, businesses can expense up to $1,250,000 of qualified equipment acquired and placed into service in 2025, provided that the total purchases of that year do not exceed $3,130,000. In addition, businesses can take advantage of a 40% bonus depreciation on both new and used equipment for the entirety of 2025.

Equipment including tangible personal property used in business, computers, off-the-shelf and custom-built software, office furniture, office equipment, business-use vehicles, property attached to a building that is not a component of the building (large manufacturing equipment), and even certain improvements to non-residential buildings including fire-suppression systems, alarms and security systems, HVAC and roofing may qualify.

It’s important to consult with a tax professional or financial advisor to fully understand how Section 179 Qualified Financing can work best for your specific business situation. The scheduled deduction is good only for qualifying equipment purchased or financed and put into use by December 31, 2025.