Section 179 Tax Deduction

A part of the IRS tax code, Section 179 allows businesses to deduct the full purchase price of qualifying equipment bought or financed during the tax year. This significant tax incentive is designed to encourage businesses to invest in themselves by purchasing the equipment they need to grow. Section 179 can be extremely profitable for your business, allowing you to invest in equipment, vehicles, and software while retaining more of your tax dollars.

Jan 2, 2025 – The Section 179 deduction for 2025 is $1,250,000 (this is up from $1,220,000 in 2024). This is a $30,000 increase from 2024 and means U.S. companies can deduct the full purchase price of ALL qualified equipment purchases, up to the limit of $1,250,000. In addition, the “total equipment purchase” limit has been raised to $3,150,000 (up from $3.05 million in 2024).

The deduction can include both new and used qualified equipment. In addition, businesses can take advantage of 40% bonus depreciation on both new and used equipment for the entirety of 2025. Remember to keep supply chain issues and delivery times in mind when making your Section 179 purchases for 2025, as equipment must be purchased and put into service by midnight Dec 31st.

For more information you can also visit