Section 179: How to optimize this tax credit for savings on equipment.

Section 179,  along with many other tax codes, can be complicated when it comes to  practicall applications and how they fit into your business. Learn more about the Section 179 tax credit applies to equipment.

What is Section 179?

Section 179 is an IRS Tax Code for businesses that allows them to immediately deduct the cost of select equipment in the year they are purchased rather than using standard depreciation, which takes place over a long period of time.

  • Deduction Limit for 2025: $2,500,000 total​​

  • Spending Cap for 2025: $4,000,000—phase out above this level​​

  • Bonus Depreciation: After Section 179 cap, bonus depreciation is reinstated at 100% for qualifying equipment​

  • Eligible for New and Used Equipment​

     

What Equipment Qualifies for Section 179?

Almost any equipment purchased or financed for business use can qualify, so you can take advantage of substantial savings instantly this year.​​

  • Agriculture: Tractors, tillers, lawnmowers, and related implements used in farming operations​​

  • Snow Removal & Lawn Care: Snow blowers, mowers, trimmers, chainsaws, and snow accessories​​

  • Material Handling: Forklifts, lift trucks, pallet jacks, telehandlers, scissor lifts​​

  • Construction: Excavators, skid steers, track loaders, specialty equipment, utility vehicles​​

  • Other Qualifying Assets: Office equipment, off-the-shelf software, and improvements to non-residential buildings like HVAC, roofing, and security systems
     

 

Who Can Benefit from Section 179?

Section 179 is ideal for small and mid-sized businesses looking to grow, increase flexibility for asset allocation, and streamline tax planning. If your business needs equipment and wants a large immediate deduction, Section 179 offers unmatched benefits.​​

Note: Equipment must be used more than 50% for business and placed in service during the 2025 tax year. Deductions cannot be used to show a loss on your income statement. Consult your tax advisor for guidance based on your business’s specifics.

 

 

Section 179 vs. Standard Depreciation?


Section 179 is an IRS Tax Code for businesses that allows them to immediately deduct the cost of select equipment in the year they are
 
Feature                            Section 179 (2025)                             Standard Depreciation             
Deducction Limit $2,500,000 immediate write-off Years-long schedule 
Bonus Depreciation 100% after cap  Typically less (varies)
Flexibility Select asset allocation  Less fexible
Cash Flow Impact Major, up-front savings Gradual, long-term


Financing Equipment & Section 179

You can use Section 179 even when you finance equipment—allowing you to keep cash on hand while slashing your tax bill with big upfront deductions. This combination means you can upgrade your fleet, invest in advanced technology, or expand your business, all while improving cash flow.

 

Ready to Take Advantage of Section 179?

Browse our inventory of agriculture, snow removal, material handling, and construction equipment—all eligible for Section 179 savings. Not sure what qualifies for your business? Our team can provide personalized finance quotes and work with your tax advisor to find the best solution.

Quality is Who We Are. Equipment is What We Do. For details and inventory, visit your local dealership or contact us today!

 

Disclaimer: Quality Equipment does not offer tax advice. Please consult a qualified tax professional to ensure Section 179 applies to your business and to understand state-specific rules and evolving IRS guidelines.