Section 179 Calculator
Buy the machine.
Deduct the full cost.
Deduct up to $1,250,000 in qualifying equipment for 2025 — and stack 40% bonus depreciation on anything over the cap. Run the numbers below.
Run the Calculator2025 Limits
Section 179 deduction cap
Bonus depreciation on remainder
Place in service by Dec 31, 2025
Lower Your Tax Bill
Deduct up to $1250K on qualifying equipment in 2025 — and pull bonus depreciation on what's left.
Reinvest in Productivity
The savings go straight back into your operation — newer equipment, better margins, less downtime.
Year-End Deadline
Equipment must be purchased AND placed in service by December 31, 2025. No extensions.
Finance and Still Deduct
Section 179 applies to financed and leased equipment too — preserve cash, deduct the full price.
Estimate your 2025 write-off in seconds.
Calculate Your Savings
Enter the total purchase or financed amount (new or used qualifies).
Pick the bracket that matches your filing status — common SMBs sit at 24%.
Your Estimate
Enter an equipment cost to see your estimated tax savings.
Estimate only. Limits and bonus depreciation rates are subject to change and individual circumstances vary. This calculator uses 2025 federal limits — Section 179 max $1,250,000, spending cap $3,130,000, bonus depreciation 40%. State conformity varies. Consult a qualified tax professional or CPA before making financial decisions based on these numbers.
Most heavy equipment qualifies.
If it's used more than 50% for business and placed in service before December 31, 2025, it likely qualifies. New or used — both count.
Four steps from purchase to write-off.
Purchase or Finance Eligible Equipment
Buy or finance qualifying heavy equipment — loaders, excavators, tractors, attachments — before December 31, 2025. New and used both qualify, as long as the equipment is "new to you."
Place It Into Service Before Year-End
The machine must be delivered and actively in use by 2025-12-31. A signed PO doesn't count — it has to be on the jobsite.
File IRS Form 4562 With Your Return
Work with your CPA to claim the deduction on Form 4562 (Depreciation and Amortization). Specify the equipment and the amount you're electing under Section 179.
Keep Documentation On File
Retain sales invoice, financing agreement, and proof-of-delivery. Required if the IRS audits or asks for substantiation.
Questions we hear most.
Can I write off used equipment?
Yes — as long as it's "new to your business" and placed into service in the 2025 tax year. Used CASE CE excavators or pre-owned CASE IH tractors qualify just like new units.
Does leased or financed equipment qualify?
Yes. Section 179 applies to financed and leased equipment as well — making it ideal for buyers who want to conserve cash. Talk to us about CNH Capital financing to maximize cash-flow benefit alongside the deduction.
Do I have to claim the full amount?
No. You can elect any portion of the cost up to the annual limit. Some businesses split the deduction across multiple tax years using a mix of Section 179 and bonus depreciation.
What happens if I exceed the deduction limit?
Equipment cost above the $1.25M Section 179 cap can typically be deducted via bonus depreciation — currently 40% in 2025 per the TCJA phase-down. The remaining amount is then capitalized and depreciated normally.
Is there a spending cap?
Yes. The Section 179 deduction begins phasing out dollar-for-dollar once total qualifying purchases exceed $3.13M. Most contractors and farmers won't hit this — but it's worth knowing.
Secure your 2025 write-off.
Browse new and used equipment ready to deliver before year-end — or pair the deduction with CNH Capital financing through our Productivity Plus program.