Section 179 allows you to immediately deduct up to $1,220,000 in equipment costs from your taxable income for 2025. That means if you buy a $100,000 machine, you could potentially lower your tax bill by thousands—saving more money when it matters most.
The 179 Deduction
Take advantage of major tax savings when you buy or finance eligible heavy equipment. Put your machines to work—and your money back in your pocket.
What is Section 179?
Section 179 of the IRS Tax Code allows businesses to deduct the full purchase price of qualifying equipment—like loaders, excavators, and tractors—from their gross income in the same year it’s placed into service.
Instead of depreciating the equipment over several years, Section 179 lets you deduct the entire cost in 2025—which can lead to huge tax savings.
Why Use Section 179?
Lower Your Tax Bill
Deduct the Full Equipment Cost—In the Same Year
Invest in Productivity
Get the Equipment You Need—Now
Whether it’s a new loader, tractor, or excavator, Section 179 gives you the financial incentive to upgrade your fleet sooner. Stop waiting for “next season”—equip your team with more efficient, powerful machines that get the job done faster and smarter.
Use It Before You Lose It
Claim the Deduction in This Tax Year
To qualify for the 2025 deduction, equipment must be purchased and placed into service by December 31, 2025. There are no extensions—if you miss the deadline, you miss the deduction. Don’t wait until the last week of the year to act.
Combine with Financing
Finance the Equipment—Still Write Off the Full Cost
One of Section 179’s biggest advantages is that you can finance or lease equipment and still deduct the entire purchase price up front. This gives your business the power to conserve cash flow while maximizing tax savings at the same time.
Why Use Section 179?
How It Works:
• Enter the cost of the equipment you’re buying or financing
• See your potential tax savings based on the current 2025 deduction limit
• Instantly understand the real cost of your machine after tax write-offs
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Example:
Buy a $150,000 loader → You could deduct the full amount in 2025 and potentially save $31,500 or more in taxes (based on a 21% tax rate).
Section 179 Construction Equipment Deductions!
Looking to grow your fleet and reduce your tax bill this year? Now’s the time!
When you purchase or finance eligible construction equipment in 2025, you may be able to deduct the full cost—up to $1,220,000—under Section 179.
We’re here to help your business take full advantage of this powerful tax incentive.
Section 179 Calculator for your convenience!
Our team has put together a handy calculator for you to project your savings!
Contact the team for further questions that will get set up for the new year and a new machine.
Use our Section 179 Calculator to estimate your potential savings and plan smarter for the year ahead!
2025 Deduction Limits
(As of IRS Guidelines)
- Deduction Limit: Up to $1,220,000
- Spending Cap on Equipment: Up to $3,050,000
- Bonus Depreciation: 60% (phasing out year by year after 2023)
Example: Buy a $100,000 loader → Deduct the full $100,000 in 2025.
These figures are subject to change annually—consult a tax professional for the latest details.
Who Qualifies for Section 179?
✅ Businesses purchasing or financing equipment for active use in the current tax year
✅ Equipment must be new or used (but new to you)
✅ Machines must be placed in service by December 31, 2025
✅ Applies to most heavy equipment used in construction, agriculture, landscaping, and more
Commonly eligible: Backhoes, excavators, wheel loaders, skid steers, tractors, trenchers, and more.
Secure Your Write-Off
How to Claim the Section 179 Deduction
Follow these four steps to ensure you qualify for the full tax benefit.
01
Purchase or Finance Eligible Equipment
Buy or finance qualifying heavy equipment—such as loaders, excavators, tractors, or other machinery—before December 31, 2025. New and used equipment both qualify, as long as the equipment is new to your business.
02
Place the Equipment Into Service Before Year-End
To claim the deduction for 2025, the equipment must not only be purchased—but also delivered and actively in use by the end of the tax year. Simply signing a contract is not enough; the machine needs to be on your jobsite and operational.
03
File IRS Form 4562 with Your Tax Return
Work with your accountant or tax advisor to properly claim the deduction using IRS Form 4562 – Depreciation and Amortization. This is where you’ll specify the equipment details and the amount you’re electing to deduct under Section 179.
04
Keep All Documentation on File
Retain a copy of your sales invoice, financing agreement, and proof of delivery or service entry. This will support your deduction in case of an audit or documentation request from the IRS.
Frequently asked questions
Can I write off used equipment?
Yes—as long as it’s new to your business and placed into service in 2025.
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.
Do I have to claim the full amount?
No—you can choose how much of the cost to deduct (up to the annual limit).
What happens if I exceed the deduction limit?
You can take bonus depreciation (60% in 2025) on the remaining value, if eligible.
