Maximize Your Tax Savings With Section 179

As we enter Q4 and quickly approach the end of the year, we want to remind business owners to take full advantage of Section 179 of the IRS Tax Code. This powerful tax incentive allows you to invest in equipment while keeping more of your hard-earned dollars. Under the latest updates from the One Big Beautiful Bill Act (OBBBA), businesses can now deduct up to $2.5 million in qualifying equipment purchases — yes, that could include the Kubota you purchased in 2025!

Did You Buy Equipment in 2025?

If you bought a piece of equipment this year, be sure to check with your CPA or tax preparer about deducting the full amount under Section 179. In addition, 100% bonus depreciation has been permanently restored for both new and used equipment placed in service after January 19, 2025. This means you may be eligible to deduct the entire cost of qualifying assets — even if they were financed.

Buy Early to Qualify

To take advantage of Section 179 benefits for the 2025 tax year, equipment must be acquired and placed into service by December 31, 2025. It’s common practice to purchase equipment in Q4 but don’t delay — equipment that’s purchased but not delivered or used may not qualify until the year it’s put into service.

What’s New for 2025?

This year’s deduction limit has increased to $2.5 million, a significant jump from 2024’s $1.22 million. The phase-out threshold has also been raised to $4 million, meaning more equipment can be purchased before the deduction begins to reduce. These updates make 2025 one of the most generous years yet for equipment investment.

Be sure to discuss these limits with your tax preparer to see how your business qualifies.